The Financial Product for Start-Ups
Starting up a business is challenging. It is not enough to have a good business idea and the will to make it happen. Neither is it enough to just be able to produce or manufacture the product or service idea. Once products or services are produced, is there a market for your product or service and how big is that market? Is it good enough to compete with existing market players? And can your product or service competitiveness be sustained as investments are being made in its early production or creation? These are questions which many start-ups and new entrepreneurs have to consider at early business growth phase
The SME Start-Up is unique in that it offers financing and/or business development support when you are ready to commercialise your product or service. This means that when you have a prototype and you require financing and/or business development support to move into production and/or marketing, we might be able to help you even if you do not have sufficient collateral or the mandatory track record. To support greater entrepreneurship in Malaysia, the SME Start-Up has been designed for all new businesses across SME classifications and industries including ICT and agro-based activities and is specially targeted towards businesses with market-viable products or services ready for domestic and/or international commercialisation.
| SME Classification | Micro | Small | Medium |
| SME Profile |  | Start-ups and new businesses in Manufacturing and Manufacturing-Related Services and priority growth sectors / industries as outlined in the Ninth Malaysia Plan. | |
| Eligibility | | Credentialed and experienced entrepreneur and service provider. | | Viable product, service or solution prototype ready for domestic market distribution. | | | Credentialed and experienced entrepreneur and service provider. | | Viable business idea or product already distributed locally but with new opportunities for market expansion and growth, e.g. franchise option. | | | Credentialed and experienced entrepreneur and service provider. | | Viable products / services with new opportunities in local and international markets. | |
Special Funds
In addition, we may also be able to match your start-up development requirements with the appropriate dedicated funds or programmes which are being channeled through the SME Bank. The main criteria is the viability of the business idea and how that idea can effectively be translated into a business plan to produce, commercialise and market to identified local or international markets.
Depending on your business scope, you may also be eligible for all other SME Bank products and services. For example, you may be eligible for the SME Global product even as a start-up if you have a ready market overseas or you have a patent pending or patented product for global distribution. Our officers will be able to direct you to our other products on application.
| SME Classification | Micro | Small | Medium |
| | Conventional and Islamic | | | Conventional and Islamic | | | Conventional and Islamic | |
| Facilities | | Term Loan | | Revolving Loan | | IHP / Leasing | | BG / Letter of Credit | | | Term Loan | | Revolving Loan | | IHP / Leasing | | BG / Letter of Credit | | Loan Stock | | | Term Loan | | Revolving Loan | | IHP / Leasing | | BG / Letter of Credit | | Loan Stock | |
| Limit of Financing | | Up to RM500,000
(for Special Programmes only) | | | Up to RM5 million | | | Up to RM10 million | |
| Interest Rates | | Competitive rates subject to terms of funds and risk ratings where applicable | |
| Tenure | | Up to a maximum of 15 years subject to assets financed | | Working capital up to 5 years, subject to annual review | | Up to a maximum of 3 years grace period | |
| Method of Repayment | | Monthly, Quarterly, Fixed or Contract Terms | |
| Processing Fee | | Nil | | | 0.25% of approved loan | | | 0.25% of approved loan | |
The Support Services
Chances are, you may have a marketable idea for a product, service or solution - but you do not have a sound business plan. To ensure that the business growth path which you take is viable, the SME Bank will route you to the appropriate expert or service provider – should you require any knowledge or advisory assistance at point of application. As a financial services institution, the delivery of integrated SME services requires the participation and commitment of a large network of national partners and service providers. We are therefore sourcing advisory services and facilities through our client and partner support infrastructure to help you move rapidly from idea generation to market reality.
We hope that through the availability of these integrated financial and business development services, the SME Bank and its services network will collectively be able to enhance entrepreneurship across the five product groups by offering the right evaluation expertise and resources to all Malaysian SMEs. To ensure that your business planning and the growth path which you take is viable, the SME Bank will route the start-up or new business applicant to the appropriate expert or service provider in financial services or business development support - should you require the knowledge or advisory assistance at point of application.
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