How can financial services remove barriers hindering technology channel growth?
SINGAPORE–(BUSINESS WIRE)–Technology supply chains are under pressure as digital projects grow larger and more complex, straining the resources of technology channels. Smaller distributors, in particular, are struggling to secure favourable financing terms.
According to the International Finance Corporation (IFC), more than 40% of working capital in smaller companies is dedicated to paying suppliers, and at least 20% of their financing gap is due to supply chain payment delays. These issues can restrict technology channels, especially in emerging markets pursuing digitisation opportunities such as cloud and artificial intelligence.
“Distributors often face short vendor payment terms that don’t match their cash flow, and without credit insurance or collateral, banks tend to steer clear. On top of that, inconsistent payment behaviour and limited transparency make financing even harder to secure,” says Wei Cheng Wong.
Solving such issues unlocks tremendous value and growth in channel markets, a key focus for Wei Cheng, who was recently appointed as Head of APJ Portfolio Management for the WeFi Technology Group.
She has built a 13-year career in corporate banking through firms such as Scotiabank and the AMBank Group, and her current role closely parallels corporate banking, as both involve structured credit solutions, risk management, and relationship-driven portfolio oversight, not to mention the same analytical and regulatory rigour.
Wei Cheng sees strong parallels between traditional banking challenges and current affecting technology channels, particularly emerging markets such as India, Indonesia and South Africa.
“Rigid collateral requirements and low risk appetite among banks often exclude smaller players from access to credit. These issues are compounded in fast-growing economies, where traditional financial institutions may lack the flexibility to adapt.”
Even in more established markets like Japan, Wei Cheng notes structural challenges to channel finance. “Despite its strong infrastructure, Japan’s labour shortages and conservative business culture can slow innovation and create financial gaps, especially within a fragmented banking environment.”
Solutions for these issues emerge when companies like WeFi combine digital platform technologies with top human expertise. It navigates emerging market complexities, manages lender expectations, and applies institutional credit discipline to a platform-driven approach.
This approach is incredibly effective, supporting finance professionals with low risk cutting-edge technologies. They can adjust, solve, and innovate funding solutions for vendors, distributors, and resellers, relieving the pressure that comes from the large IT investments needed for the next epoch of our digital civilization.
“Leveraging technology and people is unlocking new value and capacity in those channels with the aim of removing barriers and enabling sustainable growth across the ecosystem,” says Wei Cheng. “The best way forward is to tackle these challenges by offering unsecured, non-recourse financing, automating credit approvals, and integrating directly with vendor systems. It’s a model that makes credit more accessible and scalable, especially in fast-growing markets where traditional banks struggle to keep up.”
Contacts
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