MAYBANK ISLAMIC OFFERS CASH FLOW FUNDING FACILITY TO SMES TO TIDE OVER COVID-19

KUALA LUMPUR, March 8  -- Maybank Islamic Bhd has introduced a funding facility called Skim Cakna for Small and Medium Enterprises (SMEs) to assist their cash flows during the current pandemic.

The scheme is open to companies that have been awarded or are to be awarded with supply and services contracts by the government in 2021, with the contracts restricted to those awarded via the government’s e-procurement system.

"The applications can also be made for ongoing contracts if those contracts are free from encumbrances and not been assigned to other financial institutions.

"Skim Cakna is part of Maybank’s ongoing commitment to support customers overcome the financial challenges during these unprecedented times, as well as provide them with speedy access to funding," it said in a statement Monday.

The programme will serve as an alternative source of funding to support the cash flow needs of SMEs, as well as for their working capital by receiving early payment of their receivables without waiting for payment from the government, it said.

Maybank Islamic is one of the four participating Islamic banks, which have been selected to participate in this programme, making early payments to the companies based on the government’s creditworthiness.

For the companies, they will enjoy competitive pricing based on the credit standing of the government, with no requirement for credit assessment on their part. 

In principal, the programme involves transfer of rights, title and interest, of receivables over specific invoices on a limited recourse basis. The funding margin will be up to 100 per cent of confirmed value of invoice to be paid by the government, and no collateral is required.

The scheme was launched on March 1, 2021 and will be available for a one-year period.

Applications can be made at 13 Maybank’s Transaction Banking Centres nationwide or via emailing to cakna@maybank.com.

-- BERNAMA