Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsApplying For a LoanThe key to a successful loan application lies in the provision of all the requiredinformation. By providing the relevant information in your application, you canensure that the lender will have something tangible to review and pass on to thecredit manager and other key decision makers. In most cases, the loan offi cerprocesses the application and makes recommendations to the credit manageror loan committee.Preparing for a Loan ApplicationThe most important thing that you have to consider when preparing for a loanapplication is the requirements of the lender. Some lenders would require thatyou submit your loan application by completing a loan application form togetherwith the supporting documents, while some may require that you prepare adetailed proposal to demonstrate your thoughts and ideas in writing and latersupport them with the necessary fi nancial information. This Chapter will discussin detail the two loan application methods, followed by some tips on presentationof the loan application.Loan Application FormMost of the commercial banks already have their own application form whichcan be obtained from their branches or downloaded from their web-sites. Inan effort to enhance banking effi ciency and customer services for SMEs, theAssociation of Banks in Malaysia (ABM) in collaboration with its members,launched the PARTNER initiative in November 2010.The PARTNER initiative is implemented in phases. Phase 1 of PARTNERfocuses on streamlining and simplifying processes and procedures ofapplications for an SME loan. For this purpose, PARTNER has designed asimple loan application form that can be used in the event the bank that youwish to approach does not have its own. The form is designed to enable thebank to get to know you and is divided into seven main sections as follows:121chapter 7-13 p79-181 Eng.indd 1218/15/11 5:03:01 PM