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SME BANK: HOW WE CAN HELP IN YOUR ENTREPRENEURSHIP

JOURNEY

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>> Type of Financing.

• Bai’ Bithaman Ajil - (Deferrred Installment

sale) • Bai’ Istisna’ - ( Construction) • Ijarah - ( Leasing) • Ijarah Thummal Bai’ - ( Leasing Followed by

Sale)

• Land • Building • Land & building • Machine/Equipment • Motor vehicle

FIXED ASSET

• Fixed W/cap • Revolving W/cap

• Bai’ Murabahah - ( Cost-Plus) • Bai’ Dayn - ( Sale by Debt) • Bai’ Inah - ( Sale & Buy Back) • Kafalah - (Guarantee)

WORKING CAPITAL

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Eligibility Criteria

Status Entity defined as Small Medium Enterprise (SME)

Business activity Activities related to manufacturing, services and construction that not in contrary to Shariah principles

Ownership Malaysian owned entity ( >51% Malaysian equity)

Financial standing Financially solvent

General terms & conditions

Financing size RM20,000.00 to RM50,000,000.00

Tenure Up to 30 years depending on items financed by the Bank (grace period is allowed, where applicable)

Profit rate From 4% p.a based on terms & condition of the funds/program

Repayment mode Monthly, quarterly, half yearly depending on cash cycle

Collateral Depending on ‘assigned risk rating’ or nature of financing e.g. contract financing

Equity structure Depending on types of funds

>> General Features of Financing Offered.

SME Bank Financing Packages

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Small Business Financing [SBF]

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>> Small Business Financing Purpose & Margin of Financing Purchase of Assets (Machinery/Equipment/Loose Tools) - Up to 90% new items and up to 70% for used Working Capital - Up to 100% Profit Rate 7.5% per annum (monthly basis) Financing Limit Minimum Financing : RM100,000 Maximum Financing : RM750,000 Financing Tenure Maximum financing tenure is up to 7 years.

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>> Small Business Financing Eligibilities The business is owner operated. Registered under the Companies Commission of Malaysia Act 2002 or Co-operative Act 1993. The company is in operation at least 2 years and profitable in current year. Minimum turnover of RM250,000.00 (annual sales). Applicant must be a Micro Enterprise Company with minimum of 51% Bumiputera equity ownership

with good credit records. Must not have any adverse track record with any Financial Institutions. Chief Executive Officer / Managing Director must be Bumiputera. Fulfilled criteria set by SME Bank.

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SKIM ANJAKAN USAHAWAN [SAU]

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>> Skim Anjakan Usahawan Skim Anjakan Usahawan is a financing for SMEs to further develop their business and accelerate their growth and innovation. Purpose & Margin of Financing Purchase of Assets (Property/Machinery/Equipment/Vehicle) - Up to 90% new items and up to 70% for used Working Capital for Raw Material only - Up to 100% Financing for Advertisement & Promotions Maximum of RM50,000.00 only. Profit Rate 6.0% per annum on monthly rest Financing Limit Minimum Financing : RM100,000 Maximum Financing : RM1,000,000 Financing Tenure As per Bank’s Credit Operations Guide (COG)

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>> Skim Anjakan Usahawan Eligibilities Registered under the Companies Commission of Malaysia Act 2002 or Co-operative Act 1993. Applicants with minimum of 51% Bumiputera equity ownership. The company is in operation at least 3 years. Satisfactory Credit Check i.e CCRIS/CTOS etc with other Banks or Financial Institutions. Gearing Ratio not exceeding 5:1 Debt Service Ratio (DSR) of >1.25 Has shown positive sales growth for past 2 years.

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TABUNG USAHAWAN BARU [TUB]

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>> Tabung Usahawan Baru Purpose & Margin of Financing Purchase of Assets (Property/Machinery/Equipment/Vehicle) - Up to 90% new items and up to 70% for used/recondition Working Capital - Up to 100% Profit Rate 4.0% - 6.0% per annum on monthly rest Financing Limit Minimum Financing : RM30,000 Maximum Financing : RM5,000,000 @ not more than 85% from project cost Financing Tenure 5 years

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>> TABUNG USAHAWAN BARU Eligibilities The business is registered with SSM/other authorized registering bodies (sole proprietorship or

partnership firm, or a Sdn Bhd company) Company/firm must be Bumiputera equity ownership. Public Listed Companies and GLC’s shares <20% Shareholder equity < RM2.0 million. Track record < 7 years. However for company with > 7 years track record, the average of net

profit margin must be < 5%.

Young Entrepreneur Fund Tabung Usahawan Muda

>> Young Entrepreneur Fund Eligibilities Malaysian youth between 18 to 30 years of age, owned a business The business is registered with Suruhanjaya Syarikat Malaysia (SSM). For Partnership or Sdn Bhd

company, applicant must hold majority shares ≥ 51% AND must be the key decision maker. Minimum possession of entrepreneurship/vocational certificate Those without entrepreneurship/vocational certificate could be considered through the acquisition

of entrepreneurship training from Centre for Entrepreneur Development and Research [CEDAR], SME Bank.

Start-up companies/firms (in operations less than 1 year), will be considered.

Young Entrepreneur Fund (YEF) is a special fund allocated by the Government as part of its continuous strategy of acculturation and creation of new entrepreneurs among Malaysian youth. The purpose of this fund is to provide alternative access to the young entrepreneurs in obtaining financing to start their new business as well as for the needs of their existing business. Purpose & Margin of Financing Purchase of Assets (Machinery/Equipment/Loose Tools) - Up to 95% new items and up to 70% for used/recondition Working Capital - Up to 100% Profit Rate 5% p.a. Financing Limit Minimum Financing : RM20,000 Maximum Financing : RM100,000 Financing Tenure Up to 7 years including 1 year Grace Period

>> Young Entrepreneur Fund

i – Enterprise Premise Financing [i-EPF]

Introduction • i-EPF is a financing package to part finance the purchase or re-finance premises such as factory, shop-office

or shop-lot in commercial complexes whether completed or under construction. The package is bundled together with Working Capital to support business operations and/or additional fund.

