KUALA LUMPUR, March 19 -- If you scan the business section of any publication these days, you will have come across the term "P2P lending" but what exactly is it? And why is it gaining traction as a funding solution for SMEs in Malaysia?

Peer to Peer (P2P) financing is simply the practice of raising financing through an online platform, explained Yoon Jun Jie, CEO and founder of Capsphere, Malaysia's first asset based P2P financing and investment platform registered with Securities Commission Malaysia.

"It facilitates the connection between businesses seeking funding with investors, including retail investors, high-net-worth individuals, institutional investors, and government entities, who are seeking to diversify their investment port...