Syarikat Bumiputera di Malaysia menghadapi pelbagai cabaran dalam mendapatkan dana pembiayaan, termasuk kekurangan rekod kewangan yang teratur, keperluan kredit dan cagaran yang sukar dipenuhi, dan kekurangan pengalaman dalam pengurusan perniagaan. Selain itu, banyak syarikat ini beroperasi dalam sektor yang dianggap berisiko tinggi dan mempunyai akses terhad kepada jaringan pelaburan. Ramai diantara mereka yang sedang menghadapi cabaran menguruskan aliran tunai akibat pembayaran lambat dan peningkatan kos ketika ini. Dengan suntikan dana pembiayaan daripada inisiatif i-WCPF, anda kini boleh mempercepatkan pemulihan perniagaan anda dan melindungi perniagaan daripada kemelesetan ekonomi.

Inilah sebabnya mengapa perniagaan anda memerlukan Pembiayaan patuh Shariah melalui Inisiatif i-WCPF lebih-lebih lagi pada waktu ini:

1. Dapatkan pembiayaan tanpa dokumen kredit yang rumit

Tidak seperti jenis pembiayaan yang lain, penilaian kredit melalui Inisiatif i-WCPF untuk mendapatkan penyelesaian pembiayaan adalah berdasarkan kemampuan pembayaran pembeli anda dan bukan hanya mengikut kedudukan kredit anda. Ini membolehkan kami membiayai perniagaan anda walaupun status kredit anda mungkin tidak diterima oleh institusi perbankan atau kewangan lain. Kami hanya mengenakan syarat bahawa pembeli korporat anda mempunyai sejarah melunaskan bayaran yang baik dan mempunyai kemampuan untuk membayar sebelum tempoh invois matang.

Pembiayaan patuh Shariah melalui Inisiatif i-WCPF membolehkan anda memanfaatkan kelayakan kredit pembeli korporat anda yang besar untuk mendapatkan pembiayaan.

2. Tidak memerlukan aliran tunai keluar daripada perniagaan anda

Berbeza dengan pinjaman yang biasa, anda tidak perlu mengeluarkan wang tunai setiap bulan untuk membayar caj pinjaman pada jumlah pokok dan faedah atau perlu menyediakan tunai untuk menangani kos tambahan seperti yuran perundangan yang mahal dan seumpamanya. Sebaliknya, segala faedah pembiayaan i-WCPF akan ditolak daripada dana yang dikeluarkan kepada anda sebagai bayaran awal dan pembayaran utama dilakukan oleh Pembeli secara langsung.

Dengan Pembiayaan patuh Shariah melalui Inisiatif i-WCPF, anda boleh mendapatkan aliran wang tunai dan tidak perlu risau mengenai pembayaran semula kerana mudah dan cekapnya program ini.

3. Pembiayaan yang cekap

Jika dibandingkan dengan pinjaman tanpa cagaran, Pembiayaan patuh Shariah melalui Inisiatif i-WCPF adalah kaedah yang berkesan untuk membiayai perniagaan anda kerana ia hanya memerlukan invois. Pertimbangkan senario berikut:

Senario A: Pinjaman Jangka Panjang

Senario B: Pembiayaan patuh Shariah melalui Inisiatif i-WCPF

Syarikat A mengambil pinjaman bersih (tanpa cagaran) dengan kadar faedah 8% setahun atau 0.67% sebulan. Syarikat A perlu membayar faedah sebanyak 0.67% setiap bulan untuk sepanjang tahun walaupun mereka tidak menggunakan kemudahan tersebut selama beberapa bulan.

