Business
Vemanti Group and PVcomBank Launch Pilot Digital Lending Program to Drive Growth for SMEs
Vemanti Group and PVcomBank Launch Pilot Digital Lending Program to Drive Growth for SMEs.
About this update from Vemanti Group Inc.
[{"type":"text","content":"\n IRVINE, Calif., Sept. 07, 2022 (GLOBE NEWSWIRE) -- Vemanti Group, Inc. (“Vemanti” “Vemanti Group” or the “Company”) (OTCQB: VMNT) and Vietnam Public Joint-stock Commercial Bank (“PVcomBank” or the “Bank”) today announced a joint pilot digital lending program aimed at driving growth for Small and Medium-sized Enterprises (SMEs) in Vietnam. The program includes a portfolio of nimble and innovative products collaboratively developed by both parties for the SME clientele. The initial product to kickstart the program will be a unique financing option designed to provide small US-bound exporters—majority of which are SMEs—access to short-term loans at competitive rates. At the end of the pilot period, the full program will be available via PVcomBank branches and digital banking platform. SMEs currently play a major role in Vietnam's economy (US$362.6 billion in 2021 per the World Bank), accounting for more than 41% of its GDP according to the Vietnam Association of SMEs. However, it is estimated that currently 70% of SMEs lack viable options when it comes to short-term working capital loans. This is their biggest obstacle in the course of conducting business. Growing exports and overseas opportunities only exacerbate the problem, as they often face long accounts receivable (AR) cycles of more than 2 months on the average. The new lending program will allow businesses to borrow based on their existing trade receivables. They can use the capital to cover strategic business needs, such as staffing, operations costs, inventory, product development, and manufacturing, as well as marketing efforts to build their brand and grow their customer base. “One of our targets is to provide quick and easy financing for the underserved SMEs that make up the majority of current economic activity and future growth of Vietnam, an attractive up-and-coming market on a global scale. We are thrilled to launch this program to make the opportunity of selling to US-based buyers more accessible for those businesses,” said Tan Tran, CEO of Vemanti. “PVcomBank shares our commitment to championing underserved populations of business owners, knowing they often lack access to the more traditional methods of capital.” Each loan application will be jointly ...