Business Guide: How to Be Recognised by the Bank As a Small Business in Malaysia

In the ever-evolving landscape of small businesses in Malaysia, being recognised by financial institutions can make a world of difference. When you establish a good relationship with a bank, it can help you access important resources and support to grow. 

In this comprehensive guide, we will delve into the essential steps to gain recognition from the bank for your small business. Additionally, we will go through how platforms like Digital Niaga can become instrumental for your business’s growth and innovation. 

1. Register Your Business Properly

Ensure your company is properly registered because this will impact how banks perceive your business. This includes obtaining the necessary licenses, permits, and adhering to local regulations. Also, whether your business structure is a private limited company (Sdn Bhd), public limited company (Bhd), unlimited company (Sdn), or corporation, ensure all your legal documents are in order.

2. Open a Business Bank Account

Separating your personal finances from your business finances is key. Open a dedicated business bank account to manage your company’s income and expenses.  As a result, this will not only make accounting and tax filing easier but also shows the bank that you are serious about your business.

3. Build a Strong Credit Profile

Just like individuals, businesses also have credit profiles. A positive credit profile is crucial for gaining the trust of banks because it demonstrates financial responsibility and reliability. So pay your bills on time, manage your debt responsibly and monitor your CTOS for your credit score.

4. Maintain Accurate Financial Records

Banks will review your financial records when considering your business for loans or other financial services. Keep thorough and accurate records of your income, expenses, and financial statements because it will instill confidence in banks regarding your financial stability.

5. Develop a Solid Business Plan

A well-thought-out business plan not only serves as a roadmap for your company but it shows banks that you have a clear direction. Include details about your business’s mission, goals, financial projections, and market analysis. Tools like Digital Niaga can be a valuable tool for market research and insights to strengthen your business plan.

6. Consider Digital Niaga for Financial Solution 

Digital Niaga is powered by Borong, in partnership with BSN, a financial programme which provides solutions to local MSMEs who seek bank-supported loans. As such, Digital Niaga allows businesses to use Borong to streamline their operations, monitor inventory, and improve sales while receiving funds from banks.

Final Thoughts

Small businesses play a significant role in boosting Malaysia’s economy as they form approximately 97% of the businesses operating in Malaysia. Thus, you will see more initiatives like Digital Niaga to encourage MSME growth and innovation.

If you’re ready to kickstart your business growth with financial and advanced tech, schedule a free demo with Digital Niaga here.