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