Loans through Fintech Lending, Akseleran Grows 97 Percent

The peer-to-peer (fintech P2P) lending-based financial technology platform PT Akseleran Financial Inclusive Indonesia (Akseleran) revealed a trend of increasing monthly loans from MSME borrowers (borrowers).

CEO & Co-Founder of Akseleran Ivan Tambunan revealed that the record for monthly loan disbursements broke again in May 2021, which amounted to more than IDR 140 billion.

“This achievement also exceeds the previous Acceleration record in April 2021 which reached IDR 126 billion and far above the previous year’s monthly record which had penetrated IDR 120 billion in November 2020,” he said in an official statement, Monday (7/6/2021).

Ivan explained that since January 2021, the performance of Akseleran’s business loan distribution has exceeded the existing monthly average and continues to show consistency to continue to grow until the Eid moment at the beginning of the second quarter of 2021.

On the one hand, Ramadan is a blessing for the company because there is an increase in the needs of business actors and the community as borrowers.

“The economic activity also increases, especially during the Eid celebration yesterday, the level of public consumption increased and the need for working capital for businesses would certainly increase,”  he added.

Akseleran’s Growth Continues, Driven by MSMEs

According to Ivan, the growth of Akseleran which continued to occur until the end of the second quarter of 2021 was driven by MSMEs that needed more business working capital with invoice financing loan products than before and who were trying to improve their services, especially in industries directly related to the month of Ramadan.

Through this achievement, the cumulative disbursement of Akseleran’s loans since its establishment has reached more than IDR 2.5 trillion to more than 2,500 borrowers until the end of May 2021.

Ivan said this achievement grew 97 percent (year-on-year/yoy) compared to the same period the previous year.

Growth in terms of business loan distribution is also in line with the improvement in Akseleran’s non-performing loan ratio, which cumulatively stands at 0.12 percent of total loan disbursements.

“So far, to keep the ratio of bad loans low, Akseleran still prioritizes invoice financing loan products which dominate up to 70 percent and the rest uses pre-invoice financing products,” he added.

For your information, invoice financing means that the business actor who becomes the borrower has completed his work or project, but has not received payment from the payor.

Usually, payments from payors take up to a matter of months, so borrowers need capital injections from P2P lending loans for liquidity and maintaining the company’s cash flow.

Meanwhile, in pre-invoice loan products, borrowers apply for new loans as initial capital in carrying out their work or business.

The five largest business sectors facilitated by Akseleran currently still come from the engineering or construction sector, then business & consumer services, coal & related energy, retail (online), and oil & gas.

The growth of Akseleran is supported by more than 150 thousand individual lenders spread from Aceh to Papua and more than 15 lender institutions that the company has.

“All of these achievements make us optimistic that we can disburse a total business loan of IDR 2 trillion by the end of 2021,” he closed.

Foreign Lenders Interested in Indonesian Market Potential

Foreign lenders (lenders) are increasingly fond of distributing loans through Indonesian peer to peer (P2P) fintech lending.

The Financial Services Authority (OJK) noted that until April 2021, there were 2,204 accumulated lender accounts originating from abroad.  Of this amount, 541 lender accounts originating from abroad were recorded as still actively providing loans at P2PL.

Meanwhile, in terms of loan value, of the Rp 20.19 trillion outstanding industrial loan value, 24.10% were loans whose lenders came from abroad, the rest from local lenders.

With a simple calculation, active lenders have active loan disbursements to foreign lenders an average of Rp 8.99 billion per account, said Bambang.

According to Bambang, some of the reasons they come to Indonesia are usually because they are attracted to Indonesia’s vast market potential and relatively high yields compared to their country.