Nowadays, applying for loan is never as easy as last few years time. We are having hard time accepting rejection, crushed and demotivated to continue purchasing our dream houses. So this is just a sharing, how we could prepare ourselves to get our loan approve.

(For people who owns business or starting their own business)
Every bank has their own appetite and each of their requirement will be different. Here I will give you few tips where every bank will definitely accept your loan without you delaying to get other documents done...
1. Already had sdn bhd business more than 2 years.

a) Remember to register your company under SSM.
b) Pay income tax Form B, be a good citizen.
c) Remember, if you pay tax. Try to pay PCB with your own account and not through your accountant company account. Trust me, this will save you alot alot of time and complexity when applying loan.
Bank will need the following documents

a. Your SSM registered cert >2 years
b. Income tax Form B
c. Your company bank statements

You are all set.
2. What if my company is less than 2 years or I work as a freelance.

a) Register a company with SSM
b) Open company bank current account
c) Register your company under KWSP
d) Contribute a fixed salary to yourself, lets'say RM6000 as your salary. Credit the amount monthly consistently form your company bank current account to your personal bank account. This will create a proper employee income proof.
e) Contribute KWSP to yourself, deduct 11% from your Rm6000 INCOME and 13% contributions from your own company.
(Bank will need to look at EPF and Bank statement credited salary as a proof of income)
f) Create your own payslips.
Now you can apply loan as an employee of your own company. Bank will need to look at you Payslips, bank statement with RM6000 credited monthly, EPF shows 11% and 13% contributed for your Rm6000 income.
This will be sufficient to apply loan.
Q&A
-----------------------------------------------------------------------------------
Why I can't use my company tax BE form or Company bank statement to apply for loan?
--- Because bank wouldn't look at company with SSM registered less than 2 years. That's why it is hard for people who just established company to apply for loan if they didn't prepare as I stated as above---
----------------------------------------------------------------------------------
Why I work as hawker and credit a monthly fixed income into my own account. Still, bank wouldn't accept my loan?
---Because your income doesn't shows where it comes from, bank view this as a very vague income proof. Bank will wonder where your income comes from, even you show him picture of you goreng chay kuew teow, it is not enough. They wouldn't accept your loan as you could be a syndicate crediting your income from drugs money.
Bank is a simple minded creature, all they need is a solid document to show them. Just follow point no.2 and you can apply loan easily. No matter you are a hawker, a freelancer, someone who earn a living from money dropping from skies or had a goose that lays gold egg. No problemo.-----
----------------------------------------------------------------------------------
Why bank wouldn't accept my loan when I have my company registered under SSM for 1.5 year and my company profit is very solid and strong. Moreover I am a responsible citizen who pays tax!!??
--- First of all, bank is quite cocky. They want to be insured that your business is strong and solid and not crumble when wind blows, company established more than 2 years will make them believe so.......lol.... anyway, bank will only accept loan application through your company income and profit if given your company has established for 2 years or more.
Other solution? Buy a empty shell company established more than 2 years old, with transaction in their bank statement...... this is not encourageable... but oh well.. -------
---------------------------------------------------------------------------------

The end
Anonymous writer.

Any other good suggestions or ideas, do present it out. This is and open ended discussion.

thanks for your reply

is this what they mean shell company? i can set up a company doing something unrelated to my works and it is ok?

My advice is you better speak to a company secretary or public accountant to plan yr biz venture...and get all the info u required.

Too much to write here.

Do you need ea and income tax?

still on this topic? LHDN and banks very smart nowaday

Solid advice. I wonder how newly start ups / business (stabilizing) would fair in their loan application without few years of track record to back it up.

Nowadays, applying for loan is never as easy as last few years time. We are having hard time accepting rejection, crushed and demotivated to continue purchasing our dream houses. So this is just a sharing, how we could prepare ourselves to get our loan approve.

