It’s hard to imagine, but at some point in the near future, the economy in Malaysia will return to normal and the COVID-19 pandemic will be over. Until we get to that stage of vaccinations and free movement around the world, some small and medium-sized businesses need to find a way to survive the harsh economic environment. Luckily for Malaysian-owned and operated businesses, there is a way that you can keep your business alive in the short term, and that is through an approved SME Bumiputera business loan issued by a credible lender.
An SME Bumiputera business loan may be the perfect thing for your business to apply for to keep your doors open. During this ongoing period of uncertainty and insecurity about the economy, it can be challenging to make the right business decisions to survive. One thing is clear, an SME Bumiputera business loan can make a world of difference in helping your business survive and won’t negatively impact in the long term with unreasonable interest rates and fees.
So, if you are thinking about applying for an SME Bumiputera business loan during the pandemic, but aren’t too sure about what they are or which you can apply for, read ahead and become familiar with what your loan options are.
What is an SME Bumiputera Business Loan?
As the name would suggest, SME Bumiputera business loans are loans designed to help out small to medium-sized, Bumiputera-owned businesses in Malaysia. Because Malaysia has so many international firms that establish manufacturing facilities or regional hubs, the Malaysian government often creates business development schemes to spur growth among local SMEs. They created a special class of business type, the Bumiputera business, which represents businesses that are 60% or more owned by Bumiputera.
The Malaysian government knows that its economy needs to heal on a domestic level separate from its international level. Manufacturing and exporting may still be going on, but local commerce has been stifled by the pandemic. These business loans targeting local SMEs are a way for the government to help local businesses stay alive and be a part of the economic healing process once the pandemic is over.
What Some Examples of Good Loans?
There are many loans that you can apply for that would help give your business much-needed comfort, but because of that fact, you need to be aware of what to look for in a business loan and what to look out for from the lender.
You will want to make sure that the loans being offered to you are from credible institutions that have the capability to fully make the loan. Next, you want to see if the lender truly does have struggling SMEs in mind by checking the interest rates and guarantee fee. If either of those is high, then the lender is not to be trusted. Only lenders who offer favorable rates and fees for SMEs will be the ones you can trust, otherwise, it may be a low-morality company trying to take advantage of the pandemic.