Kuala Lumpur, 2022 – Commerze Capital Sdn. Bhd. (Commerze Capital) responded to the government's call for the empowerment of small and medium enterprises (SMEs) by launching the BANGKIT SME campaign on April 1, 2022, which will last for three months. The campaign aims to provide two financial facilities, such as factoring (invoice financing) and financial advisory services, for SMEs affected by COVID-19.

Commerze Capital Chief Executive Officer, Haji Shahrom Latif, said, “This campaign is an initiative organized by Commerze Capital in an effort to help revive the country's economy, in line with the Malaysian government's call for SME empowerment. The company is committed to helping SMEs restore and streamline business cash flow as well as grow their businesses sustainably.” The campaign is specially designed for suppliers, vendors, and contractors to governments, GLCs, and companies listed on Bursa Malaysia.

Factoring is able to smooth cash flow

Globally, factoring-based financing has existed for thousands of years, as early as the days of the ancient civilization of the Roman empire. The concept of factoring was widely used in the 1950s in western countries and has also been adopted by financial institutions such as banks and licensed factoring companies in Malaysia.

Factoring, also known as invoice financing, is one of the financing mechanisms, especially for businesses that sell their products or services on credit. Businesses that sell on credit can use their customers' indebtedness to get cash advances from factoring facilities while waiting for payment from those customers. For this BANGKIT SME campaign, the main target is contract-based SME businesses, where invoices that have not yet been paid by business customers can be used as collateral for financing. The factoring facility of this company is 100% shariah compliant by using the Shariah structure of Tawarruq and Hawalah (debt exchange for commodities).

Financial advisory services provide access to financing

Financial advisory services are consulting services to assist SMEs to obtain additional capital injections through financing from mainstream financial institutions such as commercial banks or government-owned banks. Through this financial advisory service, SMEs will be given guidance, especially in the application aspect, as well as access to business financing.

Commerze Capital is a Bumiputera-owned finance company that has been operating since 2007 after obtaining approval from Bank Negara Malaysia to carry out financial services such as factoring, leasing, and building credit. The company was also given approval from the Ministry of Finance to factor in invoices for government-issued contracts.

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