HSBC Malaysia has provided its first asset-based lending (ABL) facility to CARSOME Certified Sdn Bhd, extending US$15 million in funding to support the purchase of refurbished vehicles for retail sale.
CARSOME Certified, a key operating arm of the CARSOME group, manages Southeast Asia’s largest vehicle refurbishment facility located in Klang. The facility reconditions up to 2,000 cars monthly and is a cornerstone of the group’s mission to redefine used car ownership across the region.
The financing is designed to accelerate the expansion of CARSOME Certified’s operations in Malaysia. Structured around asset values such as receivables and inventory, the ABL facility offers a loan-to-value ratio that adjusts regularly based on business performance and asset growth.
Eric Cheng, Co-founder, Chairman and Group Chief Executive Officer of CARSOME, expressed confidence in the partnership. “The used car ecosystem is a robust one with multiple touchpoints in the ownership journey, including buying, selling, media, refurbishment, and financing. As Southeast Asia’s largest integrated car e-commerce platform, we are delighted to collaborate with HSBC Malaysia.
There is a growing preference for affordable alternatives, and this funding will enable us to scale our CARSOME Certified business, ultimately making vehicle ownership more accessible for Malaysians,” Cheng added.
Christina Cheah, Head of Global Corporates and International Mid-Markets at HSBC Malaysia, highlighted the tailored nature of the financing solution. “Our facility provides CARSOME Certified with flexible funding and enhanced liquidity to expand, giving Malaysians a wider selection of affordable refurbished cars. The ABL financing is tied to cash flow generating assets, with drawdowns linked to performance metrics and real-time monitoring of CARSOME’s vehicle fleet,” she said.
This move underscores CARSOME’s growing influence in Southeast Asia’s automotive market and HSBC Malaysia’s commitment to supporting innovative financing solutions for high-growth businesses.
-Fintech News
