Kuala Lumpur, 13 March – Alliance Bank Malaysia Berhad (Alliance Bank) today signed an agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to provide easier access to financing for small and medium enterprises (SMEs) on a portfolio guarantee basis.
Starting with an initial tranche size of RM50 million, the portfolio guarantee aims to assist the small businesses by providing loans for working capital as well as asset acquisition. CGC, a leading credit guarantee provider in the country, will be providing 70% guarantee cover of the approved total principal amount undertaken by SMEs and will assist to verify the credibility of the applicants in consultation with Alliance Bank.
The minimum loan quantum under this portfolio guarantee is RM100,000 and the maximum RM300,000 per SME customer at a fixed loan tenor of five years. Applications may be made at any Alliance Bank branch nationwide.
“Based on our interaction with the SME community, we understand that in a competitive business environment, timing is vital to any SME. Businesses have to continuously evolve and adapt to the ever changing business demands and can no longer delay the implementation of their business plans. The launch of this portfolio guarantee scheme is to help the smaller businesses gain Quick, Easy and Convenient financial assistance to grow their businesses,”” explained Steve Miller, Head of Business Banking, Alliance Bank.
“Having witnessed the success of our first portfolio guarantee with CGC via our Small Biz Express Scheme, we felt it is timely to enhance the programme and explore its potential to serve the SME community better,” said Miller.
“The SME segment remains a core focus for Alliance Bank and we take great initiatives in providing SMEs with the necessary support needed to growth their businesses. In line with our vision to be “”The Best SME Bank in Malaysia”, the Bank has further enhanced our relationship management model and has recently introduced innovative financial products for the SME segment such as the MyBusiness Platinum Card and the BizSmart Onling Banking. In addition to the Bank’s complete suite of product offerings for businesses of all sizes, exclusive business seminars have been scheduled for Alliance Bank SME customers to continuously assist them in growing their businesses to greater heights.” Miller further elaborated.
“CGC has always been committed towards innovation not only in enhancing access to financing but also in addressing the main issues faced by these SMEs who generally lack collaterals and credit track record, “”said CGC’s Managing Director Datuk Wan Azhar Wan Ahmad. “The portfolio guarantee scheme essentially provides these SMEs an avenue to strengthen their credit worthiness and also build a credible track record which in the longer term would enable them to negotiate for larger facilities on a favorable term.”
“With pre-determined eligibility criteria, CGC has been able to provide approvals within three days upon receipt of the application from the participating financial institutions. The current approval rate is almost 90%, which is relatively higher compared with our other schemes due to the efficiency of the process flow,”” said Datuk Wan Azhar .
“With Alliance Bank on board, we are looking forward to leveraging on their SME experience and wider network to further enhance and speed up SME’s access to financing,”” added Datuk Wan Azhar.
He further explained that about 2,700 SMEs have benefitted from CGC’s strategic partnership on portfolio guarantee with five financial institutions since 2009.
“With five financial institutions already on board, we are optimistic that there will be keen interest now from other financial institutions on our portfolio guarantee resulting in greater access to financing for the viable and deserving SMEs,” added Datuk Wan Azhar.
SMEs wishing to gain more information on the portfolio guarantee may call CGC’s Client Service Centre at 03-78800088 or Alliance Bank’s Customer Service Centre at 03-5516 9988, or visit the nearest Alliance Bank’s branch.
About Alliance Bank Malaysia Berhad
Alliance Bank Malaysia Berhad is a dynamic, integrated banking group offering end-to-end banking and financial solutions through its consumer banking, business banking, Islamic banking, investment banking and stock broking businesses as well as unit trust and asset management, having served the financial community over the past five decades.
The banking group is involved in the provision of financial services through its principal subsidiaries, Alliance Bank Malaysia Berhad, Alliance Investment Bank Berhad, Alliance Investment Management Berhad and Alliance Islamic Bank Berhad. It provides easy access to its broad base of customers throughout the country via multi-pronged delivery channels which include retail branches, Privilege Banking Centres, Islamic Banking Centres, Business Centres, Investment Bank branches, direct marketing offices and unit trust agent offices located nationwide, as well as mobile and Internet banking.
About CGC
Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and commercial banks. The core business focus of CGC is to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has cumulatively guaranteed more than 420,000 loans valued at close to RM51 billion since its establishment.
For media enquiries:
| V. Kumaran Head, Corporate Communications , CGC Tel: 03-7806 2300 ext 232 HP: 016-638-1747 Email: [email protected] |
Ms. Agnes Ong Assistant Vice President Group Communications Alliance Bank Malaysia Berhad Tel: 03-2604-3378 / 012-672-4245 Email: [email protected] |
”