Syarikat B mengambil Pembiayaan patuh Shariah melalui Inisiatif i-WCPF pada ~1% sebulan. Tetapi Syarikat B hanya perlu menggunakan Pembiayaan patuh Shariah melalui Inisiatif i-WCPF untuk 2 invois sahaja pada tahun itu, mereka hanya perlu membayar 1% untuk setiap bulan bergantung pada tempoh invois (misalnya, masing-masing 2 bulan iaitu faedah 2% ditolak daripada invois masing-masing). Syarikat B tidak akan diminta untuk membayar faedah selama 8 bulan ketika kemudahan itu tidak digunakan. Caj faedah pembiayaan invois ini hanya dikenakan semasa ia digunakan dan pembiayaan ini patuh Syariah, mengikut sistem Tawarruq

4. Lebih murah daripada apa yang anda fikirkan

Jika dibandingkan dengan Overdraf Bank, Pembiayaan Invois sebenarnya lebih murah dan mudah digunakan. Pertimbangkan contoh berikut:

Senario A: Overdraf Bank

Senario B: Pembiayaan patuh Shariah melalui Inisiatif i-WCPF

Untuk kemudahan Overdraf yang bernilai RM 1,000,000, pihak Bank akan meminta usahawan untuk memberikan jaminan seperti Deposit Tetap sebanyak RM 500,000. Ini bermaksud anda hanya akan meminjam RM 500,000 dan bukan menikut jumlah kemudahan yang asalnya. Walau bagaimanapun, caj pembayaran yang dikenakan adalah berdasarkan jumlah kemudahan yang berjumlah RM 1,000,000. Oleh itu, dalam contoh ini, anda membayar faedah dua kali ganda untuk meminjam RM 500,000.

Dengan Pembiayaan patuh Shariah melalui Inisiatif i-WCPF, anda hanya dikenakan bayaran sebanyak RM 500,000 yang telah anda pinjam dan anda juga tidak perlu membayar caj tersembunyi! Caj faedah pembiayaan invois ini hanya dikenakan mengikut penggunaan semasa anda.

5. Kembangkan perniagaan anda dengan lebih pantas

Dengan kemudahan akses kepada wang tunai, anda kini mampu membeli lebih banyak bahan mentah dan menerima lebih banyak pesanan daripada pelanggan anda. Lebih-lebih lagi, anda dapat menawarkan syarat pembayaran lebih lama kepada pelanggan besar korporat anda yang merupakan strategi jualan penting dalam masa sukar ini.

Kemudahan akses aliran tunai yang diberikan oleh i-WCPF dapat mempercepatkan perkembangan perniagaan anda bagi fasa pemulihan ini.

6. Pembiayaan Lembaran Imbangan

Pembiayaan patuh Shariah melalui Inisiatif i-WCPF yang berkaitan dengan invois tidak ditafsirkan sebagai pinjaman dan ia tidak akan mempengaruhi nisbah hutang kepada ekuiti anda. Dengan Pembiayaan patuh Shariah melalui Inisiatif i-WCPF, anda boleh mempercepatkan pendapatan wang pendahuluan pada resit berjadual tanpa peminjaman dana. Oleh itu, ia tidak mempengaruhi jumlah angka hutang anda dan memastikan status kredit anda berada dalam keadaan baik – ini boleh bantu memudahkan permohonan kemudahan kredit daripada institusi bank pada masa akan datang.

Kriteria kelayakan untuk memohon Pembiayaan patuh Shariah melalui Inisiatif i-WCPF

Perniagaan anda menyediakan perkhidmatan atau membekalkan barang kepada syarikat swasta dan Agensi Kerajaan Malaysia, termasuk Kementerian, Jabatan, Anak Syarikat Kerajaan dan syarikat berkaitan kerajaan atau ‘GLC’ dengan syarat bayaran terma kredit (transaksi antara perniagaan)Perniagaan anda mempunyai rekod prestasi yang baik dengan pihak Kerajaan atau swasta sepanjang tempoh berurusan

Hubungi kami supaya kami dapat menolong keperluan pembiayaan perniagaan anda.

Bumiputera akan diberi peluang yang lebih luas melalui pengembangan budaya keusahawanan di pelbagai lapisan masyarakat, untuk membentuk Bumiputera sebagai sebuah bangsa yang berorientasikan perniagaan. Usaha ini akan diperkukuh secara menyeluruh dengan sokongan dan kerjasama daripada pelbagai agensi yang terlibat dalam pembangunan usahawan. Namun, kebanyakan syarikat Bumiputera mengalami masalah tidak mempunyai akses yang mudah kepada dana pembiayaan untuk terus beroperasi.

