• Contract Financing Scheme is a financing package based on product bundling concept of financing facilities which are already available in the Bank
  • The Scheme offers financing to customers who are Main Contractors or Nominated Sub-Contractors having secured contract(s) from approved awarding parties mainly government ministries, department and agencies

Mechanics of Financing

  • Providing loan facilities to fund the implementation of contract(s) until full completion.
  • The funding mechanism works by assigning the contract payments to the awarded parties direct from the Bank.
  • Financing is offered on a pre-implementation or post-completion basis, or a combination of both.

Types of Contract

  • Supply direct supply contract or contract with added value in the form of installation, testing, commissioning, training, etc.
  • Construction and infrastructure projects including works in civil, mechanical, electrical and information & communication technology.
  • Other business services contract such as providing services and maintenance.

Eligibility Criteria

  • Applicant must be the Main Contractor or Nominated Sub-Contractor
  • Applicant must be registered with either of the following
    • Ministry of Finance (MOF)
    • Contractor Service Centre (PKK)
    • Construction Industry Development Board (CIDB)
    • Other relevant licensing or registration bodies

Financing Concept

Pre-implementation financing Normally comprising of guarantees as provided for and required for the contract, as well as working capital financing to facilitate the completion of the contract.
Post-completion financing Based on invoices already submitted to awarding parties or progress claims duly certified by the awarding parties

Margin of Financing

  • SME Bank may finance up to 100% of the contract value.

Financing Limit

  • The financing limit for fund-based facilities (excluding Guarantees) is guided by the highest deficit position from the contract’s projected cash flow.

For further inquiries, please visit our nearest Enterprise Centre / Business Centre.


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