Why Business Financing Is Worth Considering For Your Business Now
Starting a new business in Malaysia comes with its fair share of challenges. From registering your business to getting funds to kick-start your venture, it takes a lot of gumption to make it work.
For those looking to get their retail business funded, inventory financing can be an option. It is a short-term loan or line of credit used by businesses to purchase inventories. Inventory financing is typically secured by your existing inventory without the need to pledge on any personal collateral.
Inventory financing is commonly used to prepare for busy seasons or to fill large purchase orders. For most small businesses, the best inventory financing option is a business line of credit (similar to how a credit card works).
If you have already attempted to get inventory financing through a traditional bank or from your suppliers and were unsuccessful, you may be wondering what other options are available.
Fortunately, there are many alternative lenders that can provide financing options but with more lenient qualification requirements than traditional lenders in Malaysia.
How Inventory Financing Works
With traditional inventory financing, your lender will lend you funds based on the value of your inventory.
You can use these funds as a source of cash to fund your working capital cycle, which includes buying more inventory, providing payment terms to your customers, and paying for business expenses.
You can get traditional inventory financing from banks, asset-based lenders, and your suppliers.
However, other inventory financing options provide the same benefit. It’s often quicker and easier to get short-term working capital financing from alternative lenders.
Especially, since these loans are either unsecured or based on the value of your inventories, the approval process is much quicker.
Plus, these lenders are often able to approve businesses that might not meet the qualifications of traditional lenders, such as low credit scores or short duration of being in business.
SME Business Financing by Dropee
Loans (also known as debt financing) are very common for traditional SMEs.
However, getting one might not be as easy due to the application process that may be cumbersome, tedious, and usually require physical assets like machines, factory or houses as collateral.
It is fair to say that not all conventional loan products by banks are designed for online businesses. However, we have one solution that is mainly catered for small retail businesses to acquire fund online.
Dropee is introducing the SME Business Financing to our retail customers to help businesses accelerate their business growth especially for improving cash flow, purchasing inventories, and outlet expansion among others.
Dropee is a one-stop business-to-business (B2B) eProcurement marketplace where we connect suppliers with retailers and (SME) business owners to streamline product fulfillment processes and facilitate bulk purchases through a suite of enterprise solutions.
Dropee currently specialises in the Food & Beverage, FMCG, and Retail market segments. We aim to make it easier for businesses both big and small to manage their procurement and supply chain ecosystem with greater convenience.
Why should you be interested?
The pre-qualified offering gives you the following benefits:
1) Fast online approval in 7 working days
2) No collateral required & minimal documentation
3) Easy to apply & no referrals needed
4) Low monthly repayment with repayment duration up to 10 years
What you can do with this business funding?
The SME Business Financing is designed to help you manage your cash flow easier to purchase inventories. This loan product is created especially for businesses with no credit terms with their suppliers, and a solution to seasonal fluctuations in cash flows and can help a business achieve a higher sales volume - for example, with this loan, you can purchase extra inventory to sell during the holiday season.
Other than that, this fund can also help support your business growth in terms of increasing your line of products, purchasing equipment, or even expanding your business by establishing new outlets for instance.
What are you pre-qualified for?
Financing amount up to RM 200,000
Repayment period of within 6 to 12 months
Indicative rate between 0.80% to 1.5% per month