Proton partners with Funding Societies to provide credit facility for dealers to purchase floor stocks
Proton is collaborating with Funding Societies (FS) for the latter to provide credit facilities to Proton dealers, who can use the cash to finance the purchase of cars for floor stocking.
Founded in 2015 and described as Southeast Asia’s largest SME digital financing platform, FS’ aim is to solve key pain points for small businesses in accessing financing, which includes the requirement for collateral, complicated and physical paperwork submission, as well as lengthy application processes.
“Demand for personal vehicles saw an increase since the second half of 2020. Underlying this growth are concerns over shared transportation (Covid-19) 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,” said Chai Kien Poon, FS Malaysia country head.
“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,” he added.
“With Proton’s sales volume increase over the past few years, we have seen an increase of trade-in or trade-up transactions. Through the dealer financing service provided by FS, our dealers can finance the purchase of floor stocks to enable the trade-in transaction,” said Wan Ahmad Fadzli Wan Mustafa, GM at Proton Edar.
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.
“Dealers who wish to apply for financing may do so via FS’ online platform. They will be able to provide financing for up to 85% 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,” Wan Ahmad Fadzli added.
Vehicles sold under the PCPO programme undergo a 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. More on PCPO here.