Among the most encouraging countries when it comes to SMEs is Malaysia. Understanding how these small and medium-sized enterprises work wonders for the economy, the Malaysian government has enacted countless policies and bills that make it much easier for start-up companies to find their place in the Malaysian market. Of course, while starting off with a small or medium-sized business might seem easy and profitable at the start, business owners often hunger for growth once they reach their maximum potential as a small enterprise. While dreaming up potential expansion and growth can be easy, finding the funding to do so isn’t quite as simple. Discover how you can finance your business expansion by checking out these smart methods that will guarantee success.
- Crowdfunding – If the public likes your idea, they might just decide to pitch in to help make it a reality. That’s the basic principle that fuels crowdfunding. There are multiple platforms that allow this kind of business financing, and all business owners need to do is put up their project details and set a funding goal. Those who read about the project have the option to donate whatever amount they want to in order to help the enterprise to its objective. If the budget is met, the fund goes to the business owner. If not, then the platform absorbs the accumulated fund.
- Loans – The most common business expansion funding option that enterprise owners use is the humble loan. Because lenders know how successful SMEs can be in the Malaysian market, they’re often very willing to put out hefty loan amounts to help out business owners. Be sure to take your loan from a reputable lender and shorten the term to a few years, as you can afford to cut back on interest rates.
- Credit Cards – If the expansion you’re hoping to achieve isn’t too grand, your credit card might be more than enough to help you get the extra funds you need. Very few people know about bank overdraft in Malaysia, but it can be a very smart method to get extra financing whenever you need it. An overdraft is basically the process of taking out more cash than your limit allows, to be paid off at a later date set at the discretion of the bank. The overdraft needs to be paid in full, but often allows a reasonable lead time to allow you to earn it back before it’s time to pay up.
- Pledge – If you feel like your business is really going to take off after expansion and you’re willing to take a gamble, you can look for online platforms that will allow you to pledge some of your future earnings to lenders who volunteer to give you funding today. Some business owners pledge up to 6% of their entire future earnings in exchange for hundreds of thousands in upfront cash. Although this can seem like a smart way to play your cards, it’s important to make sure you do the math before you lay down your offer.
- Ask – For business owners who don’t need too much to get their expansion started, it might be well enough to just ask friends and family if they’re willing to help chip in for your cause. Sure, not a lot of people would want to go down that road, but it’s always easier to pay off people you know, because they won’t hound you the same way an official lender would. Ask around before you try any other method, and see if you can get a friendly loan at no interest.
It’s never been easy to find the funds for business expansions, but that doesn’t mean it’s impossible. Try these 5 financing methods and expand your business so it can grow in size and revenue. Of course, don’t forget to pour in hard work and determination.