Frequently Asked Question
What are the basics criterias for the entitlement to apply for Banking Loan / Facilities?
- Year of Established – Minimum Company/Business set up more than 3 years
- Turnover/Sales p.a. – Company/Business Turnover more than RM 1 mil.
- Reported profit in your account/ Audited Report
- Depends on what industries/ Nature of business
- Company & Directors conducted satisfactory CCRIS & CTOS records
What types of documents should I prepare for the Banking Loan/Facilities Application?
- IC of company directors
- M & A
- Form 24
- Form 49
- Form 44
- Latest 6 months Bank Statements
- Debtors Aging List
- Creditors Aging List
- Latest 3 years Audited Report
- Existing Bank Letter Offer
Do I need to provide collateral / security to the banks?
Basically, banks will request for Property Charge or Fixed Deposit as collateral / security. Of course, some banks do provides clean loan with small amount.
What are the reasons for a financial institution to reject a loan application?
Common grounds for declining credit applications include:
- Applicant does not have ability to repay the facilities applied for
- Purpose of borrowing not in line with facilities applied for
- Unsatisfactory financial results of the applicant
- Applicant has other substantial borrowings resulting in high gearing (i.e. amount of loan is higher than capital)
- Unsatisfactory conduct of current account by the applicant
- Unsatisfactory repayment records with other lenders
- Applicant has cases which are pending legal action
- High business risk such as over dependence on single buyer or supplier
- Lack of financial commitments from business owners (i.e. not willing to commit additional working capital)
- Weak management of the applicant
- Sole proprietor/partners/directors/shareholders/guarantors etc. facing bankruptcy actions from other parties
