- 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.
- 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
|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.
- 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.