Invois sedia ada melibatkan tempoh bayaran yang lama malah terdapat bayaran yang terpaksa ditangguhkan oleh pelanggan melalui polisi yang telah ditetapkan, ditambah pula dengan pengurangan jualan yang mendadak menjadikan kedudukan aliran tunai terkesan teruk bagi perniagaan. Walaubagaimanapun, jurang aliran tunai ini dapat dikurangkan dan kelangsungan perniagaan lebih terjamin sekiranya pembiayaan alternatif yang mudah diakses disediakan. Pada kebiasaannya, usahawan syarikat Bumiputera lebih cenderung pergi ke bank untuk mendapatkan pembiayaan perniagaan namun sektor perbankan juga menghadapi cabaran tersendiri untuk memberikan kemudahan pembiayaan patuh Shariah kepada mereka. Maka, Inisiatif i-WCPF telah diperkenalkan secara berfasa untuk membantu meningkatkan aliran tunai perniagaan, terutamanya kepada golongan usahawan Bumiputera yang berurusan dengan syarikat swasta dan Agensi Kerajaan Malaysia, termasuk Kementerian, Jabatan, Anak Syarikat Kerajaan dan syarikat berkaitan kerajaan atau ‘GLC’.

Memperkenalkan Inisiatif i-WCPF – Rakan pembiayaan alternatif baru anda.

Penyelesaian Pembiayaan Invois patuh Shariah melalui inisiatif i-WCPF adalah pendekatan optimum dan fleksibel yang membantu meningkatkan aliran tunai perniagaan anda. Dengan penyelesaian Pembiayaan Invois patuh Shariah melalui Inisiatif i-WCPF, anda boleh mendapatkan pembayaran awal serta-merta berdasarkan jumlah invois anda. Anda tidak perlu risau lagi dengan tempoh bayaran yang lama dari pelanggan anda, malah mampu mengawal sepenuhnya jumlah bayaran daripada penghutang anda tanpa perlu risau!

Kriteria kelayakan untuk penyelesaian Pembiayaan Invois Melalui Inisiatif i-WCPF

Mendapatkan pembiayaan tidaklah sukar. Untuk memudahkan permohonan pembiayaan, kami hanya memerlukan anda memenuhi beberapa kriteria mudah seperti berikut:

• Minimum 51% pegangan saham Bumiputera dalam syarikat;
• Status Bumiputera yang disahkan oleh Kementerian Kewangan atau yang setaraf dengannya (jika berkenaan);
• Ketua Pegawai Eksekutif/ Pengarah Urusan/ majoriti pengurusan tertinggi syarikat adalah Bumiputera;
• Syarikat mesti didaftarkan di Malaysia di bawah Akta Syarikat 2016.
• Bukan Syarikat milikan tunggal (Enterprise), Konglomerat, Syarikat Tersenarai Awam dan anak syarikat, Syarikat Berkaitan Kerajaan (GLC) dan Syarikat Pelaburan Berkaitan Kerajaan (GLIC) dan anak syarikat, syarikat berkaitan kerajaan negeri dan anak syarikat, koperasi, yayasan, persatuan dan organisasi.

Hubungi kami supaya kami dapat menolong keperluan pembiayaan perniagaan anda.

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Ketahui bagaimana Inisiatif i-WCPF dapat mencipta aliran tunai untuk perniagaan anda.

1. Permohonan pembiayaan bermula daripada RM10,000  sehingga RM1,000,000

Permohonan untuk penyelesaian pembiayaan patuh Shariah melalui Inisiatif i-WCPF bermula daripada RM 10,000 sehingga RM1,000,000. Jadi, semakin besar nilai invois anda, semakin besar jumlah pembiayaan anda.

2. Manfaatkan invois daripada jualan anda untuk mendapatkan pembiayaan

Tahukah anda bahawa anda boleh memanfaatkan invois daripada jualan anda untuk mencipta lebih banyak aliran tunai? Betul! Penyelesaian Pembiayaan Invois patuh Shariah melalui Inisiatif i-WCPF bukan sahaja membolehkan aliran tunai perniagaan anda diperbaiki tetapi juga boleh membantu mengelakkan terma bayaran yang kian ditangguhkan, sekaligus mengurangkan kemungkinan timbulnya hutang lapuk. Untuk mula memohon pembiayaan daripada kami, anda hanya perlu melengkapkan pesanan jualan anda, muatnaik invois anda pada platform CapBay, dan kami akan menawarkan bayaran awal sehingga 85% daripada nilai invois anda serta-merta setelah dokumentasi disahkan lengkap.

