The primary suppliers of business loans in Malaysia are commercial and industrial banks. These organisations are notorious for enforcing stringent lending rules and are subject to intense regulation by the Bank Negara Malaysia (BNM).
Several financial services companies, including government organisations and venture capital, offer business loans in addition to banks.
Development Financial Institutions (DFI) are government-backed financial services companies that provide Micro Enterprises and SMEs with focused financial support.
Development Financial Institutions (DFI)
Bank Rakyat
Bank Pembangunan Malaysia Berhad
Agrobank
SME Bank
BSN
EXIM Bank
Government Funding/Grants
Soft Loan Schemes for Services Sectors
Soft Loan for SMEs
Tabung Usahawan Siswazah (TUS)
Young Entrepreneur Fund (YEF)
Tabung Pembangunan Pengangkutan Awam
Bumiputera Enterprise Enhancement Programme
SME Emergency Fund
Business Start-Up Fund (BSF)
TEKUN Financing
Skim Kredit Pengeluaran Makanan (SKPM)
Rural Economy Funding Scheme (SPED)
PROSPER Usahawan Muda (PUMA)
Who can apply for business loan?
Before applying for a business loan in Malaysia, there are three crucial things you should be aware of:
Company’s years of operation
You must be the owner of a business that has been in operation for at least one to two years with the appropriate records and paperwork in order to be eligible for a business loan application.
Official business classification
According to SME Corp, a government agency under the Ministry of Entrepreneur Development and Cooperatives, a business is deemed an SME if it meets the following criteria
Sector | Micro SMEs | Small SMEs | Medium SMEs |
Manufacturing | Sales turnover < RM300,000 Full-time employees < 5 | Sales turnover < RM15 million Full-time employees < 75 | Sales turnover < RM50 million Full-time employees < 200 |
Services & Others | Sales turnover < RM300,000 Full-time employees < 5 | Sales turnover < RM3 million Full-time employees < 30 | Sales turnover < RM20 million Full-time employees < 75 |
Why Business Loan?
You keep ownership and management of your business. Bringing on an investor will boost your company's cash flow by strengthening its financial backing.
A loan can provide a buffer against unforeseen circumstances. As a precaution, it's always a good idea to have some emergency cash on hand in case something goes wrong.
On-time loan repayment increases your lenders' confidence in you, which in turn fosters trust. You will thus have access to more profitable chances down the road.
What to do?
Starting a business can be an exciting yet challenging journey, and securing the right financing plays a critical role in its success. There are numerous business startup loans available in the market, each designed to meet different needs. These include Term Loans, Business Premises Financing, Equipment Financing, Financing Scheme Support for SMEs, Export Financing, and Business Overdrafts, to name a few. With so many options available from various banks and financial institutions, it can be overwhelming for any business owner to determine which loan or financial product best suits their specific business needs. This is where SMI FUNDING becomes a valuable resource for entrepreneurs.
SMI FUNDING is a trusted consultant that simplifies the process of identifying the right financing solutions. What sets SMI FUNDING apart is its ability to offer both loans and grants, providing clients with a broader range of options. This flexibility allows SMI FUNDING consultants to present the most suitable financial solutions tailored to a business’s unique circumstances. With a comprehensive understanding of various loan and grant programs, SMI FUNDING helps businesses navigate the complexities of financial options to find the best fit.
For business owners looking for guidance, the best way to begin is by visiting the official SMI FUNDING website, www.smifunding.com. There, you can easily access loan or grant options through a simple click. A pop-up will prompt you to book a call, where an SMI FUNDING consultant will reach out to discuss your business. During this call, the consultant will ask a few questions to gain an overview of your business, and from there, a Zoom meeting with a loan and grant expert will be scheduled. This online consultation is completely free and comes with no hidden costs or obligations, offering business owners valuable insights into their financing options.
Don’t wait—take the first step toward securing the right financial solution for your business by visiting www.smifunding.com and booking your free consultation now. The team at SMI FUNDING is ready to help you make informed decisions and support your business’s growth and success. Thank you!
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