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How may we help you?

Seagate Global invests our capital in materials and machinery to help local construction companies who have been awarded contracts by the Malaysian Government.

TO ASSIST LOCAL MALAYSIAN CONTRACTORS

SPP is a program specifically designed to assist Local Malaysian Contractors that were awarded contracts by the Malaysian Government.

EASY AND SAVE TIME

The contractor does not have to go through the complex and time consuming process of obtaining a bank or factoring company loan.

COLLABORATION WITH MALAY CONTRACTORS ASSOCIATION (PKMM)

Seagate works closely with Persatuan Kontraktor Melayu Malaysia (PKMM) to assist its members who are in need of money for their project.

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CAPITAL AND VOLUME PURCHASES

Seagate purchasing in projects is designed to help contractors by using the advantage of both capital and volume purchases to negotiate better discounts. Seagate purchasing of goods at a lower cost will benefit the contractor full circle.

INVEST IN MATERIALS & EQUIPMENTS

Seagate invests our funds to purchase materials and to purchase, or rent, equipment on the contractors behalf.

TRUSTED AND RELIABLE

In this innovative program, the government achieves their goals by having their projects completed on time. Local suppliers receive payment from Seagate for material purchases, eliminating credit risk for the supplier.

Comparison Between Factoring Company, Bank Financing & Seagate SPP Program

Factoring Company 

  • Contractor simply borrows money they already had and invested on the project
  • At least 3 years of audited financial statements
  • Company documentations are required
  • Application process is 3 months or more and may be rejected at last minute
  • Maximum Loan to Value of 80% for factoring facility
  • Process cost is very expensive
  • Contractors need to have seed money
  • Central Credit Reference Information System (CCRIS) and Credit Tip Off Service (CTOS) checking required

Seagate SPP Program

  • Seagate invests in the project, not as a loan to contractor
  • Contractor completes a simple investment due diligence’s form
  • Seagate will check on the background of contractor’s company
  • Contractor provides Government Letter of Award
  • Fast processing- Seagate takes less than 1 week to decide whether to invest or not
  • Seagate has standard legal documents that can be signed by the contractor in 15 minutes
  • Cost of legal fees is incorporated as parts of cost structure without requiring contractor to pay up front
  • Seagate does not use the Loan to Value (LTV) method since the investment is not a loan to the contractor
  • Seagate will only receive their payment portion from the government, not the whole contract proceeds. As for contractors, they will receive their own payment portion from the government for work progress until completion
  • The contractor has control of their parts of payment from Government
  • Seagate invests in materials and machineries for the project; therefore, the contractor can save and use their capital for labor and other purposes
  • Seagate will invest in contractor with Letter of Award from Government and when they agree to Seagate’s investment return policy. Subject to availability of funds at any point in time
  • Once all investment agreements are assented, Seagate will start to deliver all materials and machineries within 14 days to the project site

Bank Financing 

  • Project Financing structured as a loan to contractor
  • Contractor must have 3 years audited accounts – unaudited accounts will be rejected
  • Contractor to provide documents such as company profile, bank statement and others (which consume more time to prepare)
  • Contractor must wait 1 to 6 months for loan approval
  • Contractor must wait 2-3 weeks for lawyer to prepare legal documents after loan approval
  • Contractor to pays legal fees before disbursement of loan (up front cash by contractor)
  • Maximum loan amount is 70% of contract value, remaining amount is  financed by the contractor
  • Contract proceeds assigned fully to the bank. Bank will deduct their principal, interest, bank charges & all fees before giving the balance to contractor. Contractor has no control over the balance amount
  • Loan value depends on contractor’s balance sheet (financial strength) instead of contract value
  • Loan value approved may not be enough for working capital on the project
  • Loan may be rejected if contractor has bad financial record
  • Even after the loan is approved, the bank may still delay disbursement to contractor.

SPRM Project, Shah Alam

Seagate Investment – RM6Million

Rantau Project, Negeri Sembilan

Seagate Investment – RM500K

Ayer Lanas Project, Kelantan

Our recent work

Seagate Global Capital has invested in Government projects across Malaysia, by partnering up with contractors by purchasing materials on their behalf.

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Government acknowledgement

The Malaysian government acknowledges Seagate Smart Partnership Program to assist Local Malaysian contractors growth by providing financial support for project materials and machinery purchases.

The program provides local companies with needed construction materials and machinery on a timely basis which helps them to better utilize limited capital and increase their cash flow. The program uses the co-op volume purchasing power and the strong balance sheet of Seagate to purchase materials in bulk to help local contractors obtain better pricing from local suppliers and reputable manufacturers, while Seagate Global Capital guarantees the payment to the supplier, eliminating the possibility of loss by the supplier.

Get in touch

Should you have any inquiries, please contact us through the information below. It is our pleasure to assist you.

VISIT US

32B, Jalan Diplomatik,
Diplomatic Enclave,
62050 Putrajaya, MALAYSIA.

CONTACT US

+603.8861.8017

General line

+603.8861.8016

Fax line

EMAIL US

info@seagateglobal.com.my