3. Proses permohonan yang cekap

Selalunya, memohon pembiayaan merupakan tugas yang melecehkan kerana proses yang panjang dan rumit. Sebagai contoh, sebuah bank biasanya mengambil masa sekitar 1-3 bulan untuk memproses permohonan kemudahan pinjaman bergantung kepada kerumitan kes tersebut. Oleh itu, anda terpaksa menanggung masa yang lama sebelum mendapat kelulusan permohonan dan mendapatkan modal pusingan untuk perniagaan ada. Kami memahami perkara ini dan sebab itulah kami akan mengambil masa sehingga 7 hari bekerja saja untuk menguruskan permohonan anda; dengan syarat bahawa dokumen anda lengkap!

4. Terima wang pendahuluan dalam masa 48 jam setelah diluluskan

Setelah permohonan untuk bayaran awal anda diluluskan melalui Inisiatif i-WCPF, kami akan menyalurkan jumlah yang dipohon untuk perniagaan anda secepat 48 jam selepas notifikasi kelulusan. Semudah itu!

5. Bayaran perkhidmatan terendah tanpa kos tersembunyi

Inisiatif i-WCPF bertujuan untuk menyumbang kepada pengitaran ekonomi syarikat Bumiputera dengan menyediakan penyelesaian pembiayaan patuh Shariah serendah 1% atas nilai invois. Kami berharap untuk menyediakan pembiayaan yang boleh diakses oleh kalangan usahawan Bumiputera dengan mudah.

6. Tiada cagaran diperlukan

Lazimnya, proses memohon kemudahan pinjaman daripada bank juga memerlukan cagaran tertentu. Tambahan pula, adalah agak sukar untuk mandapatkan kelulusan  bagi pembiayaan terutamanya jika perniagaan anda baru mula beroperasi untuk beberapa tahun sahaja. Kami menyediakan pembiayaan berdasarkan reputasi syarikat anda dan kelayakan kredit pelanggan anda. Oleh itu, anda tidak perlu risau tentang cagaran apabila anda memohon kemudahan bayaran awal daripada kami.

7. Fleksibiliti pembiayaan

Pembiayaan patuh Shariah melalui Inisiatif i-WCPF memberi anda kawalan penuh untuk memutuskan sama ada anda mahu kami menawarkan bayaran awal untuk semua invois anda atau hanya beberapa yang terpilih. Kami tidak sama seperti institusi pemfaktoran yang lain di mana anda biasanya harus menggadaikan invois untuk jualan anda kepada institusi pemfaktoran tersebut bagi mendapatkan dana – kami faham bahawa ini mungkin mengganggu hubungan niaga dengan pelanggan anda.

Justeru, jika anda membekalkan barang/menyediakan perkhidmatan kepada pelanggan besar secara kredit dengan jumlah invois yang besar, anda boleh memilih penyelesaian Pembiayaan patuh Shariah melalui Inisiatif Invois i-WCPF untuk mendapatkan bayaran awal bagi invois berjumlah besar ini.

Selain itu, penyelesaian pembiayaan patuh Shariah melalui Inisiatif i-WCPF menawarkan fleksibiliti yang lebih tinggi bagi dalam penggunaan modal pusingan anda, malah lebih menjamin aliran wang tunai perusahaan anda supaya cukup untuk membayar perbelanjaan operasi perniagaan sambil memenuhi keperluan pelanggan anda yang lain.

8. Fleksibiliti permohonan dalam talian

Permohonan pembiayaan sepatutnya boleh dipercepatkan jika anda mempunyai pilihan untuk menghantar semua dokumen serta invois secara dalam talian berbanding menghantar dokumen secara fizikal dan perlunya melawat pihak pembiaya berkali-kali.

