Purchase financing is a short-term financing provided to customers (“Issuers”) who are in need of funding for their purchase side of supply-chains, enabling the SMEs to take advantage of early payment and volume discounts, thereby increasing their profitability as well as potentially freeing up more credit limit with their suppliers for business expansion.

It is a partially secured financing/investment product in which CGC Digital Sdn Bhd will provide up to 50% guarantee coverage for financing approved for eligible MSMEs.

Who is CGC Digital Sdn Bhd?

CGC Digital, a wholly owned subsidiary of Credit Guarantee Corporation Malaysia Berhad, was established and registered in July 2022 as the digital arm of Credit Guarantee Corporation Malaysia Berhad. Its primary goal is to empower Micro, Small, and Medium enterprises (MSMEs) by creating a simpler and more seamless financing experience in the digital ecosystem.

Please refer to CGC Digital’s website for more details: https://cgcdigital.com.my/

Financing Amount

Up to 100% of the total Invoice Amount for the eligible bundled of underlying Purchase Invoices, in denomination of RM1,000, and subject to:

• Minimum financing amount of RM 10,000
• Available Credit Limit

Financing Tenure

30 to 120 days, from date of disbursement

Disbursement

90% of Issued Note Amount with 10% retained as Reserve Amount, to be used for deduction of processing fee (including CGC fee), stamp duty, GST (if any), expense reimbursement, interest and penalty interest. The balance of reserve amount if any leftover, will be refunded to Issuer upon full settlement of the Issued Note.

Repayment Structure

Either on Bullet Repayment by maturity date or Monthly Instalment starting from Month 1

Return to Investor is derived from:

*Note:

• Interest is charged to Issuer for the principal sum of each repayment instalment from disbursement date to actual repayment date
• Pricing determined based on risk grading assigned to Issuer with investment sharing ratio of 70%/30%

The Issuers for purchase financing are subject to the same rigorous due diligence and credit assessment process.

Nonetheless, as with any investment products, you risk losing your capital when investing the Issued Notes through the Platform. The risk presents itself when the Issuers are not able to fulfil their financial obligations to the investors; may it be due to their internal management problem, or external circumstances such as changing rules and regulation, business environments, political climate and etc.

In view of this, we remind you to:

• Read our GENERAL RISK STATEMENT carefully and/or consult your professional advisers to ensure you understand the risk associated
• Practice good investment habits by investing within your financial means and affordability;