PRESTIGE 2.0: SME Financing Scheme

PRESTIGE 2.0: SME Financing Scheme is an initiative by SME Corporation Malaysia (SME Corp. Msia) under Programme for Enhancement of Strategic Industry and High Growth Enterprise (PRESTIGE) with the objective to provide better access to financing for SMEs in High Growth strategic industries.

High growth SMEs represent a vital segment of Malaysia’s economy, driving innovation, employment, and economic diversification. This financing scheme aims to empower such SMEs to expand their operations, integrate into global supply chains and penetrate international markets.

Through this initiative, SME Corp. Malaysia has appointed Funding Societies to provide innovative financing solutions for SMEs through their financing platform.

Under the PRESTIGE 2.0 SME Financing Scheme, two main financing options are available to support your business needs:

a) Invoice Financing-i

This Shariah-compliant financing solution helps businesses:

1. Finance purchases from suppliers or cover essential business expenses.

2. Obtain early payment based on sales invoices for goods delivered or services rendered.

It is particularly beneficial for SMEs that require mobilisation capital to initiate projects or operate predominantly on credit terms with delayed payments from clients. Repayment is made as a bullet payment, covering both principal and profit, upon the due date.

b) Business Term Financing-i

An unsecured Shariah-compliant financing facility designed to support the growth and expansion of SMEs. This option offers structured monthly repayments that include both principal and profit, making it ideal for businesses seeking predictable cash flow planning.

To apply, simply click on the “Apply Now” button and submit your details. One of our sales representatives will get in touch with you within 2 working days to guide you through the next steps.

Please prepare the following documents to support your application:

• Company Registration Form
• Copy of Identity Card/Passport of all Directors
• Latest 6 months’ Bank Statements
• Latest Audited Accounts & Management Accounts (if available)
• Debtors’ and Creditors’ Aging Report / Statements of Account (if available)

Invoice Financing-i (APF-i & ARF-i):

• Facility Fee: 0.5% of the approved financing limit (one-time), with an annual renewal fee of RM1,000
  
  
• Processing Fee: 0.75% of the approved financing amount
  
  
• Profit Rate: 3% per annum
  
  

Business Term Financing-i:

• Processing Fee: 2.5% of the approved financing amount
  
  
• Profit Rate: 3% per annum
  
  

Note: No other fees or charges apply.

Late Payment Charges, consisting of Compensation (Ta’widh) and Penalty (Gharamah), will be imposed subject to the following conditions:

• For overdue payments before the Maturity Date: Compensation (Ta’widh) may be charged at a rate of 1% per annum on the overdue amount and shall not be compounded.
  
  
• For overdue payments after the Maturity Date: Compensation (Ta’widh) may be charged at a rate of 1% per annum on the outstanding balance (including overdue principal and accrued profit). Funding Societies may impose Late Payment Charges consisting of both Compensation (Ta’widh) and Penalty (Gharamah) at a maximum rate of 10% per annum.

Yes, and there are no early settlement fees or charges.

The financing uses Commodity Murabahah via Tawarruq, where Shariah-compliant commodities are bought and sold to generate cash flow, in line with Islamic financing principles.

Any Shariah-compliant business, particularly those in strategic growth sectors, such as:

• Smart Agriculture
  
  
• Aerospace
  
  
• E&E
  
  
• Medical Devices
  
  
• Halal Industry
  
  
• Tourism
  
  
• Oil & Gas
  
  
• Biotechnology
  
  

Additional requirements:

• Minimum 3 years of consistent growth
  
  
• Clear expansion or export plans
  
  
• Must be a private limited company or an unlisted public company.