Melalui inisiatif di bawah TERAJU ini, anda boleh memohon bayaran awal melalui saluran dalam talian dengan cepat. Anda mempunyai pilihan untuk memuatnaik invois dan juga menyemak status permohonan anda dengan hanya beberapa klik dari skrin komputer riba anda.

Kesimpulan

Cabaran untuk mengembangkan lagi perniagaan pada masa kini amat memberi kebimbangan. Namun, dengan inisiatif i-WCPF di bawah TERAJU ini dapat meningkatkan peluang kepada para usahawan Bumiputera untuk terus maju dan berdaya saing di peringkat global. Gunakan peluang ini dengan bijak untuk menambahbaik situasi perniagaan anda dan mengekalkan aliran tunai yang sihat biarpun pada waktu yang mencabar ini. Hubungi kami hari ini dan ucapkan selamat tinggal kepada masalah pembiayaan perniagaan anda.

Hubungi kami supaya kami dapat menolong keperluan pembiayaan perniagaan anda.

In today’s volatile business landscape, where disruptions from geopolitical risks, fluctuating interest rates, and shifting customer preferences are commonplace, maintaining a competitive edge is more challenging than ever. Traditional differentiators like excellent customer service and competitive pricing have become table stakes. To truly stand out, businesses, especially SMEs, need to leverage innovative financial strategies that ensure both operational resilience and growth.

For Malaysian SMEs—which account for 98.5% of all businesses and contribute 38.2% to GDP—the pressure to innovate while navigating capital constraints is immense. In this context, Supply Chain Finance (SCF) emerges as a crucial tool to ease liquidity concerns, enabling businesses to manage cash flow more effectively and invest in growth, even during periods of uncertainty.

The SME Financing Gap: A Critical Issue

The global trade finance gap reached a staggering USD 2.5 trillion in 2022, with SMEs bearing the brunt of the shortfall—45% of all rejected finance applications were from small and medium enterprises. This is particularly problematic for SMEs engaging in international trade, where factors like political instability, currency volatility, and a lack of collateral compound financing difficulties.

In Malaysia, this financing gap poses a significant challenge for SMEs looking to scale. Traditional bank financing is often unavailable or insufficient due to perceived risks and stringent lending criteria. SMEs in Malaysia need alternative financing solutions that not only address immediate cash flow needs but also enable long-term competitive advantage.

How Supply Chain Finance Works 

Supply Chain Finance (SCF) is a collaborative solution where a third-party financier pays a supplier’s invoice on behalf of the buyer, allowing suppliers to receive payments earlier while enabling buyers to extend their payment terms. This financing is typically offered at lower costs compared to traditional lending options, as it leverages the buyer’s creditworthiness rather than the supplier’s.

The SCF process involves a seamless, technology-driven transaction, where buyers approve invoices, and financial institutions disburse payments to suppliers. This automated process improves transparency, reduces administrative burdens, and strengthens supplier relationships, creating a win-win situation for both parties.

Figure: SCF process flow.

The Competitive Edge: Why SCF is More than Just a Financing Tool

The primary goal of a supply chain is to manage the process from product creation to delivery, but it also offers significant competitive advantages. A well-managed supply chain promotes innovation, optimises cost efficiencies, boosts profitability, and enhances customer experience. By streamlining operations, businesses can improve their market position and customer satisfaction, paving the way for long-term success.

Extending Payment Terms

Supply chain finance enables buyers to extend payment terms, allowing them to delay payments while ensuring suppliers receive funds promptly. This enhances working capital management and optimises cash flow without damaging supplier relationships. In 2023, the late payment rate in Malaysia reached approximately 30%, highlighting the challenges many suppliers face in receiving timely payments. By leveraging SCF, businesses can mitigate the negative impacts of delayed payments, fostering stronger connections and supporting a healthier supply chain.

Quick Access to Business Funds

Supply chain financing offers SMEs a faster route to business financing compared to traditional banks. Unlike conventional lenders, SCF prioritises the strength and longevity of relationships within the supply chain. By evaluating the mutual dependence between buyers and sellers, SCF provides financing based on trust and collaboration rather than solely on credit scores or financial history. A recent survey found that 90% of banks identified “Anti-Money Laundering/Know Your Customer requirements” as a major barrier to expanding trade finance, making SCF a more accessible option for SMEs. 

