Quickash to provide financing for used-car dealers

KUALA LUMPUR, Oct 20 -- ManagePay Systems Bhd's wholly-owned unit, Quickash Malaysia Sdn Bhd, a licensed peer-to-peer (P2P) financing platform, will be providing floor stocking financing to 365 Resources Sdn Bhd’s recruited used-car dealers secured by vehicles as collateral and guarantee.

In a statement today, ManagePay Systems managing director and QuickKash acting chief executive officer (CEO) Datuk Chew Chee Seng said, as part of the deal, participating used-car dealers will be able to access financing of up to 70 per cent of the transaction value of the used cars.

"QuicKash will provide a seamless process and, through automation and technology, speed up and lower the cost to serve the financing needs of these SMEs (small and medium enterprises) in an efficient and effective manner. 365 Resources, as the appointed programme manager for the collaboration, will actively offer the product to SMEs in the used-car business," he said.

Chew also said the project will start with an initial target of RM30 million and will offer investors a guaranteed return, true to Quickash’s guaranteed notes formula since it opened its doors in late-2017. 

"The collateralised floor stocking financing will be offered to 100 car dealers brought to us by 365 Resources and SAG (Semangat Anggun Auto Sdn Bhd)," he said.

He added that each car dealer may put up to 10 cars as collateral with a maximum sum per car capped at RM30,000. 

Meanwhile, 365 Resources CEO Soh Chee Kang said traditional financing avenues do not usually cater to used-car dealers, often forcing them to raise money from lenders that charge hefty interest rates.

"These extra interest rates are then passed on to used-car buyers, who sometimes fail to find much value in purchasing used cars, instead of a brand new car,” he added.

-- BERNAMA