Key Takeaways
- A loan for a new business is an agreement where banks provide capital to businesses, which is repaid with interest. This is essential for funding operations, growth, or starting up.
- To apply for a business loan in Malaysia, businesses must first determine the needed amount, prepare a detailed business plan and more.
- They should consider the early-stage risks of new ventures and opt for loans when the business is more stable and poised for growth.
Starting a new business but need help securing the necessary capital to launch your operations? This is where a loan for a new business is helpful.
However, if you’re currently employed or have just started your entrepreneurial journey for a few months, there are some important considerations to keep in mind.
In Malaysia, obtaining a business loan typically requires having two years of SSM registration, tax filings, and company statements. If you don’t have these documents readily available, don’t worry.
You can still acquire startup capital using personal loans, ensuring that the funding chain remains intact, at least temporarily.
Continue reading to discover the steps and considerations involved in securing a loan for your new business!
What is a Business Loan?
A business loan is a formal agreement between business owners and financial institutions like banks.
The essence of this agreement is that banks provide the needed capital to businesses, which is then repaid over time according to a pre-determined schedule, along with interest.
This financial arrangement is pivotal for businesses that require capital to fund operations, invest in growth, or even get off the ground.
How to Apply for a Loan for A New Business in Malaysia?
Applying for a business loan in Malaysia involves several crucial steps, each important for enhancing your chances of approval:
1. Determine the Loan Amount Needed
Before approaching a bank, it’s essential to have a clear understanding of how much funding your business requires.
This involves identifying the specific purpose of the loan—be it for operational costs, expansion, or purchasing equipment.
An online loan calculator can also provide a preliminary estimate of the amount you should apply for.
2. Prepare a Business Plan for the Bank
A well-crafted business plan is your ticket to a successful loan application. It demonstrates your seriousness and reassures the bank of your venture’s viability.
3. Consider the Terms and Conditions
Different banks offer various terms and conditions for their loans. It’s crucial to understand these terms thoroughly and assess your business’s ability to meet the repayment obligations.
4. Choose the Right Type of Business Loan
Banks in Malaysia offer a range of business loan products, each designed for different needs. Therefore, selecting the loan type that aligns with your business goals is crucial.
5. Prepare the Necessary Documents
Gathering all required documentation is a critical step in the loan application process. This typically includes financial statements, business registration documents, and detailed plans for the loaned funds.
However, fret not! If you lack sufficient income documentation but have a CTOS score of 550 or above, along with assets such as a car or property and existing credit cards, Bluebricks can assist you in securing loans ranging from RM100k to RM300k.
6. Submit the Application Form
Once all preparations are in place, the next step is to submit your loan application to the bank.
This may be followed by an interview with the bank’s representatives to clarify details about your business and the intended use of the funds.
Read More: Understanding Your CCRIS Statement: A Guide For Beginners
Should You Apply for a Loan for A New Business in Malaysia?
While taking out a loan can provide the necessary boost to start or grow your business, it’s vital to consider the risks involved, especially for new ventures.
This is because the early stages of a business are typically marked by uncertainties, increasing the likelihood of failure.
It’s worth exploring ways to launch your business with minimal or no initial capital and consider a loan as a tool for growth once your company is more established and financially stable.
For example, if you plan to open a new branch and have a clear sales forecast, or if your business has an established presence in the market, it might be the right time to apply for a loan.
Similarly, loans can be instrumental in acquiring new machinery or tools that enhance operational efficiency, leading to increased productivity and output.
Read More: How to Apply for A Personal Loan in Malaysia
Bluebricks’ Loan and Consultancy Services
Bluebricks is a reliable bank loan and debt consolidation agency in Malaysia committed to helping borrowers make informed decisions tailored to their financial landscape.
Our array of services caters to various financial scenarios, including:
- Personal loan services
- SME loan services
- Mortgage loan services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
We can also assist in securing the perfect loan solution customised to your unique circumstances, considering various factors such as:
- The loan amount you require.
- How urgently the loan amount is needed.
- Whether you or your parents own a property that has been held for over ten years.
- Your income level.
- Your CTOS score (such as your credit score and credit history).
