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What to Know About Collateral Loan Vs Pawn Malaysia

• Crowdfunding

Just like its name, this scheme involves several parties to fund your business. The three most common types are donation-based, reward-based, and equity crowdfunding. Reward and donation-based don’t require any paperwork or even business operational history. They can be achieved in a simpler process, but the result can be fluctuated and unpredictable. Meanwhile, equity crowdfunding requires more paperwork and ownership share/profit. Yet they guarantee the exact money for the funding. Examples of equity crowdfunding in Malaysia are Leet Capital, pitchIN, and Crowdo.

• Business incubators and accelerators

Not only providing funds but incubators and accelerators also help and support start-ups and companies to start their ideas and to run their business. They could take a percentage of profit or set a fixed interest rate to be paid. Examples include LaunchPad, Alphacap, Berhad, the Selangor Accelerator Programme, and many others.

• Angel investor

Referring to wealthy individuals, they offer funds and sometimes with supporting programs to business owners or start-ups that are not eligible for a bank loan. It may seem like a charity, but of course, there will be some percentage to be paid. The terms of the exchange are not fixed and differ for each angel investor. The famous angel investors in Malaysia are NEXEA, MBAN, Biz Angel, and others. For famous individual angel investors, they include Mohd Ridzwan Nordin, Henry Loke, Alan Lim, Kai Kux, Asim Qureshi, and others.

• Business loan
The most common funding for a business is a business loan. in Malaysia specifically, you have to have a business operational history for several years to be eligible for a certain amount of funding. The funds also are restricted to some transactions. Most banks offer loans with interest rates ranging from 5-7% p.a. The amount of the loan is ranging from RM10,000 to millions.

• Personal loan

With less amount, the personal loan usually ranges from RM50,000-RM200,000. Compared to the business loan, the interest rates can also be higher as the maximum rate is 18% p.a. To be qualified for it, a person needs to have a stable income history and a good credit score. This loan is suitable for businesses with less capital like a homemade food restaurant.

Tips on getting business funding in Malaysia
After knowing several types of business funding in Malaysia, answer these questions first before applying to one.
• What is your goal?
• How much money do you need?
• What is your background?
• Do you have any business history or profit?
Each question will help you to find the most suitable funding scheme for you. Check the requirements for each scheme and program as some programs are offered to a certain ethnicity or business fields. The point of getting the scheme is to match your background and need to the available funding. Be confident! As long as they find hope and their mission in your business, they have no reason to not give the funding. Good luck!

Car Refinance Compare with House Refinance in Malaysia

06
Mar

By: editor2 Articles No Comments

Things to Consider for Organizing Malaysia’s Financial Forecast 2023

Things to Consider for Organizing Malaysia's Financial Forecast 2023

In a fast-changing world, we need to realize the development of financial conditions specifically in Malaysia. The higher Malaysian economic growth increased in the second Quarter 2022 and reportedly would continue to be supported by strong domestic demand.

Hence, to strive and survive in the domestic and even global market. The most realistic thing we can do is to organize the financial forecasting. So, what is the financial forecast? Is it different with budget or plan? Let’s take a deep look at how financial forecasts can stand for confronting the unpredictable economic conditions.

Financial Forecast vs Budget vs Plan

Financial forecasts are well-known in business planning and refer to the prediction of the company’s finances by using past or current performance data such as sales, revenue, expenses, etc as to what will happen in the future.

The financial forecast can help an organization or company to adapt to an uncertain demand in the market. Moreover, it also involves the supposition and assumption as well as the unpredictable factors that imply the performance of business. So, is the forecast the same as the budget or plan? Actually, those terms are used in different ways, so here are the differences to get into the same line.

The forecast is a more complex package rather than a plan or budget. Talking about the budget, it will refer to a plan of the amount of specific money that you will spend while a plan concern on the annual forecast that prepared to face the forthcoming fiscal year.
Furthermore, the complex forecast must include cash flow, assets, revenue, sales and liabilities that adjust your plan to depict real performance. For some strategic financial teams or planners, the key performance indicators (KPIs) will be put into the forecast.

Moreover, if you execute financial forecasting well, it will help a company or organization to withstand economic problems and adapt to income and outcome fluctuations. Meanwhile, if your forecasting is not running well or, let’s say, bad forecasting, it will even destroy your business performance.

Before organizing a financial forecast, you may need to know the things to manage the financial forecast to help your business planning. Here we go!

What to Know About Collateral Loan Vs Pawn Malaysia

1. Define what you expect from the financial forecast
Before organizing a financial forecast, you must define the purpose first. What do you expect or hope from financial forecasts like how the budget will be shaped by a company’s finances in the future or the estimated services or products will be sold in the future? Defining your purpose will help you to consider the factors or metrics that influence your financial forecast.

2. Build your accurate revenue model
For organizing a good financial forecast, it will be better if you build a comprehensive revenue model. This model will be flexible to run various scenarios if you end up with several questions, such as “What will you do if there is no significant revenue?” or “Which program will be eliminated to maintain the company’s profit?”.

Every kind of business certainly has its own variables based on the industry. For instance, if you are running a law firm, you probably need to put billing rates, client list, legal fee, etc as variables in your revenue model. Meanwhile, it will be different for manufacturers and will take variables like utilization, capacity, the amount of products, etc. No matter what kind of business, the revenue model will help you to organize financial forecasts by building your accurate revenue model.

3. Build your accurate expenses model
In addition to the revenue, you also need the expenses for organizing the financial forecast. There are several things to consider when building your expenses, such as personnel expenses (employee salaries as large expenses), operational cost, fixed and variable expenses, COGS (cost of goods sold), and allocation costs. Build the accurate expenses as well as the revenue model.

4. Collect all relevant past performance data
Financial forecasts need a lot of information related to historical performance data. Hence, make sure you collect all your past financial performance data such as the liabilities, assets, revenue, expenses (losses), cash flow, etc. Those data are one of the components of the forecast.

