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  List of banking institutions in Malaysia
  List of development financial institutions
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Besides asset financing, your business needs working capital for day-to-day running of your business. There are various products offered by financial institutions for this purpose to help you run your business and these include:
 
 
 
  Overdraft (OD) Revolving Credit Factoring
Usage
To meet working capital needs such as payment of salaries, purchases, utilities etc.
Short-term in nature to meet short-term working capital requirements
To obtain short term financing of trade debts (sale of goods to customers on credit terms)
Features
Made available via
current account
A form of loan granted for a fixed period
Financial institution purchases client’s trade invoices at a discount from the face value of the invoices and provides cash advances for business purposes
 
Interest is calculated on a
daily basis on outstanding balance at the end of each business day
Convenient for companies with good financial standing
 
 
A commitment fee of 1% is charged on the un-utilised portion of the facility
Drawdowns by means of letter from the SME to the financial institution stating the period of the loan required
 
Benefits
Flexibility in funds
management provided the facilities are properly
conducted and the business continues to operate satisfactorily
Lower financing costs
Quick and easy cash advances
   
Continuous availability of
funds
No collateral required
     
Able to sell on more competitive terms to credit customers
 
 
  Download
here
For more information on working capital or other financing products such as asset acquisition, trade financing and trade services , please download our booklet on SME- Financing Products For Your Business.