SME Business Financing

SME financing is funding that helps small and medium businesses run and grow, from working capital to expansion. Bank loans are offered by banks regulated by Bank Negara Malaysia. Funding Societies is an SME digital financing platform registered with the Securities Commission Malaysia, so our financing is an alternative to a bank business loan, with a fully online application.

Read more: What SME financing means

It depends on what you need the money for. Micro Financing/-i suits urgent business expenses, Micro Credit Line suits recurring short-term needs, Invoice Financing/-i turns unpaid invoices into cash, Business Term Financing/-i suits larger planned spending, and Property-Backed Secured Financing suits property owners who need a bigger amount. Dealer Financing and Auto Distributor Financing are built for vehicle businesses.

Your business needs to be registered with SSM (Micro Financing/-i also accepts businesses registered under the Sabah or Sarawak state ordinances), have at least 30% Malaysian shareholding (51% for Consumer Electronic Financing) and have operated for at least 6 months. Invoice Financing/-i, Dealer Financing, Auto Distributor Financing and Consumer Electronic Financing need at least 1 year in operation. Revenue requirements vary by product, starting from RM60,000 a year.

A new business or startup can apply once it has operated for at least 6 months. If your business is younger than that, government grants and schemes may be a better place to start.

Apply online: choose your financing product, fill in its form and upload your documents. Most products need the IC of all directors and the latest 6 months of business bank statements. Some products need more, such as company registration forms, or audited or management accounts for Invoice Financing/-i.

From RM3,000 up to RM20 million, depending on the product. Micro Financing/-i and Micro Credit Line go up to RM200,000, Business Term Financing/-i and Dealer Financing up to RM500,000, Invoice Financing/-i and Auto Distributor Financing up to RM1 million, and Property-Backed Secured Financing up to RM20 million.

Rates and tenures depend on the product:

• Micro Financing/-i: 0.8% to 1.5% a month, up to 18 months

• Business Term Financing/-i: 1.0% to 1.5% a month, up to 18 months

• Micro Credit Line: 1.5% a month (flat), with each drawdown repaid within 12 months

• Dealer Financing: from 9% a year, up to 120 days

• Auto Distributor Financing: from 0.5% a month, up to 120 days

• Property-Backed Secured Financing: from 10% a year, up to 12 months
  
  

Fees, such as drawdown or facility fees, vary by product and are listed on each product page.

Micro Financing/-i applications can be approved in as fast as 15 minutes, with funds disbursed within 2 working days after the offer is accepted. For other products, we aim to make an offer within 2 to 5 working days after we receive your full documents, and funds are disbursed once you accept the offer.

Not always. No-collateral options are available, such as Micro Financing/-i, Micro Credit Line and Business Term Financing/-i. Property-Backed Secured Financing uses your property as collateral.

Yes. Business Term Financing/-i, Micro Financing/-i and Invoice Financing/-i are offered in both conventional and Shariah-compliant versions.

Learn more about Islamic financing.