Vendor Financing Program/Contract Financing – SME
The objective of a Vendor Financing Program (VFP) or Contract Financing for small and medium-sized enterprises (SMEs) is to provide financial support and flexibility to SMEs in fulfilling contracts or purchase orders from their customers or clients. This financing option allows SMEs to bridge the gap between the delivery of goods or services and the receipt of payment from their customers.
Purpose Of Financing
- Contract financing – TNB, PETRONAS, General Awarder
Tenor
- MCash (invoice) – Renewable every year for a maximum period of three (3) years, or upon completion of the contract, whichever is earlier.
- LC / BG – As per Letter of Award / Work Order from Awarder
Financing Size
- Value / Size of the project reasonably within the mean and capacity of the customer to undertake.
Margin of Financing
- MCash (Post Financing)
- Up to 80% of claims invoice / purchase order (PO) amount.
- MCash/ LC (Pre Financing)
- Up to 100% of suppliers invoice amount.
- Total disbursement (accumulated) is restricted up to 80% of contract value.
Profit Margin
- MCash (invoice) – average rating is BFR + 2%.
- LC – Minimum commission of 0.1% per month.
- BG – Minimum commission of 0.125% per month (min.RM200).
Eligibility Criteria
- Valid Letter of Award or Contract
- Under minimum performance rating
Type of Facilities
- MCash (Invoice)
- Letter of Credit (LC)
- Bank Guarantee (BG)
Guarantee Fee
- Up to 70% Guarantee* cover by Skim Jaminan Pembiayaan Perniagaan (SJPP)
- Joint & Several Guarantee by directors
- Assignment of payment proceed from contract awarder to the Bank.
- Marginal deposit
- Sinking fund