5. Determine the time frame of financial forecast you need
Generally, financial forecasts are designed to adjust the flexibility of the time frame. You can organize your financial forecast to deliver insight into your business in the future by determining how long the future looks. You can design forecasts for several weeks, months or even years. However, the financial forecasts will be more accurate in the short term, because they will change depending on the market trends. Hence, most financial forecasts are used only for one budgetary year.

6. Determine a method of financial forecast
After determining the time frame, you can determine what kind of method you will use to organize forecasts. There are two methods you can choose, quantitative or qualitative forecasting. Quantitative used past performance data to predict the trends, while qualitative referred to opinions from experts related to the company and the market.

7. Monitor and analyze your financial forecast
You need to monitor your financial forecast to ensure whether it is accurate or not. Moreover, monitoring financial forecasts will help you to update the forecast that depict the current development. After that, make sure to regularly analyze to prepare the next forecast with better organization and management for your company’s financial performance.

8. Apply the previous time frame
After knowing the best forecast for your company, you can try to apply the same time frame to the financial forecast that will fit your next prediction. On the other hand, you can adjust to the current economic conditions. These forecasts are flexible to design and depend on the company’s needs.

Organizing financial forecasts will help a company or organization to survive in uncertain market and economic conditions, especially in Malaysia. Moreover, financial forecasts will assist companies to adjust to domestic demand in Malaysia changing over time. Hence, the financial forecast will guide you to predict what will happen in the future with the best preparation.

Car Refinance Compare with House Refinance in Malaysia

27
Feb

By: editor2 Articles No Comments

The Guide To Refinance Private Car In Malaysia 2023

After you take out a loan to buy a car, you might want to consider refinancing it to help you pay up the debt. Most car owners take the refinance path in order to decrease the monthly payments that they are obliged to pay. Before we dive into this further, it is better for you to know what car loan refinancing really is.

When you refinance a loan, your old debt obligation will get replaced with the new one that has easier terms. By refinancing your car loan your old loan agreements are replaced with the new updated agreement. This will let you to redo your loan in order to get monthly payment that is much lower than before. You can also get better interest rate as well as more suitable payment structure that could help you to save money for other necessities.

Can You Refinance Your Car Loan?

Yes, it is possible to refinance your car loan if interest levels have dropped since you bought the car or when you have a good standing credit score. By refinancing your car loan, you will not only pay a lower amounts of car payment monthly, but you can also decrease the loan interest.

What Happens When You Refinance Your Car?

By refinancing your car loan, you will get a new loan but with different terms that will replace the old loan terms. Then you will pay monthly payments according to the new loan terms.

You can refinance your car with existing lender or you can also pick a new lender to compare rates, fees and special offers.

The lender will asses your vehicle, check your credit score and verify your income as well as request car insurance proof. You may need to give additional documents to assure the lender that you are capable of making the monthly payments.

What Do You Need To Consider Before Refinancing Your Car In Malaysia?

The first and the crucial thing you need to consider is your credit score ranges. You can review your credit standings by requesting a copy of your CTOS and CCRIS reports. However, the bank will check your credit score before deciding to reject or approve your loan. The credit system in Malaysia is a little bit different than in the USA. Malaysia’s credit system appraise your score according to how well you can pay off your loans.

Can I Pay My Car By Cash?

Yes, you can purchase a car by cash, but a lot of people would not do this because it can make you have to deal with Income Tax department. in spite of what preceded, if you are okay with that, then buying the car by cash would be fine.

What are Malaysia’s Interest Rates?

The interest rates in Malaysia are pretty definitive if you intend to deal with hire purchase loans. At the time of this article is written, the rate is 4 to 5 percent and it depends on the bank. This is also contrasting with property loan. Property loans use BLR system (Base Lending Rate) and other rate that are specified by the bank. Bank of Malaysia or Bank Negara Malaysia is the one who decide BLR and it changes in a regular periodic manner. If you take hire purchase loans, you will pay standard rate for the loan’s whole duration.

What to Know About Collateral Loan Vs Pawn Malaysia

Tips When Taking Hire Purchase Loans

It is very common to take hire purchase loans in Malaysia. Even if you already have the money to buy the car right away, you might not want to do that since it might attract undesired attention from the Income Tax department. Here are the tips you can do:
• Try to pay more down payment and use 40:60 ratio. This will make your loan become 60%.
• Then opt for interest rates that are much lower for the shortest time available.
• Most banks in Malaysia will give you at least five years of loan for hire purchase.
• Then negotiate it for three years.
• By doing these methods, you will save your interest rate and you can own the car as soon as possible.

Get A Guarantor For Your Loans

Not many banks need guarantors particularly when you want to buy a car. The reason is because the car will have lesser in value by default. But if you are just borrowing for the first time or if you don’t have a good borrowing credit score, you can get help from a guarantor in order to secure your loan. You also have a possibility of receiving much more better rates if the guarantor has outstanding credit history.

Utilize A Loan Calculator

By using a loan calculator, you will be able to easily check how long it will take for you to settle your car loan. In Malaysia the rule stated that you have a year up to 9 years maximum to pay up your loan. Moreover, it is important to understand that banks in Malaysia apply the rule of 78 for car loans. The rule of 78 means that you might end up paying more money than you expect to refinance the car loan. This means that you need to pay the maximum interest at the beginning of the car loan. You need to use loan calculator so you will be able to make the right decision. There are online car loan calculator you can search and use free of charge.

Will A Lender Refinance My Car Loan?

There are some cases when a lender will not refinance your car loan such as:
• The car‘s condition. If you have older cars with a lot of mileage, it may not be considered eligible for refinancing. In addition, the mileage and age assessment may be different depending on your car’s model and brand.
• The car’s value. If the value of your car is lower than the cost of the new loan, you are unlikely to get refinancing chance.
• The time left on the old loan. The closer you are to settling off your old loan, the less likely you will get refinance from your lender.

