Navigating Alternative Finance in Asia

As Choco Up, a Singapore-based growth financing platform, was recognized among CNBC and Statista’s Top Fintech Companies for 2026, its CEO Percy Hung shared insights into the evolving finance landscape for small and medium-sized enterprises (SMEs) in Asia.

Beyond Bank Lending

Hung notes that SMEs are increasingly seeking alternative financing not because banks aren’t offering credit, but because they need capital solutions that align with how their businesses operate. While traditional bank loans remain valuable for those who qualify, many SMEs—particularly digital-first companies—grow in ways that outpace conventional banking processes.

When Revenue-Based Financing Isn’t the Answer

Hung is direct about his company’s product limitations: “There’s little reason to use more expensive capital when a lower-cost option can meet the same need.” He emphasizes that businesses should take advantage of bank financing when available, and equity funding may be better suited for longer-term investments or ventures with uncertain returns.

Data-Driven Underwriting

Choco Up leverages real-time transaction data to assess risk more accurately than traditional credit scores alone. This approach is particularly valuable for newer businesses with limited credit history but healthy revenues—allowing them to access capital based on their actual performance rather than perceived risk.

Solving Business Problems, Not Just Selling Products

Hung’s key takeaway from financing over 1,000 businesses: “SMEs are not necessarily looking for another financial product. They’re trying to solve a business problem.” Whether it’s bridging cash flow gaps, fulfilling large orders, or funding growth initiatives, Choco Up aims to provide targeted capital solutions that address specific business needs.

What’s your experience with alternative financing options? Share your thoughts in the comments below.