Block Discounting

Block discounting is a credit facility for motor dealers, credit and leasing companies to enhance
their working capital requirements. It involves in the discounting of block of hire purchase and
leasing agreements for cash. It is the purchase of a block or hire-purchase agreement from a
dealer at a discount rate.
How does the block discounting work?
1. Dealer agrees to sell a batch of hire purchase to the bank.
2. Bank agrees to consider for discount the hire purchase agreement.
3. If bank considers that the agreements are in order and transactions are satisfactory, the
bank will purchase the dealers right.
4. The bank will remit to the dealer the amount representing the net collection value of the
agreement.
5. The dealer act as an agent of the bank and collect the installment from the hirers.
6. The dealer has to maintain a proper accounts and records.
7. The bank has the right to examine and audit of all such account.
Benefits of Block Discounting

Improve funding by refinancing your HP debt receivables

Better planning of cash flow as the installment amount and number of installments are

predetermined
Attractive and competitive interest rates according to type of goods financed
Flexible drawdown and utilization up to approved limit
No commitment or renewal fees on unutilized portion from approved limit
Easy payment options at over 400 Maybank branches nationwide, or online via
Maybank2u.com

Types of goods financed

Motor vehicles
Motorcycles

Consumer durables
Leased equipment
Machinery

Who can apply?

Private and Public Limited Companies

Companies involved in credit granting business for several years