Dealer financing is a new type of SME financing offered by Funding Societies. This collateralized financing is taken by Malaysian Car Dealers to finance the purchase of motor vehicles.

Car dealers will seek financing from Funding Societies to purchase vehicles as inventory.

Funding Societies will provide financing to car dealers, which is funded from our investors. At the end of the tenure or earlier, the car dealers will make a payment of principal + returns back to the investors involved.

Ownership claim on the motor vehicle purchased by the car dealers. In the event of a default, the financier has the right to repossess the motor vehicle.

8 - 18% per annum.

Bullet payment , where principal and returns will be paid at the end of the financing tenure. The Issuer will have the option for early payment , with no early payment charges. The returns charged is calculated per day.

Example
You’ve invested RM1,000 into Dealer Financing (12% returns p.a.) for a tenure of 90 days.

0.1% per day on the outstanding amount after a 7-day grace period.

Up to 120 Days.
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The Service Fee charged is 30% on the returns earned, the higher service fees compared to other products is due to the higher operational requirements and costs involved for this product, given its collateralized nature.

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In the event of default, there will be recovery efforts made, such as restructuring the Note or repossessing the motor vehicle. After the motor vehicle is repossessed, it will be sold and the proceeds will then be distributed back to our investors.

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Default Risk - In the event of a default, there’s a potential for your principal amount to be held longer or potential for loss of principal. However, as this financing is collateralized, potential principal loss could be lessened from selling the motor vehicle.
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Minimum investment amount: RM 100