• “Selangor Advance” is a Shariah-compliant “Vendor Financing Program” that aims to assist Small and Medium Enterprises (SMEs) by accelerating their cash flow and recolving capital to revitalise economic activity.
• This initiative is open to contractors and suppliers to private companies and the Malaysian Government Agencies, including Ministries, Departments, Government Subsidiaries and Government-linked companies or “GLCs”.
• This initiative offers comprehensive financial facilities are offered for each phase of the SMEs’ projects and businesses, such as tender support letters, performance bonds, work insurance, term loans, letter of undertaking, letter of credit, revolving credit, industrial hire purchase and factoring.

• No, it serves as an option that assists businesses in need of financing.

• Yes
• The program complies with the concept of “Tawarruq” (Commodity Murabahah) which is the purchase of a commodity on a deferred payment basis.

• No. It is not necessarily for the company to be Shariah compliance. However, the invoice for the goods/services has to be complied with shariah. You may contact Selangor Advance via the official WhatsApp lines for further info.

• No.
• This facility is open to all suppliers and service providers who deal with the Government throughout Malaysia regardless of Bumiputera status.

• The application will be evaluated thoroughly.
• Priority will be given to suppliers who have a strong track record / good work performance / carrying out work / long-term services with the Government throughout Malaysia and the selected private sector.

• The minimum invoice value for the facility is RM10,000.
• Upon the successful onboarding of the vendor on the program, you may check the application for early payment status at the Selangor Advance portal.

• No minimum frequency for now

• Copy of Main Director(s) Identification Card (IC)
• Latest 6 months bank statement
• Any other additional documents ‘Selangor Advance’ deems necessary during the assessment and onboarding process

The applicant will be requested for these documents after completing the application form on the website www.selangoradvance.com.my

• You will need to fill in the application form available on the website www.selangoradvance.com.my
• You will be informed of your application status within 3 days of receipt of your completed form and documents

• Operational charge for ‘Selangor Advance’ platform as low as 1% from the invoice amount will be deducted before any payment made to the vendor. This charge is meant to cover operational cost such as cloud storage, data security, and few other items which meant to ensure the performance of this platform can be optimized and the functions can be expandable.
• Hassle-free concept which payment will be made once the platform being utilized and agreed by both parties, no hidden cost such as commitment fee, legal fee or stamping fee will be imposed before any payment can be made.

• Collateral is not required
• Vendor who opt to use invoice financing services through ‘Selangor Advance’ can use the services as and when needed.
• Meanwhile, for non-financed invoice payments will only passthrough ‘Selangor Advance’ and will be remitted back to vendor according to the agreed terms.

• No

• Applicants may request up to 70% of the invoice amount for early invoice payment

• Your Paymaster is aware of the financing arrangement. Your Paymaster is notified that its vendors have factored invoices via ‘Selangor Advance’ and that all future invoice settlements are to be made to ‘Selangor Advance’.

• Disbursement of invoice financing will be done within 24-48 hours with relevant supporting documents attached and checked 
• You will be informed of the status of application of early payment of your invoices.

• Participating vendor will enjoy hassle-free financing application. Vendor’s eligibility will be assessed based on job performance and working relationship with your paymaster rather than financial strength.
• Once approved, you as a vendor can unlock cash trapped in invoices ahead of the standard credit terms, freeing up more working capital to grow business while leaving the invoice collection to ‘Selangor Advance’.
• Financing Margin: Up to 85% of invoice value
• Financing Tenure: Up to 180 days
• Financing Limit: Min. RM 10,000, Max. n/a
• Profit rate: Fixed at 1% p.m. on invoice value (deducted from 15% invoice value held as reserve after the GLC Paymaster repays).