Benefits Margin of financing of up to 150%* of Market Value (MV) Longer tenure up to 30 years; with grace period of up to 6 months (for completed property) and 24 to 36

months (for property under construction) Stamp Duty, Legal Fee, Mortgage Reducing Term Takaful (MRTT) and Valuation Cost can be included in the

financing package* Waiver for Fire & All Peril contribution (1st year only), actual cost of searches and actual cost for Discharge

of Charge (if any) No penalty for early settlement* Financing Tenure Company/Individual

⁻ The maximum tenure is subject to 65 years of age or up to 30 years whichever earlier. Working Capital

⁻ Up to 10 years or term financing tenure whichever earlier. Note: Individual (who are in business / having own business).

>> i-Enterprise Premise Financing (i-EPF)

SME-Go

Introduction SME-Go is a financing program that was developed to support Going-Export (Go-Ex) programme under Malaysian External Trade Development Corporation (MATRADE). It is in-line with the Government’s initiatives to guide and enhance the growth of exports for Malaysian SMEs. Objectives Provide customized financing programme to upgrade customer’s local base operations to become

export ready Leverage on MATRADE’s Go-Ex Programme in assisting entrepreneurs to leap into export market Facilities Financing of Fixed Asset (Plant/Machinery/Equipment) Financing of Working Capital (Fixed/Revolving) Bank Guarantee-i/Kafalah

Margin of Financing Up to a maximum 100%* (Minimum financing amount RM250,000)

Financing Tenure Up to 15 years

>> SME-Go

STANDARD DOCUMENTS CHECKLIST

Section I (A) : Registration Documents ( For Company)

Customer (√)

Officer (√)

Form 9 - Certificate of Incorporation (Certified True Copy)

Memorandum of Article of Association (Certified True Copy)

Form 24, From 44, Form 49 (Certified True Copy)

Form 32A (if applicable) (Certified True Copy)

Section I (B) : Registration Documents (For Enterprise & Partnership)

Business Registration (SSM) / Partnership Agreement

Premise Utility Bills for the Latest 3 Months

Section II : Financial & Credit Information

Audited Accounts for the last 3 years (Certified by Company Secretary)

Management Accounts (for period between last audited period up to current month)

Current Debtors & Creditors Aging Report

Bank Statements for the latest 6 months (Certified by Issuing Bank)

Copy of Letter Offer for existing facilities from other financial institutions.

STANDARD DOCUMENTS CHECKLIST....(CONT)

Section III : Company Profile (Following items to be included)

Main Activities ( Products & Services ) Modus Operandi Target Market and Marketing Strategy Organization Chart Profile of Key Management**

List of Top 5 Suppliers & Customers**

List of Top 5 Key Competitors**

List of Completed Projects, On-going Projects, and Future Projects** (Applicable for project-based companies)

Tenancy Agreement or S&P for Premise of Operations

Section IV (A) : Supporting Information for Property Financing

Copy of Title Deed (Land Search)

Copy of Sale and Purchase Agreement (SPA) or Copy of Valuation Report (Previous year SPA & Valuation Report are accepted)

Copy of Certificate of Fitness (CF/CCC)

Section IV (B) : Supporting Information for Equipment/Machinery Financing

Quotation for Equipment/Machinery from Supplier Description of the equipment/machinery to be financed

STANDARD DOCUMENTS CHECKLIST….(CONT) Section IV (C) : Supporting Information for Renovation Financing

Quotation for Renovation

Section IV (D) : Additional Information for Development Financing

Relevant accreditations or certification eg CIDB, PKK, ISO etc (where applicable)

Contract Document with the finalized BQ

Approvals from relevant authorities on building/layout plan, licenses etc (where available)

Section IV (E) : Additional Information for Contract Financing

Contract / Letter Award / Purchase Order / Letter of Intent

Projects / Contract Brief on the Contract to be financed i. highlighting location, key project elements, billing process flow ii. Project layout plan, work program, project BQ, project management

Detailed Project Cash Flow with Assumptions

List of Consultants/ Engineers/ Architects/ Suppliers & Sub-contractors in relation to the project/contract to be financed by the Bank with the respective business registration numbers, addresses and contact person.

Copy of agreements executed in relation to the contract to be financed. (eg Rental, JV, Sub-con, Novation, and S&P Agreements)

Copy of Suppliers/vendor’s quotations, site minutes meeting, etc.

Copy of latest progress report, work program, progress claims, etc.

STANDARD DOCUMENTS CHECKLIST….(CONT)

Section V (A): Supporting Documents for 3rd Party Guarantors (Individuals)

Copy of guarantor’s NRIC

Copy of guarantor’s evidence of income (Form J) for last 2 years

Statement of accounts with other financial institutions for past 6 months

Copy of the monthly salary slips for last 3 months (if applicable)

Section V (B): Supporting Documents for 3rd Party Guarantorss (Corporate)

Company Profile

Audited and/or management accounts for the last 2 years

Form 24, From 44, Form 49, M&A (Certified True Copy)

Profile of Directors & Key Management Personnel

Shareholders’ Resolution for third party corporate guarantors/third party chargers

Contact Us

Kota Kinabalu Enterprise Centre Lot 24 & 25, Block D, Kepayan Perdana, Jalan Lintas 88200 Kota Kinabalu

088-413276 / 088-413277 / 088-413278

1800-88-3131

www.facebook.com/smebank

SME Bank Official Apps >>

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