Funding Societies, Proton to provide dealer financing for used car dealers
KUCHING: Funding Societies, Southeast Asia’s largest small and medium enterprise (SME) digital financing platform, is collaborating with national car maker Proton to provide credit facilities for Proton dealers to finance the purchase of cars for floor stocking.
Funding Societies was founded in 2015 to empower SMEs in Southeast Asia by solving key pain points for small businesses in accessing financing which include the requirement for collateral, complicated and physical paperwork submission, as well as lengthy application process.
As SMEs are the backbone of the nation’s economy, Funding Societies are committed to solving the huge SME financing gap in Malaysia and the region.
“Demand for personal vehicles saw an increase since the second half of 2020,” Funding Societies Malaysia’s country head Chai Kien Poon said.
“Underlying this growth are concerns over shared transportation (Covid-19 health crisis) and accommodative government policies during the pandemic.
“With Funding Societies’ revolving credit facility, Proton’s dealers can tap into that growth by increasing their inventory for sale across by increasing their floor stocking inventory of used cars.
“In line with Funding Societies’ mission to provide financing facilities to underserved, creditworthy SMEs, this revolving credit facility provides Proton’s dealers with a more seamless experience.
“They may utilise the facility any time and anywhere upon its activation. Additionally, dealers will have access to our online supply chain financing system to manage their financing facility with us.”
Proton Edar general manager Wan Ahmad Fadzli Wan Mustafa said that with Proton’s sales volume increase over the past few years, they have seen an increase of trade-in or trade-up transactions.
“Through the dealer financing service provided by Funding Societies, our dealers can finance the purchase of floor stocks to enable the trade-in transaction,” he added.
Since its inception in 2019, Proton’s Used Car Management (UCM) unit has introduced operating procedures and provided training for Used Car Inspectors to manage transactions at each outlet and ensure services provided are in line with the expectations set by the brand.
Currently, the company has 35 outlets retailing Proton Certified Pre-Owned (PCPO) vehicles in the country.
“Dealers who wish to apply for financing may do so via Funding Societies’ online platform,” concluded Wan Ahmad Fadzli.
“They will be able to provide financing for up to 85 per cent of the transaction value with repayment periods of up to 90 days.
“With this financial facility, our dealers can grow their business by raising short-term capital to manage their cash flow and even use it for new car purchases from Proton Edar as well.”
Vehicles sold under the PCPO programme undergo a thorough 201-point inspection and are assured to be free of any flood or major accident damage.
Customers also enjoy one-year extended warranty which covers the engine and transmission as well as a one-time free basic service after six months from date of registration.
With the increasing shift to online platforms, UCM has also set up a dedicated Proton used car website (http://used-cars. proton/com) to attract tech-savvy buyers.
Consumers can view stocks without walking into showrooms and browse through the website to get an estimated used car’s market price.