Kuala Lumpur, 9 March – RHB Bank Berhad (“RHB”) today, signed an agreement with Credit Guarantee Corporation (CGC) for its newest product, the RHB Financial Supply Chain Portfolio Guarantee (RHB FSCPG) which is aimed at assisting SMEs in growing their businesses at a reasonable cost.
“At RHB, we strive to provide SME customers with seamless experiences. The RHB FSCPG has been designed to make available a cost-efficient distributor financing facility for SMEs. With RHB’s push towards digital technology, this programme will run on RHB’s online FSC platform that will enable SMEs as well as their vendors and suppliers to connect and manage their cash flow and inventory more efficiently,” said Dato’ Khairussaleh Ramli, Group Managing Director for RHB Banking Group.
The RHB FSCPG is a new product proposition which provides working capital financing, specifically for SMEs who lack collateral in supporting their need for funding. The partnership programme is offering financing of up to RM2 million which is partially secured against CGC guarantee.
“In our continuous efforts toward enhancing the viability of SMEs, our partnership with RHB would enable us to better assist SMEs who are in need of financing but are lacking in collateral. Through the RHB FSCPG, CGC will facilitate the access to working capital needs of SMEs,” said En. Mohd Zamree Mohd Ishak, President / Chief Executive Officer for CGC.
The Portfolio Guarantee (PG) is one of the innovative products that CGC had introduced in recent years that was aimed at not only further improving access to financing for the SMEs but also the speed at which loans are processed.
“The guarantee scheme that made the most contribution to CGC loans growth in 2015 was the PG. CGC approved a total of RM1.7 billion with five (5) financial institutions (FIs), which accounted for 50% of loan approvals,” emphasised Zamree.
“CGC is always committed in continuously inventing innovative financing solutions to suit the needs of Financial Institutions (FIs), which would eventually ease access to financing for SMEs. With the signing of this agreement today, we are looking forward to leverage on RHB’s wide branch network to further strengthen our mandated role in spurring SME growth and development in the country,” noted Zamree.
A web-based solution, the RHB FSCPG provides a seamless platform for billing and payment processes between members of the supply chain community, which include buyers, sellers, suppliers and distributors. The Distributor Financing Facility (DFF), which is a feature within the RHB FSCPG platform, leverages on the online portal, where Reflex Cash Management allows buyers to submit financing requests and make repayments.
The programme is a convenient online platform with drawdown facilities that enable online payment transactions, without the need to submit physical documentation. The guarantee fees will be borne by RHB, and no monthly fees and security are required.