A comprehensive financial product and service for vendors

As an OEM (own equipment manufacturer) or a service provider to GLCs, MNCs and large corporations, your business health in the long term depends on the competitive value, duration and depth of contractual relationship with the buyer of your products or services. An important consideration in sustaining your business growth as a contractor, vendor or supplier/distributor of products or services to buyers is the stability of the buyer-seller relationships which leads to structured growth in product, service and business development. However, in order to retain these business relationships and offer competitive pricing and services, there is the constant needs to value add your offerings, upgrade equipment, improve the speed of delivery, employ new skills and generally manage a growing business efficiently and effectively.

Whether or not you are a main or a sub-contractor to these large buyers of products and services, there is the continuous need to not only access financial support to fund your capacity building, but there is also the urgency to evolve your business from downstream to more sophisticated capabilities along domestic and global procurement chains to continue to operate and grow.

As one of the key thrusts of the Ninth Malaysia Plan is to move the economy up the value chain and strengthen the country’s implementation capacity to remain globally competitive as a trading nation, the SME Procurement fast tracks access to financing and business development support for the Malaysian vendor.

SME Classification	Small	Medium
SME Profile	Vendor/Contractor in manufacture of components, materials and services to GLCs and MNCs (Manufacturing and Manufacturing-Related Services, selected services and priority growth sectors under the Ninth Malaysia Plan). Sub-Vendor/Contractor to Main Vendor/Contractor in above sectors and industries. Selected services and priority growth sectors and industries as outlined under the Ninth Malaysia Plan. Credentialed and experienced entrepreneur and service provider. Applies to all SME classifications except Micros (Annual turnover of less than RM200,000 for the services sector and RM250,000 for the manufacturing sector).
Eligibility	Viable businesses with high growth opportunities in local and international markets. Vendors with letter of appointment / intent / award by contract awarder. Viable businesses with strong product/services but experiencing growth issues. Vendors with access to ready market (MNC,GLC or other domestic buyers) Vendor developmental projects in priority or target growth sectors.

The SME Procurement is unique in that it focuses on your special needs as a vendor. While the product is not targeted to start-ups and new businesses (as the SME Start-Up may be a more appropriate product for you), a contract is sufficient for us to proceed with the assessment of your application. In line with the Ninth Malaysian Plan, our objective is to promote the development of homegrown regional/global suppliers to the international market. However, to support your business along this developmental route, the SME Bank and its network of partners will coordinate efforts to ensure that sufficient funds and business advisory support is extended to Malaysian vendors.

Special Funds

In addition, we may also be able to match your business development requirements with the appropriate dedicated funds or programmes which are being channeled through the SME Bank. The main criteria are the duration and stability of your business relationship with local and international buyers. Depending on the business stage at which funding and business development interest is registered, you may also be eligible for the SME Global which has been designed to promote the export-oriented activities of Malaysian companies. Again, our officers will be able to direct you to our other products on application.

SME Classification	Small	Medium
Type of Financing	Conventional and Islamic	Conventional and Islamic
Facilities	Term Loan Revolving Loan IHP / Leasing BG / Letter of Credit Factoring Loan Stock	Term Loan Revolving Loan IHP / Leasing BG / Letter of Credit Factoring Loan Stock
Limit of Financing	Up to RM15 million	Up to RM50 million (subject to single customer limit)
Interest Rates	Competitive rates subject to terms of funds and risk ratings where applicable
Tenure	Up to a maximum of 15 years subject to assets financed Working capital up to 5 years, subject to annual review Up to a maximum of 3 years grace period
Method of Repayment	Monthly, Quarterly, Fixed or contract terms
Processing Fee	0.25% of approved loan

The Support Services

To ensure that your business growth path as a vendor is effectively managed, the SME Bank will route you to the appropriate expert or service provider at point of application. Chances are, you may have a strong product or service capabilities but you may need support in other aspects of business and/or operational management. In addition to financing your capacity-building requirements, the SME Bank is also developing and sourcing industry expertise and business advisory services with our network of partners and service providers to help you evolve your business model as you respond to national and international procurement demand.

As a financial services institution, the delivery of these integrated SME services requires the participation and commitment of a large network of national partners and service providers. The following are the business development services which the SME Bank and its network of partners offer.

SME Classification	Small	Medium
Business Advisory	Business Plan Evaluation Business / Service Expertise Industry Expertise Technical Expertise Financial Analysis Market Opportunity Identification Performance Review / Growth Monitoring Business Rehabilitation / Recovery	Business Plan Evaluation Business / Service Expertise Industry Expertise Technical Expertise Financial Analysis Intellectual Property and Trademark Protection Market Opportunity Identification Product / Service Certification Packaging and Visual Identity Design Branding and Marketing Management Performance Review / Growth Monitoring Business Rehabilitation / Recovery
Entrepreneurial Development	KKB Programmes Prototyping with strategic partners Joint Promotions	Graduation to SME Global Joint Promotions
Knowledge Sharing	International Industry / Market Research Government/Non-Government SME export and global support programmes Business Matching Opportunities

 Note: Terms and conditions are subject to review and changes by the Bank