The COVID-19 pandemic has made all business owners in Malaysia really rethink how they operate and spend money. With the economy weakening as a result of restrictions and safety protocols, many businesses are struggling to pay employees and keep the lights on without a steady stream of revenue. Because that reality exists for so many Malaysian businesses, many credible lenders, including banks and the Government, are offering Malaysian business loans to local companies.
Business loans in Malaysia, in today’s economic climate, maybe the exact thing your business needs to survive the waning months of the pandemic and the economic recovery that will surely follow after. A loan today could mean a boom in revenue later, whereas skipping the loan could mean that your business has to close. Business loans in Malaysia are, should they be from a credible lender, are safe, secure, and designed to be in a small business’s favor.
So, if you are a small business owner who is looking for a bit of relief while you navigate these unprecedented times, consider applying for a business loan in Malaysia. Here are just a few strong reasons why you should apply and not miss this opportunity.
Low Interest Rates
The simple mechanics of a business loan in Malaysia are that the lender loans the money to the business and the business pays the lender back over time. To ensure that the lender gets something out of the loan, they add an interest rate to the loan that is applied every payment cycle. For example, some lenders will apply between 2% and 8% on business loans that are to be paid out every year for 10 years. That means that each year, the company will pay back a percentage of the loan with interest.
But for Malaysian business owners struggling during the pandemic, many lenders are offering loans at extremely attractive rates. The purpose of these loans is not to make money; rather, it’s to help heal the Malaysian economy and spur economic growth. The more money businesses get to keep, the more they can pay their employees or invest in something to improve their business.
Another way lenders make money is by attaching a fixed fee to the loan. It sounds counterintuitive to charge the lendee money you are loaning them, but it is a common practice to get the fee paid back by the end of the loan. This is standard practice for loan giving.
But, for these economic stimulus loans, the loan fees are either zero or exceptionally small. Because the idea is to help the businesses get back on their feet or keep doors open, the lenders are not looking to make a big profit on the loan. It is in their interest to buoy these companies now in hopes that a better economy helps the lender’s business in the long run.