Car Refinance Compare with House Refinance in Malaysia

20
Feb

By: editor2 Articles No Comments

Refinance Your Car in Malaysia is a Smart Way to Save Money in 2023

Missing payments or finance deferments are issues many people face in terms of credit obligations every month worldwide. The problem is not always about financial constraints, but also interest rates, bad credit services, and other circumstances. If you experience one of those things, a refinance could be the solution to the problem.

If you happen to be in Malaysia, and having a problem in paying your car loan payments? Or, maybe your car installments are draining your monthly cash flow? You might be able to overcome the difficulties through the refinancing process, such as at Carsome, Ringgit Plus, Pajak Kereta, and many more.

Therefore, when to refinance and how to refinance your car in Malaysia?

When to Refinance Your Car

If you are paying for a new or used car, you will hear the term “refinance”. To put it simply, when paying for a car, you can apply for refinancing with a guarantee, such as a certificate of ownership. In general, a car refinance is intended to reduce existing financial burden and utilize lower interest rate deals than the previous loans. This is done, especially if your financial flows are disrupted due to current economic situations, mainly pay cuts, loss of income, and so on.

In addition, a car refinance is a renewal of a car loan application from the bank or a financial institution to settle the existing car loan balance. A car refinance is aimed at reducing the amount of monthly installment payments, thus leading to saving expenses and improving current cash flow. For this reason, refinancing usually offers lower interest rates with longer payment periods.

Therefore, when’s the best time to refinance your car in Malaysia? Here are some conditions that can be taken into consideration:

● Refinancing can usually be done at the beginning of your car installments. If it’s not offered, you can ask for one.

● If your installments at this point is a shortfall and it’s difficult for you to apply for another credit, then, when your credit score is good, that’s the right time to apply for refinancing. With a good credit history score, the refinance offers can be better.

● When there is an offer with a lower interest rate, you can start the refinance process, assuming all other costs are the same. Obviously, the debt you have to pay is smaller.

● In fact, the longer the car is used, the less valuable it gets. So, you should not delay too long for refinancing. Not to mention, good interest rates usually apply to vehicles that are still okay and new.

Ways to Refinance Your Car

To refinance your car in Malaysia is easier if you are already a customer of a bank. So, the data collection and account verification process in your financial history doesn’t need to be done from scratch again. However, when submitting your refinance request to other financial lending institutions, there are several things that need to be done.

So, here’s an overview of the ways to refinance your car in general:

Total Loan and Interest
Before choosing a refinance institution (Carsome, Pajak Kereta, etc.), make sure they are approved by the financial services authority. Be familiar with the total number of loans you need and how much interest will be given if you pawn your car. Be sure to reduce the amount with the remaining car installments. After that, choose the type of interest you will use (fixed rate or floating rate).

Complete Documents
The documents you are most required to prepare are as follows:

● Applicant’s ID card (Malaysian NRIC)

● Proof of income— salary slips for the last 3 months, savings account, proof of employment, income tax return forms, etc.

● Car registration information— car certificate of ownership, VIN number, car insurance, or car mileage.

● Information on existing loans— monthly installments, interest rate, current balance, and repayment periods.

Credit Simulation
Once you prepare important documents, you will have to apply for a credit simulation. This is done to get a clearer picture and arrange the payment scheme (types of interest, etc.).

Survey
A team of financial institutions will conduct a survey on your car that will be used as collateral. At this point, make sure the car is in a proper condition.

Refinancing Approved
If your car refinance process is approved by the financial institution, they will automatically pay off the remaining funding. Thus, the remaining money will be given to you, or it depends on the policies implemented by the institution.

What to Know About Collateral Loan Vs Pawn Malaysia

Advantages and Disadvantages of Car Refinance

To refinance a car in Malaysia does provide various benefits. Especially, if you can pay it off on time without any obstacles. Here are some of its main advantages:

● Get additional funds— You can receive additional funding as long as you have a good financial history. Thus, it transpires when the installments start from the beginning, adjusting to a fixed or low interest.

● More effective debt payment— You can pay off debt faster in various places with the funds obtained.

● Investment funds— Your approved car refinance allows you to invest in other things, mainly building your own business or investing in other business. Make sure the business is profitable, so you don’t have a pile of debt.

Despite getting extra savings, here are some of refinance disadvantages:

● Increase debts— You need to pay attention to the interest rate that is offered to you. If you arrange the wrong interest rate determination, then the costs you will pay will certainly increase.

● High liability costs— In the long run, you will need to pay additional liability costs for car services, gasoline, and other maintenance problems. Since, the costs to maintain a car— new or old ones, can be costly. Thus, it will affect your savings later on.

In conclusion, car refinancing in Malaysia can be profitable, able to ease your car loan installments, and even help pay it off faster, as long as payments are made on time and avoid mistakes that may be detrimental. No need to worry, with complete information and the right analysis, you can do refinancing to enjoy its benefits.

Car Refinance Compare with House Refinance in Malaysia

13
Feb

By: editor2 Articles No Comments

How To Find the Trusted Vehicle Pawn in Malaysia 2023

How To Find the Trusted Vehicle Pawn in Malaysia

Nowadays there are many schemes to get money instantly. People could sell their belongings, take a loan, or even get a combination: a pawn loan. Pawn brokers or shops in Malaysia accept collateral in several forms like gold, jewellery, securities, and vehicles. If you plan to make your cars or other vehicles your pawn, here are several things that you need to know.

To give you more detailed information about pawning your commercial vehicles, we will tell you about things you can do when pawning your vehicles. You may also want to check “Pajak Kereta” or Refinance car loan service.

Pawn loan law in Malaysia

Pawn loans are commonly found in banks and pawn brokers/shops. Legally, pawning is controlled under the Pawnbrokers Act 1972. Based on the act, a pawn loan refers to a loan in exchange for someone’s valuables in case the person is unable to pay back the loan. Two things can be done by a pawnbroker; they can give collateral-based loans or buy valuable things.

