KUALA LUMPUR (Sept 23): Alliance Bank Malaysia Bhd (ABMB) has signed an agreement with Corporation Malaysia Bhd (CGC) to pave way for the growth and development of Malaysian small and medium enterprises (SMEs) by giving fast and simple financing assistance.

In a joint statement, ABMB and CGC said the former has, through this partnership, approved RM300 million in loans from previous tranches to help 750 SME businesses which employ 13,750 people.

Meanwhile, the new RM300 million tranche is expected to allow another 600 plus SMEs to grow their businesses.

CGC's Portfolio Guarantee Scheme requires minimal documentation, and CGC covers up to 70% of the principal financing amount on a portfolio basis.

According to ABMB and CGC, the financing amount is from a minimum of RM100,000 to a maximum of RM1 million per SME account, with financing tenure of up to seven years. This portfolio guarantee agreement has a tranche size of RM300 million, and forms part of the build-up to a RM1 billion portfolio with CGC by 2020.

It is also stated that ABMB can, through the Portfolio Guarantee Scheme, help eligible SMEs with inadequate collateral or credit card record obtain hassle-free and working capital financing to expand their businesses.

ABMB group chief executive officer Joel Kornreich said the SME segment is a core focus for the bank.

"In building up to this billion ringgit portfolio, we stay committed to create easy access to financing and providing innovative solutions to address the pain points faced by business owners at different stages of their businesses," Kornreich said.

Meanwhile, CGC president and CEO Datuk Mohd Zamree Mohd Ishak said it had partnered with ABMB a few times and this was the fifth collaboration in tandem.

Zamree believed that this partnership will help to further strengthen ABMB and CGC's commitment to supply greater access to financing for SMEs via the innovative and efficient Portfolio Guarantee Scheme.

"Until today, more than RM14 billion worth of financing has assisted 27,000 SMES via the Portfolio Guarantee Scheme," he said.