Maybank targets RM5b trade financing with myTrade2Cash

by **Cals** Sun 02 Nov 2014, 23:00

Maybank targets RM5b trade financing with myTrade2Cash

Saturday, 1 November 2014+
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[size=16]KUALA LUMPUR: Malayan Banking Bhd (Maybank) expects the myTrade2Cash, a centralised online trade financing service, to facilitate some RM5bil worth of trade financing to Malaysian-based SME exports in the next three years.

The service, which was the result of a collaboration with DagangNeXchange Bhd (DNeX), was launched on Friday

Maybank said myTrade2Cash, the first of its kind in Asean, enables SMEs to conveniently apply for trade finance facilities from Maybank through DNeX’s online platform.

Maybank’s group head of global banking, Amirul Feisal Wan Zahir saidmyTrade2Cash will significantly boost the local SME industry, which accounts for some 33% of Malaysia’s GDP in 2013 and targeted to reach 41% in 2020.

“We are targeting to extend some RM5bil in trade financing through myTrade2Cashwithin the first three years,” he said at the launch on Friday. Also present were Minister of International Trade and Industry Datuk Seri Mustapa Mohamed and DNeX executive deputy chairman Datuk Samsul Husin.

Amirul Feisal said myTrade2Cash combined the strength of Maybank and DNeX to support Malaysian SMEs in need of trade financing facilities to support their export ventures.

“DNeX, which manages the National Single Window, is the single portal through which SME exports are marketed to customers abroad while Maybank, the leader in trade finance in Malaysia, has the scope and expertise to facilitate these exports through its trade finance ability,” he explained.

Through myTrade2Cash, Malaysian SMEs will enjoy one-stop convenience as they can easily apply for trade financing via the portal once an export shipment is made.
“The process is made simpler given the availability of the SMEs’ past trading records and financial statements online via DNeX. Hence, we can offer quick turnaround coupled with reliable and cost effective processing, all without the need for collateral. SMEs can then receive their export proceeds speedily and focus on growing their business,” he said.

Feisal added that the collaboration with DNeX also provides Maybank a unique framework to introduce similar services to its regional markets.

Samsul said that this new facility was timely as SMEs often face challenges in trade financing, specifically in obtaining adequate financing from banks due to low level of disclosure of financial data. These challenges, he said, make it difficult for banks to conduct comprehensive credit rating and risk assessment to provide them appropriate trade financing.

“myTrade2Cash is expected to help exporter SMEs address these challenges as the service can help streamline, simplify and improve access to trade finance for exporter SMEs, and deliver faster and more efficient process for application and submission of supporting documents,” explained Datuk Samsul.

myTrade2Cash which went live on Friday, offered SMEs financing of between RM500,000 to RM3mil. It was expected to serve more than more than 100,000 customers including exporter SMEs of the National Single Window e-commerce Trade Facilitation services managed by DNeX.

Here’s how it works:

The customer has to register online at [You must be registered and logged in to see this link.] Once successful, the customer will be issued with an ID and password for online applications to a range of Trade Finance services, using valid sales or purchase orders as a requirement.

In the second step, a credit check on the SME’s overseas buyer will be conducted by an international credit insurance company thus allowing the customer to make well-informed decisions, forecast financial flow months ahead, and avoid risk of loss.

The third step will be the approval from Maybank, following which the customer will receive up to 100 % draw down of either the pre-shipment or post-shipment value. [/size]