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  • Writer's pictureMaung Marsha

A Fuss-Free Way for SMEs to Scale Up with On-Demand Working Capital

It's easy to have a great business idea. But we all know that starting a business, keeping it going, and making it grow is the most crucial yet hardest part of scaling your business.

Growing a business requires lots of planning, time, strategy, and small business loans to get ahead. You cannot afford to be stagnant either, as expenses typically rise each year and could threaten the existence of your business.

With these in mind, here are the latest tips on accessing SME financing Malaysia, microloans. Small business funding will help you grow your business into a profitable one within a shorter time frame.

Let's get started!

What Is A NEO Bank?

A neo-bank is a type of financial institution that is completely digital. Its small business financial solutions are often only available online or via a mobile app.

The ball started rolling about five years ago when FinTech companies like Monzo and Atom Bank started popping up in the UK.

It is different from traditional banks that have been the go-to for decades. They are often located in swanky offices in skyscrapers while neo-banks are almost completely digital.

We can also say that a neo-bank is an exclusively-digital bank that doesn't have physical branches and, instead, offers financial solutions in more convenient, albeit, less conventional methods.

In Malaysia, for instance, neo-banking platforms like INFT are already entering the market, fully operational. They support small-scale enterprises through personalized services, 24/7 financial system service, convenience, swift account opening process, etc.

As of today, according to Internet World Stats, there is a 53.4% internet penetration rate in Asia, which makes perfect sense.

SMEs to scale up with on-demand working capital
a fuss-free way for SMEs to scale up with on-demand working capital

Why Neobanks are Growing in Popularity and Importance

1 - Flexibility:

Neo-banks tend to reach digitally savvy people who are often young and ambitious. The flexibility it offers saves time and affords people a whole new level of convenient banking. For instance, opening an account can be done online without needing to journey to a physical destination.

2 - Cheaper

Another reason for the increased popularity of neo-banks is that the solutions are comparatively cheaper. Prices are transparent and made easy to understand upfront. There are no surprises.

Traditional banks may have surprise charge fees you may not have noticed before on your bank statement. Their monthly fees could also add up.

3 - Fast and Easy to Access

Customer service at traditional banks is usually more lengthy, loan approvals could take a long time.

For instance, if you want to get a SME financing loan in Malaysia, you may have to meet with someone in-person at your local bank, complete a host of paperwork, present proof and documents, and have your account thoroughly checked through.

Neo-banks get around long and complicated processes by having quick sign-up forms and automated checks of credit history, identification, etc. Although personal attention and customer service is available, they're often far more efficient and less time-consuming.

Having your microlending application approved will only take a fraction of the time.

What is a Business Term Loan?

Although starting, marketing, and scaling a business is not a bed of roses, easy access to small business loans via neo-banks in recent years, especially in the post pandemic era, is a welcomed change.

In Malaysia, SMEs have limited financing options. It's common knowledge that a small business will need a reliable and affordable source of cash with a reasonable repayment scheme in order to ride through the rough waters of seasonal fluctuations. Not many Malaysian small businesses have access to small business loans.

Well, chances are you're looking for the next microloan or business term loan!

But what really is a business term loan?

A business term loan can easily be described as a lump-sum loan that lets you pay for equipment, real estate, payroll, working capital, etc. You can even use it to refinance existing debt at a lower interest rate. You may be required to pay off the loan weekly, bi-weekly, or monthly for up to a 10 year interval (depending on the lending service provider). The terms vary from bank to bank.

Taking a short-term business loan can help your small business achieve its short and long-term goals faster. What's even better is that neo-banks offer you an alternative. Maybe, just maybe, you can reduce your trips to the banks, avoid infamous long queues and piles of paperwork.

Tips on Scaling a Small Business Affordably and Quickly

Ensuring your business goals are met requires a deep analysis of your market needs, the assembly of a reliable team, and also investments. To secure sales requires the building of a reputable brand too. But when you start getting what you worked for, you'll see that it was worth it.

Highlighted below are a few things to think about if you want to scale your business.

Establish an Online Presence

Social media is, without a doubt, a powerful tool. It addresses millions of people at the same time. As a small business owner, your business should start with establishing an online presence on social media and the internet sphere to make sure you're easily discoverable. Of course, a long-term plan would be to optimize your site for search engine visibility.

Approximately 93% of consumers perform online searches on search engines before they commit to a company or purchase consumer goods, be it online or offline. This is true when looking for local businesses online as well.

A part of your Malaysian SME financing should go towards SEO, or search engine optimization. This will help you make your site more search engine friendly.

In addition, listen to your audience and read what they have to say, learn your consumers' behavior, and figure out how to make completing a purchase more seamless for them. If done right, you won't have to spend a lot of money to bring in new customers.

business man looking at laptop celebrating a business win
business man looking at laptop celebrating a business win

Don't Be Afraid to Take Out Loans

If you want to start a business, you need a solid financial standing. The same applies if you have decided to grow your business.

After you've laid out your plans for growth and possible expansion, don't be afraid to get small business loans to take your business to the next level.

Make sure you work with the right banks, firms, and preferably the best microloans Malaysia that can provide you with an affordable and flexible loan with flexible payment terms. Neo-banks are more willing to invest in small businesses based on minimal requirements and no collaterals, so it is definitely worth looking into.

Widen Your Network of Contacts Within the Industry

Attending and hosting professional events is another effective way to help your business achieve steady growth.

Networking events is an effective way to meet new people within and outside of your industry. These industry players have unique ideas and perspectives that will help formulate new plans to grow your business.

Networking events is a sure-fire way for you to make connections, and build lasting business relationships.

Improve Customer Relationship

Even if you have a superior product or service, it will be challenging to grow and stabilize your customer base with sub-par customer service.

How customers see your business can make or break it. With the help of the best micro loan Malaysia, you can focus on ramping up your customer service! And who knows? Happy customers tend to share the experience on social media and their friends. That spells free publicity for you.

Show your customers that they are important to you. Respond to their questions and solve any issues they may be experiencing as soon as possible. You can always turn bad experiences into good ones with on-point customer service; and they often come back as even more loyal customers in the end.

Never Stop Performing Market Research

Do you have a consistent customer base? Are you reaching out to new customers looking for your type of product or service? To find out, you need to always monitor the market and see if there are enough customers to make an expansion worthwhile.

Your website analytics will give you an in-depth look into who your visitors are. Are your orders taking too long to come? What are the pages your website visitors lingering on? Where are the drop-off points? Companies with small budgets can consider microlending to hire digital marketing agencies to put your business under the microscope.

Prudent Cash Flow Equals Healthy Progress

Business expansion can be costly, so ensure you have the buffer to undertake the new development.

Most companies, big or small alike, would procure funds injection from investors or sign on a small business funding from a credible firm.

Review your cash flow at every phase of your business growth to ascertain that your profits are still good. Then you can expand even further as required.

Review your cash flow at every phase to ascertain that it is as projected. A performance review is often carried out regularly, mostly once every fortnight or monthly.

Are you prepared to grow your SME but need to access small business loans without the difficulties associated with a traditional bank?

Well, look no further!

We offer business term loans to Malaysian businesses to help scale your business. You'll also get to enjoy a flexible and unbeatable repayment plan that supports your business projected trajectory.

Give us a call right away to get started! Reach out to us at or +6018-7928328 to get started.


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