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Need To Fund Your Business? Try Micro-financing!

by Dewi Ridzuan. |


Do you own a small or medium-sized business? Have you got a steady flow of cash coming in but still not enough to execute that one idea you have? Try micro-financing!


Micro-financing is different from normal loans. Most SMEs don’t need hundreds of thousands of ringgit, so micro-financing helps with that! This option allows businesses to get loans with smaller interest charges and more realistic repayment schemes. If you’re wondering how to get funded, scroll on!


1. Ditaselia

Source: Kelly Sikkema


Who better to get funded by than the Ministry of Finance Malaysia themselves?


Founded in 2011, Dita Selia has been helping scale enterprises by working out the kinks that hold them back. Their expertise lies in many areas, some are like web design, cloud hosting, server co-location and more. Some of their clients have been like the payment gateway iPay88, Malaysia Airports, and of course the actual Malaysian Prime Minister’s Office!


Now don’t get pressured by their prestigious clientele, what’s important is that you can claim a grant worth up to RM5000 with them! They’re one of the sponsors for the SME Digitalisation Grant 2020. If you are looking to digitise your business and upgrade your tech facilities, this is the grant you want to get! You can apply for the grant under any of these areas; server hosting, web design & development and more.


Now, I know it says 2020, but they generally do give grants out every year or so, so just make sure to always keep your eyes peeled!


2. Funding Societies

Source: Negative Space


Don’t have collateral to apply for a bank loan? You could just go knocking on Funding Societies’ door!


With Funding Societies, SME’s can get funded up to RM100,000! You don’t need any collateral at all and they guarantee fast loan approval within 48 hours. No, they’re definitely not loan sharks as they’re registered and legit - I’ve done the due diligence for you. The interest rate can also be as low as 1.5% a month, and they have flexible repayment schemes as their tenure goes up to 18 months! Your business can also be as young as a puppy, so you just need to have at least been in operation for 6 months to be eligible.


For more context, Funding Societies was born in 2017 and is Malaysia’s first peer-to-peer (P2P) financing platform. P2P is known as debt crowdfunding too - multiple investors pitch in or raise funds the SME needs to scale their business. With Funding Societies, Malaysia is the first ASEAN country ever to regulate this, so wipe those worries away!



3. MPRC

Source: Expect Best


Do you work in the chemical industry and think you’re all alone? Fear not, as the Malaysia Petroleum Resources Corporation (MPRC) is here to aid you!


MPRC offers financing schemes to companies in the Oil & Gas industry. All micro-enterprises with viable businesses can apply, but of course, it’s a little bit more biased towards Oil & Gas companies. The financing amount also ranges from RM1,000 to RM5,000 so more startups, this is an ideal offer!


It is also easy for you to enquire about this scheme, as their customer service centres are also in well-known banks like Alliance Bank, Agrobank, CIMB and more! So you don’t need to venture far if you ever wanted to make a face-to-face query.


4. myBSN Micro Plus

Source: Pixa Bay


Bank Simpanan Nasional (BSN) has really got our backs, as they should as they’re a national bank!


If you need a loan between RM50,000 to RM250,000, you can go straight to the BSN Micro Plus website to apply! Albeit having a thorough and long application process (as they are a national agency), their way of micro-financing is open to many sectors! A few sectors are like in services, manufacturing, retail and wholesale.


If you’re wondering, the loan tenure is 1-7 years. It may sound like a short time, but generally, oil and gas companies can make quite big bucks so it sounds fair! Be sure to not miss out anything in their checklist so that you have a smooth application process!


5. Banks

Source: New Straits Times


Last but not least, banks are always there and they’re one one of the safest options with the widest financing scheme flexibility.


All major banks in Malaysia offer micro-financing or microcredit schemes. The difference here is that the interest rates really vary from bank to bank. It’d be easier for you to conduct business with your personal bank. However, do note that you don’t necessarily have to take a loan from your personal bank, as there’s nothing wrong in getting a loan from another company! The only catch is that in order to take a loan from a new bank, you’d have to open a whole new account with them.


There’s nothing wrong with getting a small cash injection as long as you’re confident that you can commit to a micro-financing loan. With smaller interest charges and more realistic repayment schemes, a micro-financing loan will definitely benefit you and your SME.

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