Every business owners dream to get working capital to expand their business or sustaining the current operation especially during a hard time such as MCO. Business Loan help to get expand your business fast. Financial institutions have a strict requirement when applying for SME loan in Malaysia and with COVID-19 still lingers in 2021, it going to be even tougher. Not only that, with good credit history and financial positioning does not guarantee you a security of the funds you need if you’re not well prepared in answering some questions from the lender.
These questions are the “make it or break it” situation when applying for SME loans. The lenders will be able to understand your company’s current financial situation from these questions and creating a mutual relationship with each other to avoid scepticism.
Here are some of the questions when applying for SME loan in Malaysia so you can answer it confidently!
1. Why do you need working capital?
Oftentimes, this is the first and most important question that every lender will always ask especially dealing with SME loans in Malaysia. Financial institutions need to know the purpose of your working capital as the fund is large. A working capital leads to sustaining and expanding the business so a business plan is crucial when pitching to the lender. This allows more valid and concrete reasoning to increase the trust between each other without any “fishy” matter.
2. How much capital amount do you need?
The amount of working capital will contribute significantly to the business operation. Hence, to expand or sustain the current business, the banks or lenders must know the exact amount of expansion or equipment. The reason being is that if you need working capital, they must know how will you spend accordingly. With the SME loan at stake, it’s better for the borrower to be transparent and avoid hidden agenda.
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