Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsProducts for SMEs offered by Financial Institutions in MalaysiaPurpose Product Usage Features BenefitsFacilitate managementof funds, as repaymentamount ispredetermined.A loan granted for apredetermined lengthof time (tenure), withrepayments byinstalments.To aquire fixed assets(immovable propertiesi.e. land and buildings,as well as commercialvehicles).Term LoanAsset Acquisition /Business Expansion• Facilitatemanagement offunds, as leasinginstalments amountis predetermined:• For an operatinglease, maintenancecost is borne by thelessor (financialinstitution).• Instalments paid forleasing are eligiblefor full tax relief.• A facility which allowsSMEs to leaseequipment fromfinancial institutionswithout having topurchase theequipment.To acquire capitalassets such asequipmentand machineries.LeasingYour business requiresassets in order tooperate. These assetscould be immovableproperties such asfactories, shop housesand buildings, or otherassets such asvehicles, equipment,fixtures andmachineries.Financial Guide for SMEs• There are 2 typesof leasing facilitiesavailable:i. Operating LeaseOwnership is heldby the financialinstitutions.ii. Financial LeaseOwnership is heldby the financialinstitutions.However, thelessee has theoption to purchase9595chapter 7-13 p79-181 Eng.indd 958/15/11 5:02:56 PM