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The Financing Options Available
The Financing Options Available

This article describes the financing options available.

Melissa avatar
Written by Melissa
Updated over a year ago

There are several financing options available for SMEs to apply, which caters to the SME business needs.

The available options are as follows:

(a) Business Term Financing. 

Purpose of Financing

Working capital, expansion and bridging

Financing Amount

Up to RM 500,000

Return Rate

Between 1.0%-1.5% per month

Tenor

Up to 18 months

Payment

Equal Monthly Installment

Product Type

Conventional

(b) Invoice Financing. 

- The invoice financing is divided into two types which are the Accounts Receivable Financing and Accounts Payable Financing. Below are the details :-

(i) Accounts Receivable Financing

Purpose of Financing

Cash flow solution- Seller (Issuer) assign future receivables or invoices that they issue to their customers for immediate cash

Financing Amount

Up to RM 1 million (Up to 80% of the invoice value)

Return Rate

Between 8%-18% per annum

Tenor

Up to 120 days

Payment

Bullet payment of full returns and principal at the end of tenure

Types

Notified (MBTF)- Where the buyer is notified that the invoice has been assigned to Funding Societies by the Seller (Issuer) to obtain financing in advance. In this case the buyers will pay directly to the escrow account, bypassing the Issuer.

Non Notified (MBIF/MBIIF)- Where the buyer is not aware that the Issuer has assigned the invoice to Funding Societies for financing. The buyer will continue to liaise with the Issuer and pay directly to them. Once the Issuer receive the payment from their buyer, they will make the payment to Funding Societies.

Product Type

Islamic & Conventional

(ii) Accounts Payable Financing

Purpose of Financing

Cash flow solution- For the purpose of funding the Issuer's transaction of the raw material purchase.

Financing Amount

Up to RM 1 million (up to 100% of the invoice value)

Return Rate

Between 8%-18% per annum

Tenor

Up to 120 days

Payment

Bullet payment of full returns and principal at the end of tenure

Product Type

Islamic & Conventional

(c) Dealer Financing

Purpose of Financing

To finance the used motor vehicles for used motor dealers

Financing Amount

85% of the vehicle purchase or market value

Return Rate

Up to 12% per annum

Tenor

Up to 120 days

Payment

Bullet payment of full returns and principal at the end of tenure

Other Information

Collateralized- Repossession of motor vehicles in the case of default

Product Type

Conventional

(d) Micro Financing

Purpose of Financing

Working Capital and Expansion

Financing Amount

Up to RM 200,000

Return Rate

0.8%-1.5% per month

Tenor

Up to 18 months

Payment

Equal Monthly Installment

Product Type

Islamic & Conventional

Our credit team will be in touch with you for further details in respect of the available options based on the financing product that best suited your requirements and criteria. 

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