HSBC Malaysia has extended its first asset-based lending (ABL) facility worth US$15 million to CARSOME Certified Sdn Bhd to support the purchase of refurbished vehicles for retail sale.
CARSOME Certified, an operating entity of the CARSOME group, runs Southeast Asia’s largest vehicle refurbishment facility in Klang, where it reconditions up to 2,000 cars each month.
The financing is expected to help expand its operations in Malaysia.
The ABL facility is structured around the value of assets such as receivables and inventory.
The loan-to-value ratio is tied to business performance and updated regularly in line with asset growth.
Eric Cheng, Co-founder, Chairman & Group Chief Executive Officer of CARSOME said,
“The used car ecosystem is a robust one with multiple touchpoints in the used car ownership journey including buying, selling, media, refurbishment, and financing – and we see the potential in each of these stages. As Southeast Asia’s largest integrated car e-commerce platform, we are delighted to partner with HSBC Malaysia.
There is a growing preference for affordable alternatives and this funding will enable us to scale and expand our CARSOME Certified business that will ultimately help make vehicle ownership more accessible for Malaysians.”
Christina Cheah, Head of Global Corporates and International Mid-Markets HSBC Malaysia said,
“The financing solution we created for CARSOME Certified provides them with flexible funding and enhanced liquidity to expand ultimately providing Malaysians with more affordable refurbished cars to select.
The ABL financing will be tied to the cash flow generating assets where drawdowns are tied to performance metrics of the financials and in live monitoring of CARSOME’s vehicle fleet.”
