INDONESIA's Bank BRI will offer two trillion rupiah of working capital loans through peer-to-peer lending platform Investree, a large portion of which will be allocated for entrepreneurs in the creative sector.
The loans will be offered via invoice financing, where the borrower's accounts receivable form the basis of each loan. Investree will conduct a credit scoring analysis for each loan application before getting approval from Bank BRI to release the funds. Indonesia’s Chamber of Commerce and Industry estimates that the local creative sector - which includes handicrafts, design, fashion, architecture, culinary arts and advertising - contributed significantly to the national economy in 2019, said Bank BRI in a press statement.
But creative businesses typically do not have physical assets such as land or machinery to put up as collateral for a bank loan, it added. This represents an untapped opportunity for the sector's growth. "We know there is a gap between banks and several business sectors in Indonesia. We need to work with fintech companies so that we can reach more people, especially MSMEs in the creative sector," said Bank BRI’s director of digital technology and operations Indra Utoyo.
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