PETALING JAYA: HSBC Malaysia and Proton Holdings Bhd have partnered to provide support to Proton’s suppliers, mainly local small to medium enterprises (SMEs), via the HSBC Supply Chain Finance (SCF) programme, which allows Proton’s suppliers to obtain early payment of the proceeds from their sales to Proton.
The programme helps suppliers accelerate cash flow, and also provides them with access to working capital at a cost typically lower than their traditional source of financing by leveraging on Proton’s stronger credit profile.
In a joint statement, HSBC Malaysia CEO Stuart Milne said the customised SCF programme represents yet another milestone for the HSBC-Proton partnership as it also involves Proton’s suppliers who would benefit from it too.
“With this solution, we are indeed pleased to be able to help improve the efficiency of the supply chain in the Malaysian automotive industry. This initiative also reinforces HSBC’s continuous support for local businesses especially the SMEs, particularly during the Covid-19 pandemic where access to working capital is vital for businesses to operate,” he said.
The programme is fully digitalised, with Proton being able to access the programme via the HSBC SCF platform, upload invoices and authorise payments. In addition, HSBC has put together a simplified supplier onboarding process to extend support to more suppliers within a short period of time.
This would result in increased sustainability, and lowered cost along the supply chain.
Proton deputy CEO Datuk Radzaif Mohamed said by leveraging on Proton’s strength, it allow vendors access to more liquidity so that they can continue to have good cashflow and focus on their core business.