Guides

TOPIC 1: How to apply for small business, micro or start-up financing/ loan

A great idea and a fantastic business plan is best paired with access to funding.  Most start-ups leverage on personal savings and personal credit cards to develop their businesses.  Don’t worry if you don’t have savings or assets to liquidate.  You may want to consider a small-business start-up loan.

3 Simple Steps to apply for small business, micro or start-up financing/loan:

  1. Identify the Purpose
    • Determine the purpose of the financing/ loan (e.g. paying daily operating expenses, payroll or purchasing equipment)
    • Be sure of your ability to repay the financing/ loan
    • Realistic financing/loan amount
  1. Find the right Financing/ Loan
    • Compare the interest rate of all major banks
    • Log on to www.imsme.com.my and check for available financing/ loan
    • Ensure that your business revenue covers the operating expenses and monthly repayment
  1. Complete the Financing/ Loan Application
    • Get-ready the relevant documents
    • Approach your preferred bank for the financing/ loan (in person or submit online)
    • Follow-up

TOPIC 2: SME Business Loan Eligibility & Requirements in Malaysia

Are you considering to apply for an SME business financing/ loan? Not familiar with the common eligibility criteria and requirements?

Here is your answer.  This guide is to help you to understand the basic of SME business financing/ loan eligibility and requirements in Malaysia. Increase your chances of getting a loan/financing approved, ensure you understand and be in the know of the general criteria and requirements prior to submitting an application.

 

Eligibility and requirements for most SME business financing/ loans in Malaysia

The eligibility criteria is set by the banks to ascertain that an applicant qualifies for a financing/ loan. The eligibility and requirements may vary based on the nature of the SME business financing/ loan criteria offered by banks.

Requirements required by majority banks when processing a SME business financing/loan application include:

  1. Applicant must be a Malaysian citizen aged 21 years and above
  2. The business must be registered and/ or licensed in Malaysia
  3. The business entity consist of either of Sole Proprietorship/ Partnership/ Limited Liability Partnership/Sendirian Berhad/ Individual/ Professional Bodies
  4. The business has been in operations for at least three (3) years

 

Determining Applicant Business Financing/ Loan Eligibility
Banks will evaluate a lot of aspects before approving a SME business financing/ loan. Aside from the general criteria, other factors that may influence business financing/ loan eligibility include credibility and financial stability.

  1. Repayment History
    Banks determine an applicant’s reliability based on his/her repayment history. The repayment behaviour is an important parameter in determining creditworthiness. A positive repayment history enables an applicant to get an SME business financing/ loan with ease. Always pay outstanding debt or pre-existing financing/ loan on time to avoid bad credit scoring that may affect the business financing/ loan eligibility.
  2. Business Revenue Stability
    Different business come with different level of risk and opportunities. Most banks are inclined to approve higher financing/ loan amount for businesses with consistent record of profitability. Business revenue stability reflects commitment to the business and ability to make repayments. In such case, the applicant is more likely to qualify for an SME business financing/ loan.

As part of our continuous commitment to provide better service and customer experience, imSME will be on a planned system maintenance from

Friday 24th Jan 2020, 10.00pm until Saturday 25th Jan 2020, 11.59pm We apologise for the inconvenience. Thank you for your understanding and support.