SMEs can now seek financing from MFA


KUALA LUMPUR: Micro, small and medium enterprises (SMEs) facing cash flow problems can seek alternative financing from a RM5bil fund offered by 25 registered financiers under the Malaysian Factors Association (MFA).

The RM5bil factoring allocation, which was announced after MFA’s 37th annual general meeting yesterday, will be offered to qualified companies for the new term from 2023 to 2024.

MFA president Mohamed Fahmi Mohamed Ilyas said the new allocation was an increase from RM3bil in financing that had assisted over 3,500 SMEs as of June.

“Access to financing has become harder as mainstream financial institutions get more stringent while approving loans.

“SMEs, especially, have to show proof of a strong business performance to apply for more funding.

“This is where MFA comes in as a financing alternative for the SMEs, providing them with factoring, invoice purchase or financial counselling when needed.

“Such services will help smoothen SMEs’ cash flow and pump in more capital to fulfil contracts they’ve secured,” he said yesterday.

Founded in 1986, MFA is a non-profit trade association representing Malaysia’s factoring industry with members comprising private factoring firms, licensed money lenders and financial institutions. Factoring is where a factoring company advances cash for a fee to an SME against its receivables finance or unpaid invoices while it awaits payment from the customer.

It is suitable for new start-ups with no track record and credentials to qualify them for the bank facility.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Nation

Five-year-old girl in fatal fall from JB condo
Copter tragedy: Cops probing X user for disparaging comments on crash
More arrests to follow in false claims probe involving MB's son, says MACC chief
Former TV host Norjuma charged in four different courts with causing hurt, property damage
EPF Account 3: Most Malaysians appreciate option while others don't wish to touch savings
KKB by-election: EC advice to potential candidates
Defenceless senior citizen gets chilli sauce in face, badly beaten by robber
New mention date set for accused in boyfriend murder case
Copter tragedy: Form an RCI to investigate crash, says Lam Thye
Casino licence for Forest City a 'lie', says Anwar

Others Also Read