The maximum flat interest by law is 24% per year or 2% per month. Meanwhile, the maximum loan that can be lent by a pawn shop to a client is RM10,000. Pawnbrokers will provide the length of the loan along with the interest which mostly is up to six months. The lender could choose to pay monthly or all at once at the end of the period.

The amount of the loan is usually determined by the value of the collateral. In the case of a vehicle, the type and year affect greatly the loan. Whether the vehicle is fully paid or still has monthly instalment payments could even determine the eligibility of a person to get the loan. As most pawnbrokers only receive fully paid and owned vehicles, vehicles with running instalments are rarely accepted as collateral.

How to get a vehicle pawn in Malaysia

As mentioned before, vehicle pawns are mostly available in corporate institutions like banks or on a smaller scale like pawn shops/brokers. Some large banks offer pawns and loans, but most of them only provide the loan. One of them that offers pawns is Bank Rakyat.

Meanwhile, for the smaller scale, many pawnbrokers or pawnshops can be found online and offline. Yet, choose the trusted one, and tips to find one is provided after this section. Generally, there are several steps in getting a vehicle pawn in Malaysia.

• Find a trusted vehicle pawn lender (it can be a bank or pawnshop).
• Read the terms and conditions of the pawn thoroughly. If you think you are eligible and the institution can be trusted, you can go to the next step.
• Prepare for the requirement such as the vehicle ownership documents, vehicle registration certificate, driving license, and others. You could also prepare the vehicle by fixing some damaged parts to make it look more valuable.
• Fill out the pawn application. Though different pawnshops/banks have different questions in their application, most applications want to know the aim of the loan/pawn and your background, and whether you are considered to be able to pay until finished or not.
• If your application is approved, they will check your vehicle first to give the exact amount of loan that they can lend to you.
• If you agree with the amount of the loan and other terms, you can sign off the loan contract and receive the money.

What to Know About Collateral Loan Vs Pawn Malaysia

Tips to find trusted vehicle pawn lenders in Malaysia

• Large, legal, and corporate institutions like banks are surely safe places to get a loan/pawn. Yet if you are not eligible, you can go to pawnshops. The important thing is to go to the licensed ones. There are several lists of licensed and legal pawnshops on the internet.
• Read thoroughly the details of the pawn including the principles of the lender. For example, if the lender employs the Shariah principle, there will be no interest but there is a safekeeping fee. Then compare to conventional principle and find the one that suits your condition best.
• Check the interest rate. Some law is already regulated this.
• While contacting them, make sure about what they will do to your vehicle. That includes if there is damage to your car once it is returned.
• Find more views whether they are online or from people that you know. Moreover, it will be more beneficial if you can get testimony from someone who is already taking or finishing a pawn loan.

Malaysia vehicle pawn benefits and disadvantages

Benefits:
• The pawn will not affect your credit score. When you cannot pay the loan, they will just sell your vehicle. If the vehicle costs more than RM200, the pawnshop or the bank will conduct an auction to sell your vehicle.
• Usually, you can have alternatives of the monthly payment or bulking payment all at once at the end.
• There will not be growing interest penalties. You may only lose your vehicle as collateral and no further confiscation may happen in the loan scheme.
• fewer documents or paperwork are required. Compared to unsecured loans, a vehicle pawn has a faster process.

Disadvantages:
• Compared to personal loans, the vehicle pawn has a higher interest rate.
• Your vehicle or other valuable things used as collateral will be valued less than its real value. so, it is better for you to finish your loan than lose your vehicle also.

The risks of pawning the vehicle

In several cases, there is something unexpected happens and the vehicle owner must be ready. The first one is vehicle damage. Some pawnbrokers just keep the vehicle while others might use it. Make it clear before you sign off on the contract. Worse than that, some parts of your vehicle might be illegally changed. Though this case is quite rare, it may still happen especially in unlicensed pawnshops/pawnbrokers.

Once you experience the ease of getting a loan from a pawn scheme, there is a potential for you to take other valuable items as a pawn for other loans. Do not get addicted or even use the pawn loan to support your lifestyle. Pawnbrokers always provide you with loans as it will benefit them whether you can repay them or not. Consider other types of loans including credit cards, personal loans, and even selling your valuable things first before jumping into a loan related to pawn vehicle commercial vehicles in Malaysia.

Car Refinance Compare with House Refinance in Malaysia

06
Feb

By: editor2 Articles No Comments

Guides To Pawn Your Commercial Vehicles in Malaysia

Guides To Pawn Your Commercial Vehicles in Malaysia 2023

In layman terms, the meaning of pawnbroker is the lender who lends you money in return for personal property. This is called collateral. The lender can sell the collateral if you fail to repaid your loan by a certain time according to the contract agreement. In Malaysia, people generally recognize the rule of pawn as pawnbroking. This is according to The Pawnbrokers Act dating back in 1972 as the main source that controls pawnbroking system in Malaysia. There are some sources claimed that pawnbroking is an easy way out to lend money without having to undergo credit check. You can pawn your belongings ranging from houses and even commercial vehicles.

With that being said, there are still regulations that govern this system. If you want to pawn your commercial vehicles, there are some rules you need to follow. In addition to that, there are also some things that you need to pay and fulfil prior to pawning your vehicles in a pawn shop.

How Can I Pawn My Commercial Vehicles In Malaysia?

In pawn shops, there are high demand pawn items that you can pawn in order to obtain quick cash such as Jewellery, Electronics, Precious metals, houses and also your vehicles among other things.

As mentioned in the paragraph above, In Malaysia vehicles can be pawned because the regulations acknowledge them as valuable things. in spite of that, you are advised to find financial organizations when you want to pawn your vehicles such as motorcycles or cars due to the fact that the amounts of money you get are not so big compared to other pawn worthy items such as diamonds, golds, or other equivalent jewellery and accessories.

