Choco Up Launches Accounts Payable Financing for SMEs
Choco Up has introduced an accounts payable financing product specifically for small and medium-sized enterprises. This new offering expands its existing credit suite, aiming to help businesses better manage their cash flow amidst increasingly longer customer payment cycles. SMEs frequently encounter a timing mismatch where supplier payments are due within 30 days, but customer settlements can take 60 to 120 days, creating significant operational gaps. The company notes a year-on-year rise in slow payments, reaching 44.39% in Q4 2025, particularly impacting sectors like manufacturing, logistics, healthcare suppliers, and B2B technology. Choco Up’s solution leverages AI to streamline applications and underwriting, automating document checks and flagging potential fraud to expedite credit decisions and offer an alternative to traditional lending.
Choco Up’s launch of accounts payable financing, powered by AI, signifies a critical evolution in SME financial services across Asia. The region’s dynamic startup and tech ecosystem often sees rapid growth, but also faces inherent challenges in cash flow management, particularly for businesses with extensive procurement needs or project-based models. Traditional lending institutions frequently struggle to adapt to the nuanced risk profiles and rapid turnaround times required by these agile businesses, leaving a significant financing gap. Choco Up’s use of AI for streamlined underwriting and fraud detection addresses these pain points directly, offering a faster, more accurate, and accessible alternative to conventional credit. This innovation not only supports the operational stability of SMEs but also fosters greater resilience within the broader Asian supply chain.
The increasing prevalence of slow payments, as highlighted by Choco Up, underscores a systemic issue that can stifle innovation and growth within the SME sector. By providing a dedicated solution that bridges the gap between supplier payment terms and customer settlements, Choco Up is not just offering a product; it’s enabling businesses to maintain liquidity, invest in growth, and fulfill orders without being constrained by delayed receivables. This move is particularly impactful in high-growth Asian markets where SMEs are the backbone of economic development, driving job creation and technological adoption. The shift towards AI-driven alternative financing models is a trend to watch, as it reshapes how capital flows to the businesses that need it most, ultimately accelerating economic momentum across the continent.
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