Credit Guarantee Corporation Malaysia Berhad (CGC Malaysia) and AmBank is pleased to introduce the SME Biz Property Extra, a financing solution which is aimed at assisting qualified SMEs on property purchasing (asset financing) as well as to gain access to higher margin of financing in funding their working capital requirement (working capital financing) by using the same collateral.
The SME Biz Property Extra is positioned as a partially secured financing package that comes with 70% of CGC’s portfolio guarantee (PG) coverage. With CGC’s guarantee, AmBank SME Banking is able to provide applicants with higher term loan facilities and faster financing approval.
“This strategic partnership provides the opportunity for SMEs to access higher margin of financing which is a unique collaboration between AmBank and CGC and it is the first of its kind in the market,” said Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer of AmBank Group.
“With greater margin of financing of up to 148% and high working capital limit of up to RM3 million, we are optimistic that this product will be able to reach a broader segment of the SME community in the country,” added Jade Lee, Managing Director, Retail Banking, AmBank (M) Berhad.
AmBank SME Banking has allocated an initial portfolio size worth RM100 million to reach out to all eligible SME customers for this product. Since January 2015, AmBank Group has commenced seven (7) tranches of Portfolio Guarantees (PGs) with CGC totalling RM1.35 billion, of which RM750 million is under SME Banking sector. The fund size surpasses AmBank SME Banking’s initial target of RM550 million for FY17.
“It has been a very successful collaboration with CGC and we will continue to develop more attractive financing facilities with CGC to grow the SME community,” added David Yeoh, Head of SME Banking.
“We recognize the vital role of SMEs to Malaysia’s sustainable economic development. In this regard, we are committed to collaborate with AmBank to ensure that the SMEs are given the opportunity to expand their business without much difficulties in gaining access to financing,” said CGC’s President/Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak.
“I look forward to many more opportunities and successful collaboration between both AmBank and CGC to further enhance our SME outreach nationwide through timely yet effective products and services in years to come,” added Zamree.
Meanwhile, CGC’s Chief Business Officer Leong Weng Choong said: “The PG scheme has proven to be a success, not only in serving our business partner’s needs, but also for their customers with certainty in approval which is almost 100% due to the efficiency of the process as well as hassle-free online application submission and approvals.”
Present at the Launch of SME Biz Property Extra were Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer of AmBank Group, Datuk Mohd Zamree Mohd Ishak, President / Chief Executive Officer of CGC, Jade Lee, Managing Director, Retail Banking, AmBank (M) Berhad, CGC’s Chief Business Officer, Leong Weng Choong and David Yeoh, Head of SME Banking, AmBank, along with the senior management from AmBank and CGC.
The SME Biz Property Extra is opened for applications at all 175 AmBank’s branches nationwide.