Smooth access to loans with help of SME Credit Bureau

FINANCIAL institutions and enterprises can now assess, evaluate, measure and monitor the credit risks of existing and potential partners, customers as well as other third parties, with the help of SME CreditBureau (M) Sdn Bhd.

Its chief executive officer Alex Lim said the objective of the bureau is, among others, to smoothen one of the greatest challenges faced by small and medium-sized enterprises (SMEs) - getting financing from banks to grow and expand their business.

When it comes to applying for loans, SMEs that do not have a solid credit history may face problems and this is where the bureau can help.

The SME Credit Bureau acts as a central database containing credit-related information on SMEs and helps evaluate and ascertain their credit-worthiness and financial strengths and weaknesses.

Lim said by having credit ratings for SMEs, financial institutions and trade credit providers are able to make more informed decisions when evaluating loan applications from industry players.

"With the government's emphasis on fostering entrepreneurship and encouraging local enterprises to expand regionally and globally, greater credit transparency will help local enterprises with their funding requirements to fuel their growth," he said.

The SME Credit Bureau was set up by Credit Guarantee Corp Malaysia Bhd (CGC), a subsidiary of Bank Negara Malaysia, last year. It is supported by a strategic partnership with Dun & Bradstreet (D&B) Malaysia Sdn Bhd.

Lim said the establishment of the bureau is also to assist SMEs position themselves strategically and benchmark against the more established SMEs and businesses in the country.

"We hope to improve the overall perception of the SMEs among financial institutions, credit guarantors and people who may want to do business with them," Lim said.

Through the bureau, he said, members will also gain fast and hassle-free access to comprehensive information of customers and their credit ratings.

"Banks and companies can buy business review reports and credit risk reports, which are core reports to SMEs and financial insititutions respectively from us," he said, noting that information is updated monthly and companies can check the accuracy if any dispute arises.

Member registration can be made through its online portal at www.smecreditbureau.com.my.