(For people who owns business or starting their own business)
Every bank has their own appetite and each of their requirement will be different. Here I will give you few tips where every bank will definitely accept your loan without you delaying to get other documents done...
1. Already had sdn bhd business more than 2 years.

a) Remember to register your company under SSM.
b) Pay income tax Form B, be a good citizen.
c) Remember, if you pay tax. Try to pay PCB with your own account and not through your accountant company account. Trust me, this will save you alot alot of time and complexity when applying loan.
Bank will need the following documents

a. Your SSM registered cert >2 years
b. Income tax Form B
c. Your company bank statements

You are all set.
2. What if my company is less than 2 years or I work as a freelance.

a) Register a company with SSM
b) Open company bank current account
c) Register your company under KWSP
d) Contribute a fixed salary to yourself, lets'say RM6000 as your salary. Credit the amount monthly consistently form your company bank current account to your personal bank account. This will create a proper employee income proof.
e) Contribute KWSP to yourself, deduct 11% from your Rm6000 INCOME and 13% contributions from your own company.
(Bank will need to look at EPF and Bank statement credited salary as a proof of income)
f) Create your own payslips.
Now you can apply loan as an employee of your own company. Bank will need to look at you Payslips, bank statement with RM6000 credited monthly, EPF shows 11% and 13% contributed for your Rm6000 income.
This will be sufficient to apply loan.
Q&A
-----------------------------------------------------------------------------------
Why I can't use my company tax BE form or Company bank statement to apply for loan?
--- Because bank wouldn't look at company with SSM registered less than 2 years. That's why it is hard for people who just established company to apply for loan if they didn't prepare as I stated as above---
----------------------------------------------------------------------------------
Why I work as hawker and credit a monthly fixed income into my own account. Still, bank wouldn't accept my loan?
---Because your income doesn't shows where it comes from, bank view this as a very vague income proof. Bank will wonder where your income comes from, even you show him picture of you goreng chay kuew teow, it is not enough. They wouldn't accept your loan as you could be a syndicate crediting your income from drugs money.
Bank is a simple minded creature, all they need is a solid document to show them. Just follow point no.2 and you can apply loan easily. No matter you are a hawker, a freelancer, someone who earn a living from money dropping from skies or had a goose that lays gold egg. No problemo.-----
----------------------------------------------------------------------------------
Why bank wouldn't accept my loan when I have my company registered under SSM for 1.5 year and my company profit is very solid and strong. Moreover I am a responsible citizen who pays tax!!??
--- First of all, bank is quite cocky. They want to be insured that your business is strong and solid and not crumble when wind blows, company established more than 2 years will make them believe so.......lol.... anyway, bank will only accept loan application through your company income and profit if given your company has established for 2 years or more.
Other solution? Buy a empty shell company established more than 2 years old, with transaction in their bank statement...... this is not encourageable... but oh well.. -------
---------------------------------------------------------------------------------

The end
Anonymous writer.

Any other good suggestions or ideas, do present it out. This is and open ended discussion.

Dear,

Simple
1. Sole prop doesn't need auditing, the salary declared to himself will be a fallacy and no justification. Hence only bank statement comapny can justify its income.
The rest I will email you, it's not appropriate to write it out here.

Hi, so this means sole prop is impossible to get loan?

Is a must to register sdn bhd?

Thanks

Kasi B form, kasi e lejar prove "bakai cukai"=0, no tunggakan=gaodim.

Bank don't even want to see apa bank statements and etc extra fish stuff.

Usually sole prop harder to get loans, but won't say it's impossible if your business is really making profit.

After all, bank only cares about getting their monies back in the end.

If you can show you're making good money, usually they are rather willing to approve your application.

Not sure if they changed anything recently thou.
Baki Cukai = 0 does not mean you're capable to repay the banks for the loans or you're making money with your business.

In fact, I doubt any bank will offer you a loan without having a look at your bank statements

If Ada, then a lot of people can open sole prop and borrow already

I thought it's most about how much tax to pay as this indicated the earnings level.

The same reason why people dun take the Form B and EPF statement solely to judge the level of income obtained by a person.

It has to be usually backed up with payslip/payment voucher/bank in records to show that you actually receive those monies instead of having paper income.

