know your business FINANCING accessibility BY EVE FAN MY CASHFLOWZ SDN BHD 7 CRITERIA TO SECURE YOUR BUSINESS FINANCING WITHIN 30 DAYS WITHOUT ANY GUESSWORK DI SCOVER THE 7 CRI TERI A ON HOW TO GET YOUR BUSI NESS FI NANCI NG THROUGH BANKS 1. COMPANY STRUCTURE Private Limited (Sdn Bhd) or Sole Proprietorship (Enterprise or Partnership). Banks prefer private limited companies as it has a more stable structure with third parties involved, i.e. auditors, accountants and tax agents. Sole proprietorship is tied to the individual proprietor and is less preferred. 2. TYPE OF I NDUSTRY Majority of banks prefer trading type of businesses which involves sales and purchase of products as well as services. The industries that most banks avoid are high risk industries like construction, money lending, gaming and etc. The definition of Small and Medium Enterprises (SMEs) are tabled below for different industries. Different categories will have different timelines and loan-ability amounts. In general, micro to small enterprises involves less stringent approval processes and thus shorter time for approvals. MANUFACTURING SERVICES AND OTHER SECTORS Source: SME Corp 3. YEARS OF ESTABLI SHMENT For companies, the minimum requirement for most business loans would be 3 years from establishment date. MY Cashflowz Sdn Bhd 7 CRITERIA TO SECURE YOUR BUSINESS FINANCING WITHIN 30 DAYS WITHOUT ANY GUESSWORK DI SCOVER THE 7 CRI TERI A ON HOW TO GET YOUR BUSI NESS FI NANCI NG THROUGH BANKS 4. CREDI T TRACK RECORD The banks look at BOTH the personal and company credit track record i.e. payment patterns and etc. as banks need to assess the credit worthiness. Do avoid having default payments, delayed payments, legal cases, trade references and etc. 5. BANK STATEMENTS Most banks will require latest 6 months bank statements of the business' most active bank accounts. The company bank statements must tally with the reported revenue. 6. AUDI TED FI NANCI AL STATEMENT As mentioned in Item No. 1, Private Limited Companies (Sdn Bhd) is preferred. The banks need to evaluate the 3 years audited financial statements to assess your amount of loans that you can borrow. Failure to file your financial statements within 18 months from the date of incorporation; and subsequently, within six months of its financial year end will attract a maximum penalty by Register of Companies (ROC) of up to RM500,000. 7. I NCOME TAX For Private Limited Companies (Sdn Bhd), it is required to make income tax payments which in return allows businesses to take loans from financial institutions. The standard corporate tax rate is standard at 24%. For Small and Medium Enterprises (SMEs) which is companies with paid up capital less than RM 2.5 Million and annual sales not more than RM 50 Million, the rate is at 17% for first RM 600,000 (starting from 1st January 2020). Penalty for Late Payment by Inland Revenue Board (IRB) : If the balance of tax payable is not paid by the due date, a penalty of 10% will be imposed on the outstanding amount. If the tax payable and penalty is still outstanding within 60 days from the due date, an additional penalty of 5% will be imposed on the tax and penalty outstanding. IF YOU WOULD LIKE TO KNOW HOW YOU CAN SECURE YOUR BUSINESS LOANS WITHIN 30 DAYS, WHATSAPP EVE AT 019-2277 019 Eve Fan is a serial entrepreneur for the past 10 years and have helped multiple Small and Medium Enterprises (SMEs) secure more than RM 10 Million of business loans to expand their businesses, solve their cashflow issues, and etc. MY Cashflowz Sdn Bhd www.facebook.com/mycashflowz
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