Malaysia is witnessing numerous startups and small businesses coming up in recent times. Starting with a business may not be as simple as it is on papers.Having access to enough money when you are entering the world of business is crucial. In fact, many successful businesses are running by raising funds from a variety of sources. One such source is a small business loan which is provided by various banks. These loans can also be helpful in expanding the limits of your business.
Here are a few of the ways in which a small business loan can be helpful:
- A small business loan can fetch you a sum of RM50,000 to RM300,000. You get 5 full years to repay this loan, which reduces the burden that comes with high instalments.
- Government Ministries such as Ministry of International Trade & Industry (MITI) offer several programmes for the betterment of Small-Medium Enterprises (SMEs).
- These programmes help you with capital financing as well as in the development of efficiency, productivity and competitiveness of your business.
- A business loan provides you with easy access to cash flow that can allow for expansion of the business.
- Smaller business loans can help improve your creditworthiness.
- It can help with making payments to service providers in cases of delayed payments from clients
- It can offer working capital to expand or update the inventory required to meet bulk-orders.
- It can help in acquisition of equipment required to boost productivity or output of the business.
Loans aren’t always something to steer clear off. Often, a loan can be the most effective way in securing the working capital required to make a business grow.