SME Contract Financing-i

For SMEs to access financing for the purpose of acquiring and/or completing contracts.

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Eligibility

  • For Private Limited Companies (Sdn. Bhd.), Sole-Proprietorship, and Partnership that fall within SME definition.
  • Business must have at least two (2) years of performance track record in undertaking supply, business services, construction, and other general services contracts.
  • Registered with the Companies Commission of Malaysia (SSM), or respective authorities / district offices in Sabah and Sarawak.
  • Malaysians residing in Malaysia that hold a minimum of 51% shareholding / ownership in the business.
  • Business must have an average turnover of more than RM2.0 million over the past 2 financial years and fulfil the following criteria:

    • Main Contractors / Nominated Sub-Contractors / Vendors / Suppliers
    • Registered with the Ministry of Finance, Contractor Service Centre (PKK), or other relevant licensing / certification bodies.

Purpose of Financing

To finance Working Capital Requirements (WCR) and Capital Expenditure (CAPEX*)

*For contract related purposes.

Financing Amount

Sdn. Bhd.:

  • Min: RM1 million
  • Max: RM15 million

Sole-Proprietorship / Partnership:

  • Min: RM500,000
  • Max: RM2.5 million

Financing Rate

  • Attractive financing rates

Financing Tenure

Collateral/Security

  • 1st/ 3rd party charge over cash deposit
  • Support letter:
    • Surat Ikatan Penyerahan Hak & Surat Persetujuan Kerajaan Kepada Surat Ikatan Penyerahan Hak berserta Lampiran E
    • Irrevocable Letter of Instruction (ILI); or
    • Letter of Assent; or
    • Inclusion of Instruction to Pay (ITP)
  • Private Limited Company (Sdn Bhd):
    Joint and several guarantee (JSG) by the following individual:
    • Directors of the company;
    • Shareholders holding more than thirty percent (30%) of the share capital;
    • Key man/person regardless of the shareholdings and directorship
  • Corporate Guarantor holding more than 50% of the share capital of the customert
  • Partnership: Letter of Indemnity/ Undertaking, whichever is applicable
  • Submission of Letter of Undertaking
  • Guarantee by Syarikat Jaminan Pembiayaan Perniagaan (SJPP): Up to 80% guarantee coverage by SJPP

Fees & Charges

No.

Fee Type

Charges
1 Stamp Duty Actual Cost – As per Stamp Duty Act 1949 (Revised 1989):

  1. Principal Agreement – Ad Valorem of 0.5% of financing amount
  2. Secondary / Supplementary Agreement – Nominal of RM10 of each document
2 Legal Fees Actual Cost
3 Processing Fee Waived
4 Tawarruq Agency Fee RM50 (RM25 of each ABPA and ABSA)



Note: Tawarruq Agency fee costs RM50.00 for every Tawarruq transaction.
5 Late Payment Charges Late payment charges (LPC) are as per BNM’s latest Guidelines on Late Payment Charges for Islamic Banking Institutions as well as Bank Islam Ta’widh clause.
6 Cancellation Fee Based on actual cost (if any) for the preparation and registration of security documents that has been incurred by the Bank in connection with the facility including all expenses incurred during the claim process.

Type of Contract

Awarded contracts must be evidenced by Letter of Intent, Letter of Award, Contract Document from Awarder, for any of the following:

  • Direct Supply
  • Direct Supply with value added
  • Supply, Installation & Commissioning, Testing, Commissioning, Training, etc.
  • Business Services
  • Construction
  • Infrastructure
  • Or any other contracts deemed acceptable by the Bank
Product Disclosure Sheet:
  • Click here to view Product Disclosure Sheet – English Version
  • Click here for view Product Disclosure Sheet – Bahasa Malaysia Version

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