The rise of big data has led to a new era of using analytics in decision-making – especially in Asia, Etienne Van den Bogaert, Head of Receivables & Supply Chain Finance, EFA Group, writes for finews.asia.

A survey conducted by Deloitte showed that the respondents feel that analytics will become more important to their organizations in the next three years and that its greatest benefit is a key factor in making better decisions, and Singaporean companies are picking up on this.

This trend is great news for the local data analytics sector. In Singapore, the industry is expected to contribute at least $1 billion to the economy this year alone according to the Economic Development Board.

However, being in the service industry, these firms often lack significant physical collateral and assets, leaving them unable to turn to banks and similar financial institutions for financing. This results in cash flow issues that could limit the growth of these companies, if not hamstring them completely.

How Can Data Analytics Persevere?

Fortunately, there is an increasing number of alternative financing sources that these companies can turn to apart from traditional channels of funding.

  • P2P Financing: Peer-to-peer (P2P) lending involves cutting out financial institutions and focusing on lending between individuals. Loans are unsecured and do not require any collateral, making them a good fit for data analytic companies.
  • Equity Crowdfunding: Gone are the days where investing in companies was reserved for the wealthy. With the advent of crowdfunding, companies seeking funding for a project or a venture can turn to online platforms to raise money from large groups of investors seeking to exchange cash for equity.
  • Receivables Financing: Receivables financing is the purchase of invoices from firms to help improve their cash flow. By collecting the cash of receivables early, businesses have more cash on hand for growth priorities such as investment in new products or markets.

With these ready sources of financing available, data analytic firms can now turn to alternative options to diversify their source of funding in order to sustainably grow their business and meet the burgeoning market demand. The EFA Group provides alternative financing solutions to small and medium-sized enterprises (SMEs) in Asia, Middle East, Europe and Africa.

Established in 2003 in Singapore, the Group has since expanded in size and capabilities, and now employs over 60 personnel between its offices in Singapore, Geneva, Dubai and London.