Tell me about this business financing plan.
Managing a business, small or medium enterprises, requires a lot of expenses. This expenses range from operational such as managing overheads and payrolls, to production such as acquisition of new assets, machinery, and premises among other things.
To balance your assets and liabilities, you need the right financing to keep up with the supply and demand. Therefore, Bank Islam Al-Ansar Business Financing-i is designed to meet the needs of small and medium entrepreneurs in managing their daily operations.
What can I get from Al-Ansar Business Financing-i?
Al-Ansar Business Financing-i is a term financing for working capital and capital expenditure requirements. This Islamic term financing is based on the Tawarruq concept, i.e. sales on deferred payment basis, and offers a flat profit rate of 4.5% p.a..
The minimum financing amount you can apply is RM50,000, with the maximum amount capped at RM1,000,000. Plus, you can repay your borrowed amount over flexible tenures up to 5 years.
This term financing offers up to 90% margin for capital expenditure and up to 30% margin for working capital. That's not all, Al-Ansar Business Financing-i can also be used for contract financing, subject to a maximum margin of 80% of contract value.
Are there fees and charges I should know?
Obtaining a loan always come at a cost. Like all loan products in the market, you need to pay a Stamp Duty, which is 0.5% of the total amount borrowed, and 6% GST, where applicable.
In addition to these statutory fees, this term financing charges a Tawarruq Agency Fee of RM50, and legal and disbursement fees.
If you cancel your term financing after signing the Letter of Offer, you are bound to pay the bank all expenses incurred in preparing the facility.
Who can apply for Al-Ansar Business Financing-i?
This business financing is offered to Muslim Bumiputera only, whose business operation has been running for at least 2 years with a minimum 1-year profit.
How to apply for Al-Ansar Business Financing-i?
Generally, there are several stages you need to complete before getting your loan application approved. First of all, you need to prepare a comprehensive business plan so that the bank can decide whether or not to grant you the fund.
When you apply for the financing, you need to submit some supporting documents for verification and evaluation. Note that different banks have their own document checklists so be sure to ask your banker for a copy.
Finally during the assessment stage, the bank will conduct a number of background checks, including your credit history, financial track records and current performance before issuing an offer or rejection letter.