This study examines whether paid-up capital signals SME creditworthiness in fintech lending using 757 loan applications from Funding Societies Malaysia. Higher paid-up capital significantly reduces the likelihood of receiving riskier loan grades, while loan characteristics, industry, firm age, and size also influence risk assessments. The findings show that fintech platforms may interpret traditional credit-risk indicators differently from conventional lenders, while confirming paid-up capital as an important signal of SME creditworthiness. (read more)
by: Joshua Abraham Kizige, Lan Thi Phuong Nguyen & Jing Hui Kwan
