Thursday 28 Sep 2023
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KUALA LUMPUR (Oct 20): ManagePay Systems Bhd’s peer-to-peer (P2P) financing platform is set to provide floor stocking financing for used car dealers. 

In a statement, the company said wholly-owned P2P financing platform QuicKash Malaysia Sdn Bhd will be providing floor stocking financing to 365 Resources Sdn Bhd’s recruited used-car dealers with vehicles acting as collateral and guarantee. 

ManagePay said that under the partnership, participating used car dealers would be able to access financing of up to 70% of the transaction value of the used cars. 

365 Resources CEO Soh Chee Kang noted that the traditional financing avenue does not usually cater to used car dealers, resulting in the latter raising money from lenders that charge hefty interest rates. As a result, the costs of keeping up with these rates are passed down to buyers, who as a result sometimes look into buying a new car instead. 

“After extensive market research and advice from our associate company Semangat Anggun Auto Sdn Bhd (SAG Group) with their deep experience in the industry, we decided to set up the business and go into bed with QuicKash to close the gap,” Soh said. 

SAG Group managing director See Kok Wah said the group would be committed to promote the offering to its network and act as an advisor and marketing partner to 365 Resources. 

“Our commitment to this collaboration stems from our shared vision with QuicKash Malaysia and 365 Resources to assist the SMEs in the used car industry,” See stated. 

ManagePay managing director and acting QuicKash CEO Datuk Chew Chee Seng said the project will still start with an initial target of RM30 million and will offer investors a guaranteed return. 

“The collateralised floor stocking financing will be offered to 100 car dealers brought to us by 365 Resources and SAG. Each car dealer may put up to 10 cars as collateral with a maximum sum per car capped at RM30,000. We will expand the offering thereafter to reach out to more SMEs,” said Chew. 

365 Resources will be the appointed program manager under the partnership aimed at SMEs in the used car business. 

Shares in ManagePay closed unchanged at 16 sen, valuing the group at RM113.67 million. It saw 2.93 million shares traded. 

Edited ByS Kanagaraju
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