Before you find the pawnbroker, you need to prepare your valid ID and also the item you want to pawn (in this case is your vehicle). Then, the broker will evaluate the items and give you the loan. The assessment will always make the value goes down than the item’s actual value because of the added interest rates.

After the item is accepted and all is done, you will receive a pawn ticket. This is a receipt of item you have pawned. This ticket is important and you should keep it secure as you will need the ticket again after you have paid off the loans and want to get your vehicle back.

What Pawning Policies Should I Know Before Pawning My Vehicles in Malaysia?

The critical points you should understand when you wish to pawn your belongings are the interests rate and also the maximum loans. At the time this article is written, the highest amounts of loans you can receive are 10.000 ringgit. In addition, the interest rate is around 2% each month or 24% annually.

If you are a moslem and looking for pawns that is regulated within sharia rules, unfortunately there are no pawnshops that operate within sharia principles in Malaysia except golds pawn. As a direct consequence, you have to pay your loans with the interest rates when you want to pawn your belongings. Moreover, the vehicles (cars and motorcycles) prices scales are going to be on the lower-average level after we consider the evaluated values and also the highest amounts of loan you will get.

In most cases, the average cost for cars in Malaysia is around RM 40.000 or around 450 ringgit per month for the payment price. On the contrary, the price for motorcycles in average starts from around RM 8.000 to RM 11.000. If you pay per month, it would be around RM 228 to RM 350.

Pawnbrokers in Malaysia normally limit the payment plans for up to six months while both the pawnbrokers and you decide how long grace periods should last. If you fail to pay according to the agreement you will risk losing your pawned items.

What to Know About Collateral Loan Vs Pawn Malaysia

4 Things To Consider Before Pawning Your Commercial Vehicles in Malaysia

We all know that pawning your belonging may seems like an easy way out from financial deficiency and it is! However before you rush over to sign the pawn contract, it is always a wise move to follow these three things before you pawn your vehicles. These four things will help you to check whether you are eligible to obtain loan and prevent delay in getting loans.

Ensure The Vehicle Is Free From Debt

On the assumption that you are free from outstanding car debt and you can prove that you are the legal owner of your car, you can proceed to the pawning contract. You cannot pawn your car prove of ownership (car title) while you keep the car. When you pawn your car, the loan company will take the car from you and move it into secure and protected storage facilities. You can only get your car, your car title and car keys back after you have completely paid off your debt.

Make Sure You Prepare All Documents Requirements

Before going to see the pawnbroker, you need to prepare these documentations:
• Proof that you are 18 years or older by providing Your ID
• Proof of address
• Proof of income
• Valid Driver’s License
• Service Book
• Original Registration Documents
• And Your vehicle Keys

Make Sure You Understand Factors That Affect The Car’s Value

It is important to keep in mind that your car’s value is evaluated and valued based on many factors. When you pawn your car prove of ownership a.k.a car title, the loan company may apply interest to the amount.

And The Last Is Do Ask About How They Store Your Car

After you have found the pawnbroker for your car, you need to figure out how they will store your car while you try to pay them back later. Do they provide indoor storage? The last thing you want is for your car to become worse while they are in charge to keep it. Choose pawnshops that offer safe and secure indoor storage for your peace of mind.

Car Refinance Compare with House Refinance in Malaysia

30
Jan

By: editor2 Articles No Comments

Guides To Get Business Funding In Malaysia 2023

If you want to start a business, it is inevitable that you will spend a lot of money, possibly thousands or millions of ringgit. You will need to fund your business to maintain daily operations. There are many expenses you have to spare such as for equipment, marketing, paying employees and getting your business registered.

On the positive notes, you can obtain money for your business by utilizing these six options explained below. Let’s find out what those are!

1. Taking Personal Loan

When finding a way to finance your business as a business owner, taking loan route might be the last thing you want to do. However, a personal loan can be an ideal choice to take when you need to cash up some ringgit to advance your business. This option is acceptable for microenterprise businesses that don’t require a great deal of capital. For instance: catering business, food truck or a home based bakery.

In order for you to be eligible to get a personal loan, first thing you need to make sure is your credit standing. You also need to prove that you have a stable income. In general, a personal loan is much easier to get than a business loan.

For your information, if you want to take a business loan, you have to prove that your business has been running for few years. Some of these loans provider also give out funds just in one working day. This quick funding will surely be useful when you are really in need of some quick cash for rainy day.

Besides having a positive side, taking a personal loans can also lead to some negative impacts. Personal loans have financing limit that are much lower. It is approximately between 50.000 Ringgit to 200.000 ringgit. The limit may also depends on your earnings. Moreover, typically they also have interest rates that are much higher than the business loans counterpart. On top of that, if you are running a business or if your job is self employer, then it can be a lot harder to be eligible for this personal loan.

2. Business Loan

Now let’s discuss about the business loan. Unlike personal loan, business loans are tougher to obtain than personal loans. Your business may need to run for certain years before you are granted personal loan. If you need high financial funding, you may have to put up collateral. Moreover, once you receive the funds, they may come with restrictions. For instance, you may not capable to use the funds to invest in real estate or to purchase shares.

However, on the bright side, you can really receive a lot of funding, approximately between RM 10.000 to millions ringgit. in spite of what preceded, it also depends on the nature of your business operations and whether you have any collateral you can pledge to. Business loans also charge interest with the range of 5% to 7% p.a. The amount of interest in business loan is much lower than personal loans that can be as great as 18% p.a.

What to Know About Collateral Loan Vs Pawn Malaysia

3. Grant And Schemes

Other option you can try is obtaining grants and schemes. You can get funding by using government or corporate schemes since they provide low-interest or even free of interest for financial aid, grants or mentorship as well as networking opportunities.

But in spite of that, you need to be aware of the requirements, since each financing schemes has a set of rules you can’t afford to ignore. For example, some schemes are only feasible for specific business only (e.g. for people looking to boost their digital capacity) or for certain demographics (e.g. exclusively for female entrepreneur or an applicant of Bumiputera). over and above that, some grants can be quite competitive that it requires a multitude of evaluations before they decide to accept your application.

