Practical business loan solutions in Malaysia
Starting a business in Malaysia, or anywhere for that matter, has never been easy. Most entrepreneurs have three options for funding a new business.
If you are lucky enough to have deep pockets, you can finance the business yourself. This provides you with the greatest amount of autonomy in how you run your company, but also entails the greatest risk to your finances. You can approach private investors or venture capital firms to provide funds. But this generally comes with trade-offs in sharing ownership as well as restrictions on your business practices. Or, you can apply for a business loan from a financial institution (FI). But business loans in Malaysia usually require you to put up collateral to guarantee the loan.
There is no solution that is entirely risk-free. Starting a business is, by nature, always a gamble. But let’s say that you don’t have the resources to fund the business yourself, nor are you willing to share ownership with investors that may dilute your business plan to suit their own needs. That leaves you with only the option of securing a business loan from a Malaysian FI.
Balancing the Risk
With the implementation of the Movement Control Order (MCO) as a result of the worldwide COVID-19 pandemic, entrepreneurs launching a new business in Malaysia have an additional risk. The depressed economy and markets mean that you have to adapt your business plan to account for the present circumstances.
If your business is in the retail sector, a digital platform may offer the best chance of success. If your company is service-oriented, you may have to change your day-to-day practices to provide safeguards to protect the health of your employees and customers. In other words, you have to balance the risks. And this may cause you to give extra attention to your sources of funding.
In today’s economic reality, getting a business loan from a bank in Malaysia may be your best choice. You will be able to retain ownership once the loan is repaid. And you will still have your personal finances to draw upon if need be to take care of yourself and your family.
And if you have already started your business and face additional challenges brought on by the MCO, Malaysian business loans can be a lifesaver.
SJPP Guarantees Business Loans in Malaysia
The Minister of Finance recognizes that private businesses play a crucial role in maintaining a strong economy during the current health crisis. They have established Syarikat Pembiayaan Perniagaan Berhad to specifically address the needs of these businesses and ensure their survival by offering several different business loan schemes.
These schemes are designed to help businesses in all sectors of industry maintain their viability by acting as a guarantor for business loans in Malaysia between owners and FIs.
If you have either a business that is struggling to remain profitable or a company that you want to launch, contact SJPP to see all the loan schemes that they can offer. It may be the best decision you make to ensure the success of your venture in these uncertain times.
