[L-R: Chai Kien Poon, Country Head, Funding Societies Malaysia; and Ming-Tsung Chang, Managing Director, Chailease Berjaya Credit Sdn. Bhd]
KUALA LUMPUR, 11 July 2023 - Funding Societies, Southeast Asia’s largest unified small and medium enterprise (SME) digital finance platform, has signed an agreement with Chailease Berjaya Credit Sdn Bhd, Berjaya Corp Berhad’s associated non-bank financial institution with Chailease Holding Co. Ltd. The agreement aims to provide financing to 1,500 used car dealers (UCDs) registered with Chailease Berjaya. Under this partnership, eligible UCDs can apply for financing to facilitate the purchase of dealership floor stock and offer value-added hire-purchase solutions to their customers.
The used car market in Malaysia was valued at USD25 billion (RM112 billion) in 2021, and it is predicted to grow by 40% to USD35 billion (RM156 billion) by 2027. This growth is fueled by several factors, including consumers seeking to optimise their finances and concerns over crowded public transportation systems following the pandemic. Additionally, many Malaysians are exploring opportunities outside urban hotspots or relocating away from the Klang Valley, making affordable private vehicle ownership a necessity.
Chai Kien Poon, Country Head, Funding Societies Malaysia, remarked, “As we move beyond the pandemic and enter a phase of recovery, our partnership with Chailease Berjaya Credit enables us to grow our UCD portfolio and serve creditworthy, underserved dealerships within Chailease Berjaya Credit's network. This collaboration provides these dealerships with accessible credit lines to support their operations and seize growth prospects.”
“SMEs continue to face significant challenges when it comes to accessing credit. Through our partnership with Funding Societies, we aim to address this issue by expanding credit access to small and medium-sized car dealerships. These dealerships face ever-changing market demands, and we believe that by enabling them to acquire inventory and offer consumer financing options, we can contribute to a stronger ecosystem and enhance cash flow for both dealerships and their customers,” said Ming-Tsung Chang, Managing Director, Chailease Berjaya Credit Sdn. Bhd.
Under the financing partnership, UCDs have the opportunity to secure dealer financing for up to 85% of their motor vehicle inventory purchases. The financing period spans up to 90 days from the disbursement date, and the application process is straightforward - UCDs only need to submit 2 sets of documents, identity documents (directors and company) and bank statements to apply for financing up to RM500,000.
To be eligible for dealer financing under this partnership, UCDs must meet the following requirements:
Registered with the Companies Commission of Malaysia (SSM) as one of the following: a sole proprietorship, a partnership, a private limited company (not a subsidiary of listed companies), or an unlisted public limited company with at least 30% Malaysian ownership;
Have been in operation for at least 1 year; and
Have a minimum annual revenue of RM500,000.
With more than 50% market share in Malaysia, Funding Societies leads the SME digital financing industry via their tailored financing solutions befitting the varied business needs of SMEs. With a fully online onboarding process, the platform addresses typical challenges faced by SMEs when obtaining financing solutions including collateral requirements, physical documentation submission and lengthy processes. In Malaysia, the platform has reached more than RM2 billion in total financing disbursement as of June 2023, including RM1 billion disbursement under dealer financing. For more information on the partnership, or to know more about Funding Societies’ dealer financing solution, please visit https://fundingsocieties.com.my/dealer-financing.
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Funding Societies is a SME Digital Financing Platform registered with Securities Commission Malaysia. It does not fall under the jurisdiction of Bank Negara Malaysia. Therefore, financing products of Funding Societies should not be constructed as business loan, SME loan, micro loan, term loan or any other loans offered by banks in Malaysia and it is to be deemed as an investment note as defined in the Guidelines on Recognised Markets.
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