If you are interested to apply for grant and schemes from government and corporate, visit MDEC, MaGIC and SME Corp Malaysia websites to get more information.

4. Crowdfunding

If grant and schemes from government and corporate are not your thing, you can try crowdfunding. Crowdfunding is raising money by asking many individual investors to chip in in order to earn money. Here are few types of crowdfunding:

Reward Based Crowdfunding.
This type of funding can be found on some international websites like Indiegogo and Kickstarter. On those websites, users give money to individuals or business sectors in return for services or products.

Donation Based Crowdfunding
Websites such as GoFundMe is a type of donation based crowdfunding where users can support individuals, charitable organizations and even business without expecting to get anything to repay the favor.

Equity Crowdfunding
Malaysia has some Equity crowdfunding platforms such as Crowdo, Leet Capital and pitchIN. This type of crowdfunding happens when individuals invest their money to companies as a compensation for share of profit or ownership.

In general, it is a lot easier to get money through crowdfunding than through grants or bank loans. This is because the requirements you need to fulfill in order to be eligible are not as hard as loans or grants. In some cases you don’t even need to prove history of your business operation if you go with donations or rewards based platforms.

in spite of that, it may also have downsides. For instance, some of crowdfunding platforms won’t let you receive money if the target funding is not reached, despite the fact that that you have invested money and time to build the campaign.

5. Peer-to-peer lending

Also known as P2P lending or debt based crowdfunding is a type of lending where you get a huge amount of money as a loan from investors.

This alternative option of financing is good choice you can try if for some reasons you are not eligible to obtain a bank loan. P2P can offer lower operational as well as financial eligibility requirements. Moreover, P2P lending can provide quick cash. Let’s say if you borrow below 100.000 ringgit, it may only take them few days to process your application.

But for all that, you need to be prepared to pay a lot of interests. P2P providers tend to set higher amount of interests (it can goes up to 18% p.a) while banks’ interest are around 5% up to 7% p.a. This is because your investors expect you to give back more money than what they lend you. This might lead to financial risk in the future if you can’t pay back the money. The interests they set are in addition to the charged fees from the P2P providers themselves, which may be your loan’s percentage cut.

Car Refinance Compare with House Refinance in Malaysia

27
Jan

By: editor2 Articles No Comments

Business Cash Flow In Malaysia 2023

Business Cash Flow In Malaysia

What is Business Cash Flow?

In simple terms, Cash flow is the amounts of money or its equivalents that get moved in and out of your business. The money you received is called inflows while the money that get transferred out is called outflows. The business cash flow is typically classified as cash flows coming from business operations, financing as well as investing.

Is It Important To Manage Business Cash Flow?

Cash flow is crucial for your business to stay afloat. The money that your business receive will eventually go to another parts of the system to keep the business going. If you experience insufficient cash flow, you will get financial related problems down the line. Poor cash flow management makes your business unable to provide proper payroll, replace inventory or employ marketing campaign strategies. With that in mind, having smart cash flow management is pivotal for your business’s future. By having a good cash flow management you will be able to make your business to have consistent cash flow that will lead your business to expand.

With that being said, there are so many businesses that can’t survive due to their poor management regarding to cash flow, especially those small business employers. To minimize the risk of bankruptcy there are some tips you can try to manage your business cash flow.

The Cash Flow 101: Learn About The Negative and Positive Cash Flows

Before you begin to manage the cash flow, it is better for you to understand the basic of cash flows. As mentioned on the paragraph above, cash flow is where your money goes in and out when doing business. Typically, a company monitors and logs cash flow in weekly, monthly, sometimes quarterly depending on the business financial situation.

In general, cash flows are categorized into two types:
• Positive Cash Flow: It means that the cash that your business receives is more than the expenses that goes out of your business.
• Negative Cash Flow: refers to the company situation when the business company spends more expenses than what it acquires. It is usual for a company to spend money in order to expand their business, acquire more customers or provide equipment and services. However, when negative cash flow happens often, it can be a sign of poor business plan and lack of cash flow management. With that being said, you need to fix this problem by reducing expenses.

Is Having Positive Cash Flow Equals To Having Successful Business?

You need to be aware of the difference between “cash flow” and “profit and loss statement” since those two are different. If your business has a positive cash flow, it does not automatically translates to having good profitability and vice versa. The cash flow statement is only a report of the state where your money is going after a short period of time. This is not necessarily an indication that your business is doing great.

However, you can tell if your business is profitable or not by looking at the profit and loss statement. A profit and loss statement can give information for the business owner about how the companies are doing financially. The report will give you additional insight about total revenue and expenses as well as other important financial details, so that you can asses your business according to the report.

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Tips To Manage Company’s Cash Flow

Now after you have learned the basic of cash flow, it is time to take the knowledge into action. Here are few tips you can do to manage your business’s cash flow better.

1. Identify Risks On Your Business And Prepare For It Accordingly
Running a business is not all sunshine and rainbows. There are always risks that can befall your business at any time and that is pretty normal in the business world. You can’t expect your company to have smooth sailing for years to come. Sometimes you will face storms and floods and the other time you will reap profits. However, there are some old adage that says, “by failing to prepare, you are preparing to fail”. With that being said, planning is crucial. The most critical steps in cash flow management is to have a good and concrete plan on how you would stay away, mitigate and rectify those risks when they come.

Take Covid 19 pandemic for example. When the pandemic sweeps the world in 2020, all countries were impacted especially the business sectors. When the government applied lockdown, many business were in financial ruin. After the pandemic impact has lessened, the aftermath happened. Many business sectors experienced materials shortage, supply chain problems, food shortages as well as inflation along with others. Businesses that deal with export and import face problems of currency values. Thus, from these problems we can learn that planning in advance is necessary for your business’s future.

