CrowdLending (Business) - Cambodia

The country in Cambodia is projected to reach a total transaction value of US$639.90k in the Crowdlending (Business) market market by 2024.
In comparison globally, it is noted that China is expected to achieve the highest transaction value of US$16bn in the same year.
Cambodia's CrowdLending market is gaining traction among local businesses seeking alternative capital raising options amidst limited traditional financing avenues.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in Cambodia has been experiencing significant growth in recent years.

Customer preferences: Cambodian businesses are increasingly turning to CrowdLending as a source of financing due to the ease and convenience it offers. This alternative form of lending allows businesses to access funds quickly and without the need for extensive paperwork or collateral. Additionally, CrowdLending platforms often offer competitive interest rates, making it an attractive option for businesses looking to expand or invest in new opportunities.

Trends in the market: One of the key trends in the CrowdLending market in Cambodia is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, cutting out traditional financial institutions. This trend has gained traction due to the growing trust in online platforms and the desire for more transparent lending processes. Peer-to-peer lending also allows for greater flexibility in loan terms and repayment options, catering to the specific needs of Cambodian businesses. Another trend in the market is the increasing focus on social impact investing. Many CrowdLending platforms in Cambodia are now offering loans specifically for businesses that have a positive social or environmental impact. This trend reflects the growing awareness and importance of sustainability and responsible business practices in the country. Investors are increasingly seeking opportunities to support businesses that align with their values, and CrowdLending platforms are providing a platform for these investments.

Local special circumstances: Cambodia has a large number of small and medium-sized enterprises (SMEs) that often struggle to access traditional financing options. The lack of collateral and credit history often makes it difficult for these businesses to secure loans from banks. CrowdLending platforms have emerged as a viable alternative, offering a more inclusive and accessible financing option for SMEs. This has contributed to the growth of the CrowdLending market in Cambodia, as businesses are able to access the funds they need to grow and thrive.

Underlying macroeconomic factors: The growth of the CrowdLending market in Cambodia can be attributed to several underlying macroeconomic factors. Cambodia has experienced steady economic growth in recent years, which has created a favorable environment for business expansion and investment. Additionally, the government has implemented policies to promote financial inclusion and support the growth of SMEs. These factors, coupled with the increasing availability of internet and mobile banking services, have created a conducive environment for the development of the CrowdLending market in Cambodia. In conclusion, the CrowdLending (Business) market in Cambodia has been growing rapidly due to customer preferences for convenience and competitive interest rates. The rise of peer-to-peer lending platforms and the focus on social impact investing are key trends in the market. The local special circumstance of a large number of SMEs in need of financing and the underlying macroeconomic factors of economic growth and government support have also contributed to the development of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.