Vendor Financing Program/Contract Financing – SME

The objective of a Vendor Financing Program (VFP) or Contract Financing for small and medium-sized enterprises (SMEs) is to provide financial support and flexibility to SMEs in fulfilling contracts or purchase orders from their customers or clients. This financing option allows SMEs to bridge the gap between the delivery of goods or services and the receipt of payment from their customers.

  • Tenaga Nasional Berhad (TNB)
  • General Awarder (Government / GLIC / GLC)


Purpose Of Financing

  • Contract financing – TNB, PETRONAS, General Awarder


  • MCash (invoice) – Renewable every year for a maximum period of three (3) years, or upon completion of the contract, whichever is earlier.
  • LC / BG – As per Letter of Award / Work Order from Awarder

Financing Size

  • Value / Size of the project reasonably within the mean and capacity of the customer to undertake.

Margin of Financing

  • MCash (Post Financing)
    • Up to 80% of claims invoice / purchase order (PO) amount.
  • MCash/ LC (Pre Financing)

    • Up to 100% of suppliers invoice amount.
    • Total disbursement (accumulated) is restricted up to 80% of contract value.

Profit Margin

  • MCash (invoice) – average rating is BFR + 2%.
  • LC – Minimum commission of 0.1% per month.
  • BG – Minimum commission of 0.125% per month (min.RM200).

Eligibility Criteria

  • Valid Letter of Award or Contract
  • Under minimum performance rating

Type of Facilities

  • MCash (Invoice)
  • Letter of Credit (LC)
  • Bank Guarantee (BG)

Guarantee Fee

  • Up to 70% Guarantee* cover by Skim Jaminan Pembiayaan Perniagaan (SJPP)
  • Joint & Several Guarantee by directors
  • Assignment of payment proceed from contract awarder to the Bank.
  • Marginal deposit
  • Sinking fund

You might also be interested in

SJPP Teraju Bumiputera Healthcare – SME
Penjana Tourism Financing – SME
Commercial Property Financing – SME
Chat with us on
AUSTRALIAN DOLLARAUD3.2220003.0680003.052000
BRUNEI DOLLARBND3.5880003.4300003.419000
CANADIAN DOLLARCAD3.4900003.3650003.348000
SWISS FRANCCHF5.3860005.1520005.134000
EURO EUR5.2560004.9640004.942000
STERLING POUNDGBP6.1770005.9220005.913000
NEW ZEALAND DOLLARNZD3.0580002.8390002.824000
SINGAPORE DOLLARSGD3.5880003.4440003.443000
UNITED STATES DOLLARUSD4.8430004.5910004.574000

2024-06-13 08:48:21