2. When It Comes To Business, Always Have A Separate Bank Account
When dealing with money, it is important to have a cash flow management. However, you also need to make the cash flow monitoring easy to conduct. However, many business owners make this mistake. They do not separate their personal and business bank accounts, this will only blur the cash flow reports since it will be difficult to tell which ones are from your personal expenses and which ones are from your business activities. For this reason, having a separate bank account dedicated only for your business is crucial to make cash flow management easier to do.

3. Include Inventory On Your Cash Flow
Inventory is important to include in the cash flow report. Without enough inventory, it will be challenging to fulfill orders from customer. If not addressed it will lead to a much worse problem. That is why you need to know your inventory as accurate as possible to help you manage those materials.

4. Always Provide Cash Reserve For Unexpected Events
Cash reserves can save your business from going downhill in case unexpected events arise. Having at least 3 months worth amounts of cash can fill emergency funding needs.

5. Reduce Cash Outflow Expenses
If the cash outflow in your business is bigger than the inflows, you need to reduce the expenses to amend the problems. It is time for you to write down where your expenses go and decide which ones you should focus on and which ones should be stopped.

How To Find Business Cash Flow Management Services In Malaysia

If you are in need of cash flow management services in Malaysia, here are tips to find a good services. Make sure the the services include the following criteria:
• Providing Reports of daily cash flows. This includes sales, expenses and deposits.
• The service can keep a check on accounts payables as well as receivables.
• It provides credit card reconciliation reports.
• Financial risk management.
• Bank statements reconciliation.
• Cash flow budgeting.
• Cash flow planning and forecasting.
• It provides fraud management strategies.
• Financial contracts review.

Car Refinance Compare with House Refinance in Malaysia

16
Jan

By: editor2 Articles No Comments

All Things You Should Know About Refinancing Car in Malaysia 2023

In year 2023 do you need an additional loan to reduce your financial payments? Are your loans depleting your cash flow? If you are looking for a solution to help you accomplish your car loan, perhaps you need to know the term refinancing car forward.

Nowadays, there are many solutions provided by several banks or financial institutions for funding your needs, particularly your car loan. This process is called refinancing a car loan, which helps you to reduce your interest rate and financial commitment.

In Malaysia, you can find out how to refinance your car loan in easy ways. However, before deciding to refinance your car loan, you need to know all things related to refinancing your car below.

What are the crucial reasons to refinance?

Everyone has their own reasons before choosing to refinance their car. The following reasons that may be considered by many people, such as the current financial condition, cash flow status, cash needs, car loan duration, etc.

• The current financial condition
People typically choose to refinance because of their current financial condition and they can not pay the loan several times. Hence, they need a new loan to pay off the remaining installment by refinancing their car to the bank or financial institutions.

• Cash flow status
People usually need to get a new loan because their cash flow status is in trouble. They can not pay for the car loan because the remaining monthly income can not cover their monthly needs.

• Cash needs
Another reason people tend to refinance is cash needs. Sometimes, they need cash to pay off loans such as a car loan, house loan, or any needs. Hence, reapplying for a new loan will help to fulfill their needs.

• Car loan duration
How long the car loan can become one of the reasons why people choose to refinance their car. Refinancing for the new car will help them to pay for the long payment period. Moreover, the cash that will be delivered is more valuable than applying for the old car.

• Late payment
The late payment or out of the schedule for paying the installment, it is also implied by the current financial condition. Hence, people tend to refinance to cope with their delayed payment. Refinancing a car will help people to reduce the interest rate and the monthly payment.

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Steps to refinance car

If you are interested in refinancing your loan, these steps may help you to know what you need to do to apply for refinance.

1. Documents needed
The basic things you need to know are all the relevant required documents to apply to refinance a car.
• Personal data such as identification card and driving license.
• Income evidence such as paycheck, pay stub, and tax return.
• Car registration data such as identification number, insurance, gasoline mileage, and the grant number.
• Details of the current loan, such as the current balance of your loan, monthly payment, installment period and the interest rate of the current loan.

2. Review the credit score
Before applying for the refinancing, you need to review your credit score by checking it with Bank Negara Malaysia, Credit Counseling and Debt Management Agency or other related agencies for free. For this credit score, you will get a health score credit if you have paid your loan regularly and on time in a year, so your approval will be easily approved.

3. Create the application
To get the best offering from local banks or financial institutions, you can create many applicantions to compare the interest rates and benefits. Make sure you send your refinancing applicantion within a period of 14 days.

4. Assess the current value of the car in the market
The car devaluation generally will impact the application status. It can happen because many owners or cars do not know the current value of their car in the market that is underneath than the current balance. Hence, it can impact the possibility of the application being rejected.

To avoid rejection, you can assess the current value of the car in the market by using an online refinancing calculator. You can go forward if your current value is higher than the current loan balance.

5. Recognize the period of loan
There are two periods of loan you can recognize before applying for the loan refinancing.
• Shorter period
The shorter period refers to the loan period in a shorter time. This period of repayment is chosen to keep paying off the amount of loan, the same as the previous payment to cut off the installment or financial obligation faster.

• Longer period
The longer period is suitable for people who have a limited budget and need to reduce the installment commitment by lowering the amount of monthly payment. This longer loan period means you will be in a longer period of repayment with a high rate of interest.

6. Send the documents
Lastly, you can send all the documents and the complete application you have chosen either from a bank or a financial institution. After you send them, determine the kind of loan period you need, either the low rate of interest or a longer period with a high rate of interest.

After the applications are approved by the bank or financial institution, you can start to pay the new installment based on the new loan refinancing while the bank will pay off your past loan.

There are advantages and disadvantages to applying for loan refinancing. The advantages of refinancing are the reduction of financial payment, reduction of the interest rate and the appropriate financial payment. Meanwhile, the disadvantages of loan refinancing are the increase of your overall loan and acquiring an additional cost of liabilities. Hence, before deciding to refinance your car loan, consider all things, including the following consequences.

