-
Would I be
able to get financing if i am going into a business for the first
time or if there is no collateral
or
more worse, if my existing loan has been classified as
non-performing loan (NPL)?
-
Where
can i get financial advisory services relating to my business
needs?
-
Where
can I lodge a complaint against my financial institution?
-
What kind of equipment will I need?
-
How can I better my chances of success?
-
What is a business plan and why do I need
one?
-
How much money do I need to get started?
-
How do I go about financing a business?
-
How do I apply for a loan?
-
What do I do if
my loan request is rejected?
-
Should I start a business in my home, or in
a rented office space?
-
What
are the reasons for a financial institution to reject a loan
application?
Would I be able to get financing if
i am going into a business for the first time or if there is no
collateral or more worse, if my existing loan has been classified as
non-performing loan (NPL)?
Yes,
nothing is impossible. To find out more, contact a
V.N.M Management Consultants
near you.
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Where can i
get financial advisory services relating to my business needs?
Small and Medium
Enterprise (SME) Unit at
V.N.M Management Consultants
that provides financial
solutions and advisory services to small and medium enterprises.
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Where can I lodge a complaint
against my financial institution?
All
commercial banks and finance companies have been required by Bank
Negara Malaysia to establish a complaints unit within their
respective institution. You should first try to resolve your
complaint with your financial institution. However, if you are still
not satisfied with the reply, you can refer your problem to Bank
Negara Malaysia. For matters relating to Bumiputera business loans,
you can also refer your problem to ERF Sdn. Bhd. (a special-purpose
vehicle established by Bank Negara Malaysia to undertake the role of
a one-stop centre on Bumiputera financing issues).
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What
kind of equipment will I need?
Again, this will depend
on the nature of your business. Some office equipment found in small
businesses includes:
- Computer
- Printer (many prefer
laser printers for the professional image they create for
marketing materials, etc.)
- Fax machine
- Separate telephone
line for business number with voice mail
- Separate telephone
line for fax number
- Internet connection
(including e-mail and web browsing capabilities)
- Photocopier
You
might consider investing in a multi-function machine that combines a
printer, fax, scanner, and copier in one unit. If you require other
specialized equipment or tools, you'll want to be sure to include
these purchases in your budget when you're planning your business.
To find out more,
contact a
V.N.M Management Consultants
near you.
How can I better my
chances of success?
-
Don't
be too timid or too proud to ask for help. Network with other
established small business owners to find out how they handle
similar situations.
-
Don't
underestimate your financial needs, particularly cash flow. Have a
solid understanding of the best and worst-case scenarios for your
company, and have a plan in place on how to handle both.
-
Remember that marketing your business is an ongoing activity.
What is a business plan
and why do I need one?
A
business plan is a document that clearly defines your business and
identifies your goals. The typical business plan includes a current
balance sheet and projected financial performance, an income
statement and a cash flow analysis. A solid business plan will help
you allocate resources properly, handle unforeseen complications,
and plan for growth. If you need to go to the bank for a loan, a
business plan will provide specific and organized information about
your company and how you will repay the money.
For
tips on writing a business plan along with sample plans, contact a
V.N.M Management Consultants
near you.
How much money do I need
to get started?
This
depends on the kind of business you wish to start. Do you have
special equipment needs? Will you be working at home, or will you
require a separate space? Will you need to hire employees right from
the start? These are some of the questions you'll need to ask
yourself, many of which you can answer with your business plan.
Once
you have taken care of your building and equipment needs you also
must have enough money on hand to cover operating expenses for at
least a year. These expenses include your salary as the owner and
money to repay any loans you might have.
How do I go about
financing a business?
The
majority of small businesses are started with personal funds from
savings, a company buy-out/retirement lump sum, or a loan from
family members. Some people take part-time jobs so that they'll have
a steady source of income while their business gets going. If your
needs are greater, SME business facility solutions offers several
financing solutions to help you establish and grow your business.
How do I apply for a loan?
When
you go to SME business facility solutions about a loan, you'll more
than likely be asked to fill up the forms :-
Some of
the things the bank may look for in evaluating your application
include:
-
Your
personal and business credit record or credit rating
-
Your
managerial skills, background and experience
-
Your
ability to repay your loan based on cash flow projections
-
The
long-term prospects for your particular industry
The
Small Medium Industry scheme (SMI / SME), Credit Guarantee
Corporation (CGC) Business Financing Loan schemes,
Financial Assistance by Government Ministry &
Agency are the funds offered through the Local Bank and
Development Financial Institutions (DFIs) in financing to help
micro, small and medium businesses get grow. This loan is a
competitively priced business improvement loan designed to provide
businesses, such as grow-ups with limited equity and collateral. To
find out more about this particular loan and whether you might
qualify, contact a
V.N.M Management Consultants
near you.
What do I do if my loan
request is rejected?
First
and foremost, don't despair. If you are turned down for a business
loan, it is likely for one of the following reasons:
-
Evidence record of NPL, Bankruptcy, BMC on your personal and/or
business credit history
-
Your
business, or the industry your business is in, appears too risky
or unpredictable ( non favorable industries).
-
Not
enough security for the loan
-
Incomplete business plan
-
Insufficient cash flow to ensure regular repayment of the loan
Should I start a business
in my home, or in a rented office space?
Many
small business owners start their businesses from their homes
because they offer low-cost office space, as well as giving you the
freedom and flexibility to work the hours you want. Whether you
choose to do this or not depends on how suited your business is to a
home environment. For instance, if you're operating dangerous
equipment or doing things that conflict with residential zoning
laws, you'll have to locate your business elsewhere.
Other
small businesses make their home in low-cost shared office
complexes. Others swap space for bartered services. If it suits the
nature of your business, you can go completely virtual and have no
office space at all just a laptop and telephone access and you're
all set.
What are the
reasons for a financial institution to reject a loan application?
Common grounds for declining credit
applications include:
Applicant does not have ability to repay the facilities applied
for
Purpose of borrowing not in line with facilities applied for
Unsatisfactory financial results of the applicant
Applicant has other substantial borrowings resulting in high
gearing (i.e. amount of loan is higher than capital)
Unsatisfactory conduct of current account by the applicant
Unsatisfactory repayment records with other lenders
Applicant has cases which are pending legal action
High business risk such as over dependence on single buyer or
supplier
Lack of financial commitments from business owners (i.e. not
willing to commit additional working capital)
Weak management of the applicant
Sole proprietor/partners/directors/shareholders/guarantors etc.
facing bankruptcy actions from other parties
It is a requirement by Bank Negara Malaysia that financial
institutions should inform the borrowers formally in writing,
clearly identifying the areas in which the borrower failed to
satisfy. This will ensure that the borrowers are aware of the
reasons for the rejection as well as assist the borrower to improve
in the areas concerned for future loan applications. |