I have a business that incomes come in on the first week of the month. If I bank in the money into the company account on the first week (5th maybe). Could I pay the salary to myself on the 7th?

And if I bank in 8k, and pay salary of 8k to myself. Is it still acceptable?

Thanks and sorry to bump old post.

Hi, so this means sole prop is impossible to get loan?

Is a must to register sdn bhd?

Thanks

Kasi B form, kasi e lejar prove "baki cukai"=0, no tunggakan.

EDITED.

Usually sole prop harder to get loans, but won't say it's impossible if your business is really making profit.

After all, bank only cares about getting their monies back in the end.

If you can show you're making good money, usually they are rather willing to approve your application.

Not sure if they changed anything recently thou.
Baki Cukai = 0 does not mean you're capable to repay the banks for the loans or you're making money with your business.

In fact, I doubt any bank will offer you a loan without having a look at your bank statements

If Ada, then a lot of people can open sole prop and borrow already

I thought it's most about how much tax to pay as this indicated the earnings level.

The same reason why people dun take the Form B and EPF statement solely to judge the level of income obtained by a person.

It has to be usually backed up with payslip/payment voucher/bank in records to show that you actually receive those monies instead of having paper income.

Gotcha, need few relevance documents to prove the earnings is valid.

Dear Daveliew,
1. Your company must be registeres SSM >2years. then only the 6 months bank statement income will be verify validate.
Dear tanshaoya,

1. SOle prop won't be a problem, just that your business credit income must be good for the 6 months, and as said, 2 years of SSM registered.

2. ONly sdn bhd and LLC can get salary and validate as income from bank pov.
Bank statement is a must, as business, bank statement is their lifeline. hence you are right!
U r right!

Thanks for your reply, may I know what is LLC?

It's called limited liability company

There are few types of business company you can set up:

1. Sole proprietorship
2. Partnership
3. SDN BHD
4. Limited Liability Partnership
Limited Liability Partnership is quite new in Malaysia and has been around since 2012, so it's not fairly heard before, but presently it's the most opt for option. It's the cheapest, safest in terms of business terms protection and easiest to operate for new startup.

Sole Prop
- Sole purpose is for people with business under his own very name. But the company is directly interwine with the owner assets. So if any lawsuits charge to your company successfully, your debt payable will have no boundary, you would need to fork out your own personal assets, cash to pay off the company debts. Hence, anything happen to the company, you will be bankrupted.

- No shares allocation

Partnership
- Same as Sole Prop, just that you have another partner to share the responsibility with.

SDN BHD
- You can have multiple shareholders as this company will have shares allocations, you can transfer shares around director.

- It is much more costly, as you need to pay below profession to keep your company afloat with Malaysia guideline and policy.

Company Secretary – to organise AGM & submission of annual return to SSM  (RM1,100)

Tax agent – to compute the tax figures & submission of form C to LHDN (Inland Revenue Board) RM1,200

Auditors – to conduct audit on the management accounts & prepare audited financial statements. RM1,500

Account person – to prepare full set management accounts for audit purposes RM1,800Total estimation = RM5,600

The reason I choose LLP is therefore I am a cheapskate who doesn't wish to pay too much to establish my own startup company =P. Moreover, LLP is a seperate legal entity which protect my own personal assets. When my LLP company been sued or bankrupt, creditors cannot come after me. But for sole prop and partnership, creditor can come after you and they will hunt you down definitely.

Having LLP save me lots of cost, I don't need to submit audit to the government yearly.

- RM500 to register your company
- RM40 Certificate fees
- RM15 stamping on certificate fees

Total cost RM555

LLP only requires a secretary which the director can be appointed as one. And the company can be set up in just few days, superbly easy!

I had just recently set up my own company "Fintech LLP",

Good info, thanks. I am a freelancer, so the cheapest option for me  is llp I guess.

It depends.

Different company holds different value.

If you are a startup, sdn bhd in malaysia is more valuable, as it is more accountable and credible. Hence crowdfunder would more than likely invest in such company registered.

It depends which type of company suits you.

Cheers