In Singapore, MSMEs constitute a vital element of the business landscape, constituting 99.0% of enterprises and employing 72% of the labour force. MSMEs (or micro-enterprises) are often tiny businesses with less than ten employees and minimal capital.
These enterprises are frequently compelled to seek finance from alternative lenders since they are caught between small and corporate credit programs offered by traditional institutions.
This is one element that has contributed to the emergence of fintech credit options such as balance sheet business lending, invoice finance, crowdsourcing, and peer-to-peer (P2P) lenders. 68 percent of micro, small, and medium-sized enterprise (MSME) owners are amenable to loans from financiers outside the established financial services business.