Business Term Financing/-i

Business Term Financing (BTF) is an unsecured (no collateral needed) business financing product for SMEs to enhance and grow their businesses. We offer both Business Term Financing (conventional) and Business Term Financing-i product based on the business activities and needs of the SMEs.

With Funding Societies Business Term Financing/-i, you can apply for a financing amount of up to RM500,000 subject to an interest rate (for conventional) / profit rate (for Islamic) of 1.0% - 1.5% per month and a credit period of up to 18 months. 

Once you have accepted our offer, we will credit the approved financing amount to you, with applicable fees deducted upfront from the amount. 
 

For Business Term Financing/-i there is a flexible financing tenure of up to 18 months. This is calculated based on your financing amount and repayment capability.

If this is your first time with us, here is a run-through on the application process. 

Step 1: Complete the Application form on our page

Step 2: Submit all the documents required for this application

• Company Registration Forms

• Copy of all Director(s) NRIC/Passport

• Latest 6-months Bank Statement

• Latest Audited Accounts & Management Accounts (if available)
   

Step 3: Wait for your email confirmation for financing approval

Step 4: Accept our financing offer (If you’d like)

We will credit your money into a designated business bank account and begin your repayment cycle in the next following month. 

Just like any other financing product, the following fees and charges will be applicable: 

Business Term Financing
Origination Fee: 4% of the approved financing amount, deducted upon disbursement.

Business Term Financing-i
Drawdown Fee: 4% of the approved financing amount, deducted upon disbursement.

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If you are late in making your repayments, the following fees/charges will be imposed:
Business Term Financing
Late Penalty Fee: RM500 per repayment cycle
Late Interest Fee: 0.1% per day (non-compounded) on the amount in arrears

Business Term Financing-i

Late Payment Charges, comprising Compensation (Ta’widh) and Penalty (Gharamah), will be applied under the following conditions:

For default payments before and after the maturity date: Compensation (Ta’widh) may be imposed at a rate of 1% per annum on the overdue balance, which includes the overdue principal and accrued profit.

Funding Societies may impose both Compensation (Ta’widh) and Penalty (Gharamah) as Late Payment Charges, subject to a maximum rate of 10% per annum
 

Early repayments are always encouraged, as SMEs are able to save more on interest and profit shared. 

For Business Term Financing (Conventional), the early repayments are subjected to a 2% early repayment fee on the remaining principal amount to partially compensate our investors on the loss of their residual interest.

If your core business involves the trading of:

1. alcohol;

2. gambling;

3. pornography;

4. tobacco and dangerous drugs;

5. entertainment-related companies – such as karaoke lounges serving alcohol, film production houses producing mainly illicit movies, cinemas that typically screen entertainment-related movies;

6. pork and its by-products;

7. food items that are prohibited under the teaching of Islam such as frogs, snakes, crocodiles;

8. shariah non-compliant massage parlours that allow treatment from the opposite gender;

9. prostitution;

10. interest-based lending, including credit sales with interest charges;

11. conventional insurance and unit trust agencies; and/or

12. production and distribution of idols, statues, and materials and places for worshipping other than Allah

You may not be eligible for Business Term Financing-i.