Here are a few scenarious where your business might need to apply for a business loan in Malaysia:
Banks in Malaysia require business loan applicants to prove a minimum of two years of operation (as per SSM registration) and have submitted income tax returns for the same duration. Failure to meet these criteria will result in an automatic loan rejection.
Your business loan application in Malaysia might have been rejected due to the inability to provide crucial financial documents such as an audit report, income tax returns, and the company's 6-month bank statement. These documents are essential for proving your company's financial health and salary disbursements, which are key factors in a bank's decision-making process.
The bank will access your track records, including late or overdue transactions and your monthly balance. They will use this information to assess your credit risk and determine whether you are a trustworthy borrower.
Some of us may not have credit cards or other financial commitments as we are too worried about spending. However, this does not help when it comes to a loan application. This is because the bank does not have enough information to decide if you are a good paymaster or vice versa.
Applying for a business loan in Malaysia involves careful preparation and understanding of the bank’s requirements. Here's what you can do:
Yes, you can explore different funding options to start your business. However, if you prefer to take control of and make decisions for your company, taking out a personal loan is a good option.
Eligibility criteria for business loans in Malaysia can vary, but generally, registered businesses with a proven track record, a clear business plan, and a stable financial history are eligible. Start-ups may need to provide additional documentation to prove their business viability.
