Sri Lanka SMEs get financing from Malaysian firm
COLOMBO (EconomyNext) – SME Factors Sdn Bhd, a Malaysian receivables financing house, has entered into a partnership with SME Factors Lanka Ltd. aimed at expanding the island’s small and medium enterprise sector.
SME Factors Malaysia (SMEF) will make an initial investment in the range of 100 million ringit, a statement said.
It will replicate its Malaysian business model, focusing on financing SME contractors and suppliers and help in growing their businesses.
In receivables financing, small firms suffering from late payment either sell their invoices or use them as collateral to borrow.
"SMEF’s receivables financing provides fast and convenient cash solutions for businesses by unlocking the value of accounts receivables," the statement said.
"The Malaysian company will initiate the receivables financing industry in Sri Lanka and help the local entrepreneurs in running their business effectively."
SME Factors says it will work with local agencies to find potential SME firms to provide non-collateral loans and also adopt a much speedier loan approval process.
SME Factors Sdn Bhd has provided financing facilities to over 8,000 SMEs in Malaysia and has also received strong support from the Malaysian Government.