What is Funding Societies SME Micro Financing/-i?
It is a business micro financing that can help you boost capital and improve the cash flow of your SME business. Depending on the nature of your business and needs, Funding Societies offer both Islamic and Conventional Micro Financing options.
If you have yet to know about Funding Societies, they are one of the SME digital financing platform pioneers in Southeast Asia with over 200,000 registered investors whose funds are managed by Malaysian Trustees Berhad.
Funding Societies is registered with Securities Commission Malaysia, so if you are looking for reliable business financing from a non-bank option, this SME Micro Financing/-i can help you grow your business further.
What can I get from Funding Societies SME Micro Financing/-i?
Both Micro Financing-i and Conventional Micro Financing offer financing amounts as low as RM3,000 up to RM200,000 maximum over periods of 6, 9, 12 or 18 months.
The interest rates (for Conventional) and profit rates (for Islamic), would be in a range between 0.8% per month (per annum is 9.6%) to 1.5% per month (18% per annum), depending on your credit profile and documentation.
What are the fees and charges?
The fees and charges for the Micro Financing-i include:
- Processing fee/drawdown fee: 5% of the approved financing amount and will be deducted upon financing disbursement.
- Guarantee fee: 5% of the approved financing amount and will be deducted upon financing disbursement. This fee is applicable in order to secure your financing from the investor.
If you wish to opt for Conventional Micro Financing, below are the fees and charges that will be applicable.
- Processing fee/utilisation fee: 5% of the approved financing amount and will be deducted upon financing disbursement.
Guarantee fee: 5% of the approved financing amount and will be deducted upon financing disbursement.
Is there any fee if I want to terminate my Funding Societies SME Micro Financing/-i early?
For the Micro Financing-i option, you won’t be charged a fee to terminate/settle your financing early.
However, for Conventional Micro Financing, an early termination/settlement fee of 2% will be applicable to your remaining principal amount. This is to partially compensate the investors for the loss of their residual interest.
Will I be charged a fee for late repayments?
Yes. Therefore, late repayments are strictly not encouraged.
For the Micro Financing-i, you will be charged a late penalty fee consisting of Compensation (Ta’widh) and Penalty (Gharamah) based on the following criteria:
- For default payment before the maturity date: Compensation (Ta’widh) of 1% p.a. on the overdue amount (will not be compounded).
- For default payment after the maturity date: Compensation (Ta’widh) of 1% p.a. on the overdue amount (overdue principal and accrued profit). You may also be charged with both Ta’widh and Gharamah as late payment charges at the maximum rate of 10% p.a. subject to the discretion of Funding Societies.
For Conventional Micro Financing, you will be charged with:
- Late penalty fee: RM200 per repayment cycle
Late interest fee: 0.1% per day on the outstanding balance/amount in arrears (non-compounded)
What are the eligibility criteria to apply for this SME Micro Financing/-i?
To apply for Funding Societies SME Micro Financing/-i, your business must have the following eligibility criteria.
- Sole proprietorship, partnership, or private limited companies registered with SSM
- Minimum 30% local shareholding by Malaysians
- Minimum RM60,000 revenue per annum (or RM5,000 per month)
- Minimum 6 months in operations
What documents should I prepare?
Please prepare the required documents below to apply for Micro Financing-i or Conventional Micro Financing from Funding Societies.
- Your IC (front and back)
- 6 months company bank statement
- IC (front and back) of additional directors (if you are a sole proprietor, you don’t need to provide this)