PETALING JAYA : Alliance Bank Malaysia Bhd today signed a Memorandum of Understanding (MoU) with SOLV Malaysia to broaden reach to assist Malaysian micro, small and medium enterprises (MSME) accelerate growth via a business-to-business supply chain financing programme.
Alliance Bank is the pioneer to provide invoice financing to MSME on SOLV’s platform to facilitate their cash flow and fund purchases from manufacturers and distributors without the need of going to a physical bank branch. The seamless access to digital financial services will help address liquidity challenges to MSME who are tech savvy.
MSME within the supply chain on SOLV can obtain invoice financing of up to RM200,000 through the Bank’s Digital SME Trust Receipt Facility and enjoy fast approvals within as early as two working days using only one document being their past six months bank statement.
This will enable MSME to manage their working capital more effectively and increase inventory levels to seize business opportunities. The partnership aims to broaden access to credit facilities using alternative data points through the platform.
“The Bank’s MSME Business Outlook 2023 – Malaysia report published in February this year revealed that MSME face various challenges such as limited access to capital and difficulties navigating complex financial regulations. We understand their different challenges and want to help them succeed due to their vital role in growing the Malaysian economy by providing them with access to key support structures that extend to the entire supply chain. We tailor our customer-centric solutions to meet MSME needs. This alliance with SOLV is also in line with the Bank’s refreshed strategy, Acceler8, to leverage partnerships to continue our velocity in the SME segment,” said Alliance Bank' s Group Chief SME & Commercial Banking Officer, Raymond Chui in a press statement.
The MoU paves the way for SOLV’s MSME to obtain financing based on their account receivables from large corporate buyers, or “anchors”, providing them with working capital. The anchor-led financing will help MSME cultivate creditworthiness behaviour and build credit profiles, facilitating the access to financing on their own merit in the future.
“SC Ventures has incubated SOLV in Malaysia to support our clients who are increasingly looking for new solutions to address their e-commerce and financial needs for greater efficiency and growth within the small and medium-sized enterprise community. Ultimately, we want to combine new technologies and innovation to help transform businesses and enable growth to help them succeed,” said SOLV Malaysia’s Venture Lead, Wendy Ang.
Under the Acceler8 strategy, Alliance Bank focuses on continuous digital transformation and offers innovative solutions that are fast and personalised to meet the evolving needs of customers. Alliance Bank’s initiatives such as the BizSmart® Solution Portal, #SupportLokal and BeESG provide businesses with broad suite of financial and non-financial solutions to support them throughout their life cycle including SMEs that are transitioning towards more sustainable business practices.
