As an invoicing, payment & financing platform, Paper.id (PT. Pakar Global Digital) has announced a strategi partnership with PT Bank Jago Tbk to continue in supporting business to increase business funding distribution especially retailers and distributor in FMCG industry. Besides, this partnership acts also a commitment to support government’s agenda for business digitization in Indonesia.
CEO & Co-founder of Paper.id, Jeremy Limman said, “This partnership with Bank Jago aims to ease users in accessing various digital-based financing products, especially for retailers in the FMCG industry with a smaller margin, such as convenience stores. They can maintain their cash flow more smoothly due to an additional payment term for their purchasing needs, through a more economical working capital funding with a dynamic amount of disbursement based on their business needs.”
Both distributors and retailers often face many kinds of problems. For distributors, their cash flow usually lacks control due to untimely payments from customers. On the other hand, convenience stores also have a bottleneck in paying their bills because of several limitations, such as unsold goods. The partnership between Paper.id and Bank Jago aims to help distributors get early disbursement of funds, while on the convenience store side, they receive flexible net terms.
In addition, this partnership is expected to support the government’s digitization effort in providing a digital economy ecosystem to create and nurture business more efficiently and effectively. Hence, the competitiveness of business actors increases simultaneously and shifts unbankable business actors to become bankable through a neater digital bookkeeping, in order to obtain funding from trusted financial institutions.
Jeremy Limman also added that through this commitment, there will be a row of financial institutions that are ready to provide financial support for the community through Paper.id platform. Previously, Paper.id has established strategic partnerships with various institutions such as Modalku, Investree, Koinworks, and Alami with a total disbursement reaching IDR 100 billion as of March 2021. Paper.id has also officially registered as a financial technology provider at Bank Indonesia and registered with OJK on Digital Financial Innovation (IKD).
Looking back at Indonesia’s economic conditions in the first quarter of 2021, the conditions gradually improved and increased around 2.15% compared to the fourth quarter of 2020. The same trend can be seen on Paper.id where the number of invoices created increased 1,5 times from March 2020 until now. Looking at this data, Paper.id is quite optimistic that the number of business funding will grow at least 3 times compared to the previous year.