Empowering Your $$$

How to Overcome the rejection of Loan Application???

Here the ways you need to know!!!

Must fulfill 5C which bankers always look for:-

Character

-          Subjective Assessment on Personal

¤ Honest

¤ Integrity

¤ Commitment

¤ Experience and qualification

¤ Track of record

-          Subjective Assessment on company

¤ Senior management quality

¤ Shareholder of the company(e.g. Part of the management, foreign base)

¤ Stability and duration of the company

¤ Reputation and Goodwill

¤ Track of record

Capacity

-          -Ability to pay back

¤ Evaluate company or business income or profit

¤ Net monthly flow

   * Ability to repay credit obligation and other expenses

   * Bankers usually use financial statement, bank statement, cash flows projection, ratio analysis to evaluate

-          -Legal Aspect

* Legal applicant must above 18 years old                   

*100% of foreigner’s company generally hard to get loan

-         - Capacity to pay does not means willing to pay

Condition

-        -  Business able to sustain?

            ¤ Current economy environment or policies issue

            ¤ Is the business is high risk, too competitive, sunset business

            ¤ Nature of business (e.g. restaurant cash business)

            ¤ Products (e.g. Gambling or alcohol)

Capital

-         - Banker will look into Shareholder funds, net assets or liabilities.

*Shareholder funds indicate the commitment of the shareholder to the company

*Government funded requirement

                                i.            Capital must at least RM 100,000

                              ii.            Shareholder fund less that RM 2,000,000

-        -  Liquidity of the company

Collateral

-       -  Assets to be pledge or charge to the Bank for assurance

-        - Collateral can be classified into following:

                                i.            Real estate/ property

                              ii.            Share equity

                            iii.            Insurance policy

                            iv.            Third party guarantee

                              v.            Fix charges and floating charges

                            vi.            Debentures over all the assets

-          Anyhow, Banker is most interest in whether the borrower capable and willing to pay back the loan.

-          A banker would prefer the loan is repaid rather than having to collect through auction of the collateral.