Improved Cash Flow

SCF positively impacts SME cash flow, enhancing credit ratings and enabling businesses to seize growth opportunities. SME financing in Malaysia is especially crucial during supply chain disruptions and demand slowdowns, helping to maintain working capital and liquidity when traditional lenders may be less willing to extend credit. Additionally, SMEs in Malaysia acting as anchors can source materials at lower costs, further improving profit margins and cash flow.

Studies show that businesses that regularly review their cash flow enjoy higher survival rates—those that monitor it monthly have an 80% survival rate compared to just 36% for those that do so annually.

Comparing Financing Options: SCF, Traditional Banking, and Factoring

Understanding the various SME financing options available can help SMEs make informed decisions. The following table summarises key distinctions between supply chain financing (SCF), traditional banking, and factoring. You can also check out our blog, “SME Financing 101: Understanding Your Options,” to explore all the financing options available to you.

Leveraging Technology-Driven Solutions to Propel Business Growth

The rise of late payments poses a significant threat to supply chain stability, particularly for suppliers. This challenge necessitates a reevaluation of how technology can facilitate timely payments and accelerate cash flow for suppliers.

Technology-driven solutions, such as supply chain finance, dynamic discounting, and accounts receivable financing, empower suppliers to receive prompt payments on their invoices. A survey revealed that nearly all bank and payments executives view innovation as essential for modernising payment processes. Furthermore, 85% believe their organisations will face a significant disadvantage if they do not invest in technology.

Enhance Your Competitive Edge by Embracing Supply Chain Finance

Supply Chain Finance is not just a solution for immediate financing needs; it’s a strategic lever that can transform an SME’s entire business model. By improving cash flow, reducing costs, and building stronger supply chains, SCF enables SMEs in Malaysia to thrive in an increasingly competitive and uncertain market.

As global trade continues to evolve, embracing SCF could be the key to unlocking new growth opportunities, ensuring resilience, and gaining a competitive edge that’s sustainable in the long run.

Interested to learn more about Supply chain Financing?

*This article is not meant to recommend CapBay products or be used as a tool to make any investment or financial decisions. Product recommendations must be independently evaluated before you invest. Any product recommendation by CapBay must not be regarded as financial planning or financial advice.

Hope. 

We are going through an extremely tough time due to the spread of COVID-19 and HOPE is all we have to keep on moving. As an SME owner, you are gripped with panic, fear, and doubt; anticipating the worst for your business. Over the past few weeks, article headlines continue to instill fear among us about the ultimate repercussions in the aftermath of COVID-19.

Bursa Malaysia continues to slide to 11-year low – by The Star, 20th March 2020

Crude surplus sends oil plummeting to a 17-year low – by FMT news, 30th March 2020

Many small retailers expected to close shop soon – by The Star, 31st March 2020

To know more about our economic status, read COVID-19 Outbreak: Is the Malaysian Economy in Trouble?

Aids and Assistance to Help SMEs to Survive

All SMEs are more or less going through a shortage of cash due to the implementation of the Movement Control Order (MCO). People’s movements are restricted, shops and offices are shut down, eventually impacting businesses of all nature. The following aids and assistance are a way to restore hope in SMEs to fight through this difficult time.

First Economic Stimulus Package

The Government is working very hard to help SMEs to sustain in the market. During the early onset of COVID-19 outbreak in Malaysia, the Government has initiated to cap your business losses by introducing an Economic Stimulus Package 2020 on 27th February 2020. 

The Package intends to aid affected businesses such as tourism-related businesses, hotels, airlines, tour companies, manufacturing, and even construction. The Government hopes to regain financial stability through this Package to sustain this volatile economy. 

Moratorium on Loan Repayments

To further instill hope and promote confidence among the business owners and homeowners, Bank Negara Malaysia (BNM) has offered a 6-month breather of bank loans to both businesses and individuals. Now, you can defer your business loans and your home loans for 6 months beginning from 1 April 2020. This will help you to focus on more important expenses to survive through the volatile market. However, the catch is, if you decide to defer your loan, simple interest will be added to your outstanding loan during the deferred period. So, in the end, you will be paying more than you were initially anticipating which will eventually add to your overall cost.

