Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
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<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>Purpose Product Usage Features Benefitsworking capitalrequirements.• Allow customers tohave access to fundsespecially where BGis issued <strong>for</strong> advancepayment or releaseof retention fundsunder contracts.changed basedon the amount andperiod of theguarantee.• Maximum period ofguarantee isguided by the rulesof the Associationof Banks in<strong>Malaysia</strong> i.e.guarantee shouldnot be issued <strong>for</strong>more than 1 yearexcept <strong>for</strong>Governmentcontracts. Theexpiry of theguarantee must notbe more than 12months after theexpiry of theoriginal contract.compliance of all termsspecified in the relevantguarantee. There areseveral types ofguarantees which canbe arranged by thefinancial institutiondepending on thespecific requirements ofthe borrower.A financial institutionmay take into account anumber of factorsbe<strong>for</strong>e issuing aguarantee, such as, theextent of liability, periodand expiry, and creditstanding of thecustomer.<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>Facilitate meeting ofproduction or contractdeadlines.• Guarantee orundertaking by theissuing financialinstitution to theshipping agent torelease the goodswithout production ofTo expedite therelease of goodswhich have arrivedbe<strong>for</strong>e the originaltransport documents.ShippingGuarantee(SG)100100chapter 7-13 p79-181 Eng.indd 1008/15/11 5:02:57 PM
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