Wednesday, October 5, 2011

CGC, RHB Bank in tie-up for SME financing

PETALING JAYA: Credit Guarantee Corporation Bhd (CGC) and RHB Bank Bhd have formalised a strategic tie-up to further enhance the small and medium enterprises (SMEs) access to financing through it's new scheme, the Enhancer Direct.

The Enhancer Direct is a credit guarantee scheme that is designed to assist viable SMEs that are unable to secure financing due to insufficient collateral and track record, to avail of a range of banking products and services directly through CGC's branches nationwide.

CGC Managing Director, Datuk Wan Azhar Wan Ahmad said with a RM200 million portfolio, the new scheme is expected to benefit about 800-1000 SMEs across all economic sectors in Malaysia.

"The development of a healthy and resilient (SME) community requires sound financial infrastructure that offers a wide spectrum of innovative products and services," he said at the signing ceremony between CGC and RHB Bank, here on Wednesday, Oct 5.

He added these products must exemplify reliability, flexibility and competitiveness, which are the qualities that SMEs consider as they explore their financing options to further their business interest.

"Given today's fast-paced economy, having fast access to financing is an important consideration for entrepreneurs, who have to move quickly to seize available opportunities and remain competitive," he said.

As the country's leading SME credit enhancer, Wan Azhar said CGC's priority is to provide SMEs with products that promise a quick turnaround time and disbursement of funds.

"Despite the challenges, we have provided guarantee valued at RM50 billion to over 400,000 SMEs in the last 39 years.

"With today's increasing demand for SME financing, there is a need to intensify efforts to develop new and innovative products that are tailored to the specific needs of SMEs.

"Towards this, we have forged strategic alliances with various financial institutions to drive product development, and indirectly leverage on their network to improve outreach," he added. - Bernama

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