Monday, 13 July 2020

Alliance Bank partners with CGC to provide fast financing for Malaysian SMEs

Alliance Bank Malaysia Berhad and Credit Guarantee Corporation Malaysia Berhad (CGC) have entered into an agreement to provide fast and simple financing to help Malaysian small and medium enterprises (SMEs) accelerate growth.

Through CGC’s Portfolio Guarantee Scheme, Alliance Bank can help eligible SMEs that lack adequate collateral or credit track record, obtain hassle-free, working capital financing to grow their businesses. The process requires minimal documentation and CGC covers up to 70% of the principal financing amount on a portfolio basis. The financing amount is for a minimum of $24,001 (MYR 100,000) and a maximum of $240,010 (MYR 1 million) per SME account, with financing tenure of up to seven years.

This portfolio guarantee agreement has a tranche size of $72 million (MYR 300 million), and forms part of the build-up to a $240.01 million (MYR 1 billion) portfolio with CGC by 2020. 

Through the partnership with CGC, Alliance Bank has already approved $79.20 million (MYR 330 million) in loans from previous tranches to help about 750 SME businesses who provide employment to almost 13,750 people. The new $72 million (MYR 300 million) million tranche will allow Alliance Bank to finance another 600 plus SMEs to expand their businesses.

The partnership aligns with the Bank’s and CGC’s shared vision of promoting the growth and development of SMEs in Malaysia.

Alliance Bank’s Group Chief Executive Officer Mr. Joel Kornreich said, “The SME segment is a core focus for the bank. In building up to this billion Ringgit portfolio, we stay committed to create easy access to financing and providing innovative solutions to address the pain points faced by business owners at different stages of their businesses. We want to create additional avenues to help our SME customers expand by collaborating with CGC.”

CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said, “This fifth collaboration between Alliance Bank and CGC further strengthens our joint commitment to provide greater access to financing for SMEs through our innovative and award-winning Portfolio Guarantee Scheme which is both cost effective and efficient. To date, CGC has availed over $3.360 billion (MYR 14 billion) worth of financing via its Portfolio Guarantee Scheme which has benefited more than 27,000 SMEs.”

Malaysian-owned business establishments in the country of at least three years are eligible to apply for Alliance Bank-CGC Portfolio Guarantee Scheme.

Re-disseminated by The Asian Banker





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