Second Economic Stimulus Package

On 27th March 2020, RM 250 Billion worth PRIHATIN Economic Stimulus Package was announced by the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin. It is an effort to continue stabilizing both the household and financial infrastructure of the country. 

The Government has allocated a fund of RM 4.5 Billion to SMEs and micro-entrepreneurs who are struggling to survive during this turbulent economy. The Government has also deferred the income tax for businesses by 3 months, starting from 1st April 2020.

Know more about the Benefits of the PRIHATIN Economic Stimulus Package for business industries here.

Special Package for SMEs

Just 10 days after the PRIHATIN Economic Stimulus Package, our Prime Minister, Tan Sri Muhyiddin Yassin announced this special package on 6th April 2020. The Package will specifically help those SMEs who have experienced extreme losses due to the MCO implemented by the Government. 

The RM 10 Billion Special Package includes wage subsidies, financing assistance, moratorium and discount on office rentals to help your business recover from the sharp impact of COVID-19.

Know more about the Special Package for SMEs here.

Is the Help Enough for All Businesses to Survive?

Probably not! And the possible reason may surprise you. According to the SMEinfo Portal (a centralized online information repository on SMEs), there is an estimate of 907,065 registered SMEs in Malaysia. The Government cannot provide sufficient financial assistance to help all the businesses to sustain in the market even with the latest announcements of initiatives. 

SME Association of Malaysia (SME Malaysia) has recently conducted a survey on the current financial situation of SMEs. It was a shock to find out that the Government assistance through the Stimulus Packages can only help about 26.3% of SMEs to sustain their business despite the additional disbursement of RM 100 Billion of financing to SMEs under the PRIHATIN Economic Stimulus Package. The remaining 73.7% of SMEs have yet to apply for any special relief funds or alternative financing to sustain in the market. Hence, we need to support each other to survive this dark time. 

The secret to survival is to maintain a healthy cash flow for your business. With banks easing up the financing process, you might be hoping that you can manage funds to recover your business during this period. 

But, it is FAR from easy. Let us find out why!

Roadblock for SMEs to Raise Funds

You are in pursuit of survival to pass though this bad phase of the pandemic. Maybe you are hoping to survive this critical time by taking financing from banks. Unfortunately, it is not that easy. Tourism, airlines, and retailers of non-essential goods are currently considered as high-risk businesses by the banks as they are the most impacted by COVID-19. Thus, banks are restricting financing to these companies as they are considered to have a higher chance of defaults on their loan repayments.

On top of that, most commercial banks are disbursing the Economic Stimulus Package to their existing clients only. This is restricting resources for SMEs who do not have any existing financing records with their banks. This has put your business in a very tight position. It seems like there are ample resources to raise funds for your business, but when you look closely, the chances seem to get thinner with every step. 

Then again, getting funds approved by the banks is never easy. You need to provide a long list of documents, pledge certain collaterals such as physical assets or even cash while enduring a long waiting period to acquire your fund. Unfortunately, time is not a luxury that you have right now. You need a quick and easy way of financing to keep your business moving. In such a scenario, you might consider alternative financing to get out of this tough spot.

How CapBay can be your SOLUTION!

Right now, you are probably experiencing a sharp drop in sales and longer payment terms from clients. Moreover, all your cash flow is slowly draining as you have to pay for your usual expenses such as rent, staff salaries, and other overhead costs.

In such instances, even if you get new orders, you may not have the fund to complete it right away. This is where CapBay comes in to help you. CapBay is a Supply Chain Financing (SCF) company that offers Invoice Financing Facility to businesses. We understand that you are going through a critical phase but with our easy and quick financing solution, we can help you to survive in your time of need.

Say, when you invoice a client after completing an order, rather than waiting for a long payment term to get your money, you can simply come to us. We offer 80% instant cash based on your invoice. Plus, our services do not have any setup costs or hidden costs to pile up on your expenses.

This extra fund will fulfill your need for emergency cash. You will literally leverage your sales invoice to get money. This will not only shorten your payment term from customers but will give you enough cash to sustain the volatile market. 

