SME Financing

SME Financing refers to a selection of funding services that are specifically designed to meet the needs of Malaysian Small and Medium Enterprises (SMEs). SME financing includes a range of options to help these smaller businesses obtain the necessary capital to start up, operate, expand, or improve their operations. Listed above are a selection of business funding options to take your SME to the next stage.

SME loans are typically offered by banks and regulated by Bank Negara Malaysia. SME financing, on the other hand, is often provided by alternative or digital platforms regulated by other bodies.

It can be faster, more flexible, and doesn’t always require collateral. A practical option for businesses that may not qualify for traditional business loans.

Funding Societies offers SME business financing starting from as low as RM3,000 and in some cases up to RM2 million for qualifying businesses. The exact amount depends on your business size, tenure, and cash flow profile.

To qualify, your business needs to be registered in Malaysia and typically operating for at least 6‑12 months. Your business should generate consistent bank transaction history. Funding Societies assesses these elements to offer business financing as an alternative to traditional business loans from banks.

With Funding Societies’ online process, eligible businesses may receive conditional approval in as little as 15 minutes, and funds can be disbursed within 5–7 working days. This speed is one reason SMEs consider digital business financing as an alternative to loans.

Yes. Many of Funding Societies’ SME financing products are unsecured, meaning you don’t need to pledge property or other assets. This makes them a practical option for smaller businesses and those who don’t have large assets to offer as security.

Funding Societies offers a range of SME business financing products, including Micro Financing, Invoice Financing, Term Financing and Property‑Backed Secured Financing. Each is tailored to business needs like cash‑flow support, working capital or asset leverage.

Business term financing is a type of loan provided to businesses for a set amount and repayment period, often used for expansion or capital investment.

Micro Financing/-i is a form of business financing designed to support micro, small, and medium-sized enterprises with smaller funding needs. It helps business owners manage cash flow, sustain daily operations, or fund short-term growth, typically without collateral. Offered in both conventional and Shariah-compliant formats, micro financing provides accessible capital with flexible tenures and competitive rates, tailored to suit various business activities.

Invoice Financing/-i i s a type of business financing that allows companies to unlock early cash flow by financing their unpaid sales invoices (Accounts Receivable) or purchase orders (Accounts Payable). It helps businesses access working capital without waiting for payment from buyers or customers.

This form of financing is suitable for companies that operate on credit terms and need upfront cash to maintain smooth operations. Both conventional and Shariah-compliant (Invoice Financing-i) options are available, depending on business needs.

Micro Credit Line is a flexible financing facility that provides SMEs with access to short-term working capital as and when needed. Instead of receiving a lump sum upfront, businesses are given a credit limit they can draw from multiple times during the availability period.

Dealer Financing is a revolving credit facility designed for used car dealerships to finance their vehicle purchases. It helps optimise cash flow by allowing dealers to access funds quickly and only pay interest for the actual days the financing is used.

Property-Backed Secured Financing is a business financing solution where SMEs use completed, unencumbered properties as collateral to secure funds. This type of financing allows businesses to leverage their property assets to access larger amounts of capital, with more competitive rates compared to unsecured options.