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 SME Business Loans, Procedure...

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alqa
post Feb 24 2007, 02:23 PM

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Joined: Jan 2003
From: Selangor



yeah in Malaysia, commercial banks are not so keen to give out loans to startups and new businesses. you need to be in operation for at least 2 years with good performance. then you still need to prove your ability to pay the loan as well as convince them the viability of your business plan/idea/venture.

for startups its you'll have better chance with development bodies such as SMIDeC, MDeC, PNS, SME Bank, etc under their entrepreneurial development fund or sumptin. but once you enrolled under such development scheme/program, you are under their scrutiny. sometimes they just want to see your monthly progress report and accounts, sometimes, they want an equity in your business... and sometimes, they even appoint one of their staff as a director in your company.

furthermore, depending on your company performance, commercial banks would require guarantor and/or collateral as well. if you have a standup background, with some hard assets, maybe the CGC woul be willing to guarantee you, otherwise you're back to square one.

whatever it is, all commercial banks or development bodies/bank will only provide from 80% to 90% of the required fund. meaning that you still need to have your own cash for that remaining amount.

if you are looking for loans less than 50k forget it, its too small, they'll just ask you to get personal loan instead.

 

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