KUALA LUMPUR: Hong Leong Bank Bhd (HLBB) is offering clean working capital financing of up to RM5mil to local small and medium enterprise (SME) motorcycle and scooter dealers.
HLBB had inked a memorandum of understanding (MoU) with Malaysia Motorcycle & Scooter Dealers Association (MMSDA) to provide a comprehensive suite of banking solutions for its 6,000 members.
Apart from the working capital financing offered, the tailor-made financial programme, Motorcycle Dealers Programme (MDP), includes individual and business banking requirements such as auto loan packages, cash management, payments and merchants services, foreign exchange service as well as digital business solutions.
Speaking after the signing ceremony on Tuesday, HLBB group managing director and CEO Domenic Fuda (pic) said the bank’s MDP portfolio has grown threefold in the past 18 months following the engagement with MMSDA and delivering financial solutions that meet the members’ needs.
“We simply cannot provide a one-size fits all solution to SMEs as they operate in different industries and market segments and serve their customers differently and face different challenges and needs for business growth.
“We listen to their needs and deliver financial solutions that meet their requirements for business growth,” he said.
To date, some RM350mil has been disbursed via MDP.
According to the Malaysian Association of Motorcycles Manufacturers, market dynamics have largely been positive since 2016 and the motorcycle and scooter industry is expected to witness continuous growth over the next five years with a projected 25% increase over the period.
The MDP marks the first specialised SME loan programme by HLBB.
HLBB head of SME banking Terrence Teoh highlighted that one of the challenges faced by the motorcycle and scooter dealers was the hassle of SME loan approval process.
“Working capital is always a concern for the SME segment. As a bank with strong entrepreneurial roots, we understand the need for supportive financial arrangements to support entrepreneurs’ in their quest of business growth opportunities.”