So, don’t lose hope. Survive this time of uncertainties by making Smart Financing Choice. We are just a click away. Our consultants are here to help you if you have any questions.

As a business owner, you are making important decisions in your business, every day. Many of those decisions depend on your capacity to raise funds. Here’s when financing comes to play. Striking a balance between equity and financing, you have to know when you need short term financing and when you need long term financing.

In our previous article, we have revealed the Most Common Reasons Why Malaysian SMEs Seek Business Financing. The article also discloses the Top 3 Short Term Financing available to fund your business. However, short term financing cannot solve all financing needs. 

Let’s look at 8 distinct scenarios when short term finance is the answer!

1. Urgent Need for “Quick Cash”

Unexpected expenses are a part of running a business. You may need the cash to fund an unfinished project or to pay for sudden legal expenses. To get quick cash funding, you can apply for short term financing until such emergency surpasses.

You have two choices; you can apply for bank financing which may take a few weeks to over a month depending on how quickly you arrange the documents and collateral to apply for the financing. Or you can opt for alternative financing. You only have to provide a few documents supporting the proof of your business ownership, your cash flow status and your credit score to make the application, which can be approved as fast as 3 days.

2. Having Difficulty in Cash Flow Management

According to SME Corp Malaysia, 35.9% of Malaysian SMEs face cash flow problems and the most common problem is delayed payments from their clients. If your business sells on credit, you need to wait for an average payment period of 90 days and even up to 120 days to receive your payment from the clients. During this waiting period, your business often runs short of liquid cash to sustain daily business expenses and attend to new clients. Short term financing such as invoice financing can help you to finance your business needs during this temporary period.

To further enhance your cash flow, read 12 Ways to Improve Your Cash Flow Cycle in 2020

3. If You are a Young Business, Operating for Less than 1 Year

When you are a young business, your investment is more than your earnings. While you are chasing for more clients, a small infusion of cash can help your business to continue operating. Besides, you need extra funds to cater to your start-up costs like paying the deposit for your office space and fulfilling market demand. Short term financing can help you to get this extra cash boost until your business is ready to run in full force.

4. Need to Purchase Equipment or Inventory

As your business grows, your equipment becomes older. Sometimes, the equipment starts malfunctioning or becomes outdated and you need to buy a new one to replace it. And, if your business is growing, you must need more inventory to attend to your increased pool of clientele. Use short term financing to fund these needs efficiently.

5. Cash Shortage during Holiday Seasons

Holiday seasons are an excellent time to maximize your sales. People’s mood is elevated, and their pockets are full. However, you need to gear up for the festive seasons. You need more inventory and additional staff to serve the large volume of clients. You may also need to spend on advertisements to promote your exclusive deals designed for the festivals. All these preparations need money. To help you get the influx of cash to prepare for the holiday seasons, short term financing is the best solution.

To know more about how to optimize your cash flow in festive seasons, read 5 Ways to Optimize Your Cash Flow for Chinese New Year

6. Taking on More Clients

Getting more clients is always good news but what happens when you don’t have enough capital to serve them? An easy way to squeeze out of such a situation is to take short term financing. You will get the fund to attain more clients. More clients mean more money and a step forward in expanding your business.

7. Planning for Business Expansion

If you are thinking of a business expansion, short term financing can provide you the extra funding that you need to finance temporary expenses to help you grow and expand.

8. Planning to Hire More Staff

When your business starts to grow, you may need to hire more staff to manage it. So, you have to invest in your internal Human Resource (HR) department or hire an external recruitment agency to seek the right candidate for your company. Upon hiring, you have to invest in each staff’s salary, bonus, and monthly performance incentive. You can opt for short term financing to raise the extra fund needed for the initial cost of this hiring process.

9. Need to Build Your Credit History

If you are a small company, you need to have some strong credit history to apply to traditional banks for bigger financing. To get started, initiate with short term financing from alternative lenders and maintain a good track record of payments. It will help you in the future to negotiate better interest and financing terms when you apply for long term financing from banks.

To summarize, use short term financing to serve your temporary capital needs. Always align the duration of capital deficiency with the duration of financing to ensure that your need is only temporary. Short term financing gives you the extra boost you need to enhance and expand your business.