The Star
4 November 2023
RHB rolls out working-capital facility to support SMEs
Ng said the group has taken a more integrated approach in providing assistance and support to its customers.
THE RHB Banking Group aims to empower small and medium enterprises (SMEs) with working-capital financing totalling RM450mil by the end of the year through its RHB Supplier and Vendor Financing programme.
The programme, in collaboration with Syarikat Jaminan Pembiayaan Perniagaan (SJPP), is offered to Malaysian SMEs that are contracted to provide goods and services to the federal and state governments and selected government-linked companies (GLCs).
Eligible SMEs can access an exclusive offer from RHB (with the guarantee fee covered by the bank) via SJPP guarantee for a faster and more seamless financing process without having to use their property as collateral.
In addition, eligible SMEs can enjoy competitive interest/profit rates of up to 2% a year of the base lending rate (BLR) or base financing rate (BFR).
“We first launched the pilot RHB Supplier and Vendor Financing programme in March this year to SMEs in Sarawak who were awarded contracts by the state government and selected GLCs.
This has since received overwhelmingly positive feedback.
The SMEs experienced a swift and hassle-free loan application and quick fund disbursement, significantly improving their business cash flow.
“This, in turn, enabled them to tender for more projects and grow their business quickly. Building on this, we are now extending the programme to SMEs nationwide, where we aim to finance RM450mil for eligible SMEs by the end of 2023 under this initiative,” said Jeffrey Ng Eow Oo (pic), managing director of group community banking for RHB Banking Group.
The programme can provide eligible SMEs with up to RM10mil of financing. Eligible SMEs are main contractors or vendors with a minimum of two years’ track record with a government ministry or one level down sub-contractor working with approved state ministries, agencies or GLCs.
“Our programme is one of the ways we fulfill our commitment to offer customised solutions to support SME growth. At the same time, this aligns with our ambition to become an SME-specialist bank under our three-year corporate strategy of ‘Together We Progress 2024’,” added Ng. RHB Bank Bhd is inviting eligible SMEs to explore the opportunities provided by the programme. For more information, RHB’s SME customers are encouraged to consult with their relationship managers or visit the nearest RHB Bank branch.
(Web Source: https://www.thestar.com.my/business/business-news/2023/11/04/rhb-rolls-out-working-capital-facility-to-support-smes)