SME FINANCING PART 2: THE ONLY SUCCESS IS TO ADAPT AND KEEP APPLYING
SME financing is an important part of a business owner’s journey and budding entrepreneurs. To constantly grow businesses, many Malaysians opted to obtain SME financing facility from banks and their counterparts. However, not everyone will be able to pull through and pass the financing application due to various issues. Here are top 5 reasons why your SME financing application was rejected and potential solution.
It Is Just Too Soon
Banks and financial institutions usually prefer that the applicant for SME business financing to be in business for at least 3 years and above. Think about it, would you give a sizeable fund to someone who has just been in business for a few months? Well, banks are always here to help as long your business has been running for 3 years or more.
Bad Cash Flow
Banks usually will want to verify whether there are multiple transactions in your bank accounts. If the account remains stagnant most of the time, it is an indication that perhaps the business may not have the ability repay the SME financing in the future. Hence why it is imperative to ensure that you keep on top of your book-keeping and ensure that your vendor or client payment schedules are kept on time.
Nature of the Business
It is no secret that some ventures are just too risky and will unlikely see the light of the day no matter how brilliant it is. Banks count on you to be able to pay back your SME financing obligations, hence if your business fails, it also means the bank loses money.
Bad Personal Credit Score
Now, your business maybe doing well, however if your personal financial record is in the red, chances are you might not get any SME financing. Therefore, it is important to be vigilant about your credit ratings and to always settle debts promptly.
Poor Curation of Important Documents
Typically, there are many documents required to be submitted for SME business financing application. This is especially the case for private limited (Sdn Bhd) companies. If you were doing a poor job of curating or keeping your documents in order, you may miss out some documents that in turn leads to your application being rejected. Do not wait until it is too late, click here to learn more about the typical documentations you need to apply for SME business financing.
Lastly, instead of the “apply and see what happens” method, a wiser choice would be to speak to a SME Business Financing expert about it. Even if they found out that you are currently not eligible or unable to pass the application, they can give you advise on how to curate your application so that you may succeed in the future.
CIMB SME Quick Biz Financing/-i
It is no secret that CIMB Bank has always been at the forefront of SME financing, and offers some of the best market terms. CIMB’s SME Quick Biz Financing/-i provides working capital financing without collateral to improve the company’s business cash flow. It also features a hassle-free application process with minimal documentation for a financing sum of up to RM1 million. The financing facility is open to all Malaysian owned SMEs who have been in operation for a minimum of 3 years.
How do you go about applying for this SME Quick Biz Financing/-i you ask? The good folks at CIMB Bank could not have made their application process any easier.
All you have to do is to visit their SME Quick Biz Financing/-i website and drop your details to register your interest and their friendly consultants will reach out to you. How easy is that? Simply click here to find out more.
Now you are all set to grow your business to greater heights.