Line of Credit Benefits for Vietnam Entrepreneurs


Through the many ecosystems that have become a part of our world’s progress, the startup ecosystem has struck with people. Vietnam, being the third-largest startup ecosystem in Asia, is jumping its way through other economies. One of the major reasons for Vietnam’s sudden growth is the government’s constant focus on breeding the homegrown growth of technology and innovation.

This has resulted in 3000 startups making their way into Vietnam’s increasing economy. However, with such a rise, the question of their survival comes into play. Not every small business or startup is funded on its own to be enough for the long run. For an entrepreneur, one of the most challenging tasks is to find investors to help them keep their startups afloat. 

Line of Credit Benefits


Most of the entrepreneurs’ next step is to take a loan from a bank. Let’s see how the line of credit benefits the Vietnamese entrepreneurs.

Line of Credit System in Vietnam

To understand the prevailing system of credit line in Vietnam, let’s first understand what a line of credit is. It is the amount of credit which is extended to the borrower. It gives you the freedom to borrow in increments, repay and borrow again. This can happen for just as long as the line remains open for you.

Here’s how you can further categorize it for better understanding:

Funds – Both, secured cash advances and unsecured funds are offered under the line of credit.

Credit Line – Get access to a predetermined line of credit. You can also apply again for funds once you reach your credit limit.

Application Process – It can take up to 48 hours or more for the funds to get approved. It depends upon the fact that minimum requirements are fulfilled or not.

Accessibility – Most of the business credit lines will let you to access the funds if you are a small business. But sometimes small working capital can take a long time.

Fees – Several fees such as processing fees or admin cost might be applicable if you’re applying through a bank or an online business funds provider.

There are a lot of benefits to the line of credit. However, for a startup to borrow money from a bank to keep their business growth is not the best solution.

The reason is simple. Banks don’t provide loans to small businesses and startups that easily. They have strict rules and regulations regarding the same. There is continuous paperwork for the application process and high interest rates are applied on the received funds. Lack of collateral is another reason why it gets difficult for entrepreneurs to reap the line of credit benefits from a traditional bank.

Thanks to the startup culture. The solution to the traditional bank’s line of credit system is itself a byproduct of the startup culture. One such product which benefits any small and medium businesses and startups for all the Vietnamese entrepreneurs is Finaxar.

What is Finaxar?

Finaxar is an institution that has partnered with IVB Bank to help provide small businesses and startups with financial help. This ingenious partnership is a combination of IVB along with Finaxar’s own technology called FXR ONE.

Finaxar’s SME credit solutions is one of its own kind. Online and automated credit provides the access of funds of up to 500 million VND in Vietnam via IVB. The line of credit offered also comes with a fixed tenure and a flexible repayment plan. Not only this, there is no collateral required & the fee is charged only on the drawdown amount.

Benefits & Process of Finaxar

Finaxar offers a process which is extremely simple, easy and fast. 

  • As a business, your company should be at least 6 months old with a total revenue of $50,000. It must also have a verifiable sales history supporting the same. And that’s it, you are now one step closer to getting a working capital for your business.
  • Now comes the application process. It involves an easy sign up by linking your accounting software with no application and processing fee involved in it.
  • The credit assessment takes about 30 minutes. And, as soon as it’s approved the funds are transferred within the time span of 24 hours.
  • There is no minimum or maximum limit when it comes to withdrawing money from your approved funds. You can access your funds within the credit line.
  • The repayment of withdrawn money comes with a fixed and convenient plan. You approve it before the funds are transferred. You have to pay interest only on the amount you have used.
  • Last but not least, there are no hidden fees. The only fee you are charged is when you draw down the amount.

Finaxar’s line of credit benefits in Vietnam are what every Vietnamese entrepreneur needs to help them grow their business. SMEs and startups nowadays account for about 96 to 98% of all enterprises. Hence, a fintech startup like that of Finaxar is what Vietnam needs to improve their economy.

Finaxar’s state-of-the-art technology, IVB Bank’s credit line are about to change the face of financial support in Vietnam.

Apply for a working capital in Vietnam today right here.