Apa maksud Pinjaman Berasaskan Cagaran di Malaysia

13
Jan

By: editor2 Articles No Comments

A Glimpse of Malaysia’s Financial Forecast 2023

Malaysia’s economy is the third largest in Southeast Asia. The inflation rate which is only around 0.4%, with a poverty rate of 3.5%, makes Malaysia one of the countries whose economy developed rapidly after the 1998 economic crisis that fluctuated in most Asian countries.

Meanwhile, Malaysia is known for its abundant agricultural industry, especially in the production of rubber and coconut oil. Its major export partners are from China, Singapore, Thailand, as well as the United States. Continuing exports are mainly in parts of electronic equipment, liquefied natural gas, wood products, rubber and also textiles. Malaysia also successfully gained a good rank for their ease of doing business worldwide.

In addition, Malaysia’s financial forecast is expected to grow moderately between 4-5 percent up to next year, compared to 6.5-7 percent this year. This growth mainly depends on the construction sector (4.7 percent), manufacturing (3.9 percent), agriculture (2.3 percent) and also mining (1.1 percent).

So, what are the things involved in the financial forecast of Malaysia this year?

9 Main Focus of the 12th Malaysian Plan

The Malaysian Plan is a state development program made every 5 years. The 12th draft is forecasted to make Malaysia a high-income economy by 2025, eradicate poverty, increase the contribution of small businesses to total economic output, just to name a few.

Around RM400 billion is allocated for the new and ongoing projects. The 12th Malaysian Plan is the largest funded plan ever. Previously, the 11th Malaysian Plan, designed in 2016, only allocated around 54 percent of the current draft.

The 12th Malaysian Plan themed “Malaysia Prosperous, Inclusive and Sustainable”, will have nine main focuses. It was presented by Malaysia’s Prime Minister, Datuk Seri Ismail Sabri Yaakob, the 12th plan was enacted when the world was facing the unpleasant challenges of the Covid-19 pandemic and was an important plan as a complement to the Malaysian National Recovery Plan. Thus, restoring the speed of economic growth and achieving long-term development financial forecasts.

The main focus amongst this forecast is getting Malaysia’s economy back on track, especially following the negative impact of the Covid-19 pandemic. The 12th Malaysian Plan also pays special attention to closing income and development gaps in some of Malaysia’s less developed states, such as Sabah and Sarawak.

Basically, the 12th Malaysian Plan forecasts for the period of 2021-2025 includes nine main focuses:

● Boost economic growth,
● Strengthening growth catalyst management,
● Improve the well-being of Malaysian families,
● Strengthening security and public order and eradicating extreme poverty and bridging the income gap,
● Empower the Bumiputera Agenda and Malaysian families,
● Boost the development of Sabah, Sarawak and other less developed states,
● Accelerate green growth,
● Improve the efficiency of public service delivery,
● Ensure an effective policy implementation.

That was a glimpse of the forecast in the 12th Malaysian Plan. Thus, find out the things that are driving the soaring economy of Malaysia starting from the second quarter of 2022.

Malaysia’s Economic Forecast Escalated Since the 2nd Quarter 2022

As mentioned earlier, Malaysia’s economic forecast is predicted to grow 6.7% year-on-year (y-o-y) in the second quarter of 2022. What’s the reason of this growth? This solid economic growth was due to the reopening of the Covid-19 strict restrictions in April which brought people’s activities back to normal. Thus, followed by a low base effect that makes Malaysia’s economy on the rise until now. In addition, this percentage is higher than the first quarter, which was about 5% y-o-y.

Here are some other reasons Malaysia’s economy is soaring:

● A sharp 30% y-o-y jump in the second quarter of 2022 export growth. Whereas, the export growth of 22% comes from the first quarter.

● Malaysia’s past economic forecast is also supported by an increasing labor market that boosts the power of purchasing. Where, the labor market has increased with the unemployment rate declining to 3.9% in May 2022.

● While wholesale and retail trade sales also experienced a better surge, around 19.9% increase and manufacturing sales increased 15.7% also supported the growth.

However, the Malaysian economy will still be overshadowed by the global economic slowdown and the increase in the benchmark interest rate of the United States central bank (The Fed). Thus, the overall export growth is doing well, but only its open economy is facing some challenges. Besides the challenges driven by the US Fed, Europe’s energy insecurity from the Russia-Ukraine war, and even as China tries to recover from the pandemic-induced lockdowns are real proof of the challenges so far.

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Car Refinance Compare with House Refinance in Malaysia

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5 Things About the World Bank’s View of Malaysia’s Financial Forecast

Globally, a 2023 world economy forecast, which was seen on social media, some countries are about to experience a recession. Despite the news that shocked the public, the World Bank seems to have a different view of the country of Malaysia. Here’s the World Bank’s view of Malaysia’s economy:

● Malaysia’s economy is still strong— Malaysia still has the impact of inflation, especially with the increase in food prices of more than 7%, and also the lack of domestic workers as factors that affect the development of the country’s economy. However, the National Bank of Malaysia increased the Overnight Policy Rate (OPR) will help overcome inflation and future economic pressures.

● Malaysia’s GDP will increase in 2022, and will stabilize in 2023– Although Malaysia’s Ringgit is weakened, its economy is still good for 2022 compared to some other countries in Southeast Asia. The World Bank is once again positive about Malaysia’s economic development by targeting the GDP from 4.2% previously, to 4.5%.

● Long-term projects help the national economy— Through the increase in long-term projects that have been invested in before, the World Bank is also confident that these projects will help Malaysia meet the economic challenges by 2023.

● Malaysia towards a high income country— The presence of new investors and an increase in earnings will occur slowly.

● Malaysia’s tourism industry is expected to increase— The World Bank is positively in Malaysia’s economic development through the tourism sector. More and more countries have started allowing out-of-state travelers and accepting travelers from overseas.

That would be a glimpse of Malaysia’s financial forecast in the next few years. In essence, the Malaysian economy is forecasted to be stable and slowly improve. Thus, the country will not be affected by the recession.