PETALING JAYA: SME Factors Sdn Bhd, a company specialising in receivables financing by providing cash flow solutions to the small and medium enterprises (SMEs),will be expanding its product reach to the private sector by the second half of the year.
SME Factors Managing Director Syed Zed Al Qudsy said the company currently has a strategic collaboration with Malaysia Building Society Berhad (MBSB) to disburse a total of RM500 million in financing backed by MBSB to SME COD tractors servicing the Government and Government-linked companies (GLCs). SME Factors and MBSB for malised their partnership earlier this month on 7 Jan.
"By mid-2011 we expect to extend similar facilities to SME contractors dealing with private corporations as well.We are currently in talks with a number of financial institutions and we should be able to announce the partnership in the few months," Syed Zed told a media briefing at his office here yesterday. SME Factors provides cash now solutions and financing to SMEs of all types, industries and sizes, from start-ups right to multi-million ringgit companies.
What makes SME Factors unique from other players, says Syed Zed,is its ability to mitigate and assess risks while at the same time being fast, efficient and effective. Its promise to customers is a 5-calendar- day approval. "The most crucial pa rt in providing financing to SMEs is risk management. We perform detailed assessment, evaluation and verification on each client's documentations, procurement process and their delivery and acceptance before a transaction is approved; explained Syed Zed.
"By doing so,we help protect our and our partners' interests, using proven policies and procedures. With an extensive background in the Government contractor business ourselves previously, we are very familiar with the procurement processes and thus able to give our clients the best advice," he added.
Its vast experience also enables SME Factors to identify the opportunities that lie within the SME businesses especially in relation to the supply and procurement requirements set by the Government and GLCs.
"The Government has allocated in excess of RM30 billion worth of development budget under the Tenth Malaysia Plan (10MP) and the Economic Transformation Programme (ETP). Both programmes which involve the Government,GLCs and large private entities will definitely filter down benefits to the local SME industry. There are abundant opportunities in the SME industry; it's a matter of identifying rhe viable ones and keeping the risks low", he said.
Syed Zed said: "SME Factors' aspiration is to help Malaysia develop a robust and vibrant SME community and in the process contribute towards overall economic growth having full understanding of them any dilemmas and predicaments faced by SMEs, we look forward to sharing our experience and expertise to help the SME sector grow stronger towards becoming one of the nation's key economic pillars."
Source: New Sarawak Tribune, 26th January 2011
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