The company uses a proprietary AI-based risk-management tool to assess companies before providing working capital

Hong Kong-based start-up FundPark is seeking a new round of fundraising to help small and medium enterprises (SMEs) access trade finance. Unlike banks, FundPark provides SMEs with a range of financing options for working capital without collateral requirements.

CEO and co-founder Anson Suen said FundPark could finance up to 70% of the purchase order or contract value, adding that the company uses artificial intelligence technology and data analysis to develop its proprietary risk-management tool, which produces predictive models that enable clients to obtain loans without collateral. (SCMP)

SMEs represent 96% of all businesses in Asia and provide two out of every three private-sector jobs, said Suen, noting that more than 40% of SMEs have trade-finance requests rejected, resulting in a US$1.7tn global financing gap.

FundPark has already supported more than 7,000 merchants with a combined gross merchandise value in excess of US$4bn since it was founded in 2016, said Suen, whose co-founders are Carlos Tsang and Henry Mok.

“We set up an e-commerce business, and the business did well,” recalls Suen. “We wanted to expand but were rejected by the banks in applying for financing at that time.” FundPark has come a long way since then. It now functions out of a more than 8,000 square feet of office space in Kwun Tong, with about 100 employees. It also has an office in Shenzhen.

The firm is now focusing on cross-border e-commerce merchants in Hong Kong and mainland China.

FundPark raised about US$250 million in April last year from an asset-backed securitization facility with Goldman Sachs (NYSE: GS) as senior facility provider.

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