Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
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<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>Purpose Product Usage Features Benefitsunutilised portionof the facility.fees <strong>for</strong> the unutilisedportion of the overdraftor revolving credit. • Interest is calculatedon a daily basisbased on theoutstanding balanceat the end of eachbusiness day.• Lower financingcosts compared toconventionalfinancinginstruments.• Continuousavailability of funds,as facility can berolled over.Similar to OD, it isshort-term in natureand is used to meetshort-term workingcapital requirements.<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>• A <strong>for</strong>m of loangranted <strong>for</strong> a fixedperiod which can berolled over uponexpiry.• A convenient <strong>for</strong>m ofshort term financing<strong>for</strong> companies withgood financialstanding.• Drawdowns bymeans of a letterfrom the <strong>SME</strong> to thefinancial institutionstating the period ofthe loan required.RevolvingCredit• Cash advances areeasily and quicklyobtainable• No collateralrequired.A method of financing,where the financialinstitution purchasesthe client’s tradeinvoices at a discountTo obtain short termfinancing of tradedebts (sale of goodsto customers oncredit terms).Factoring9797chapter 7-13 p79-181 Eng.indd 978/15/11 5:02:57 PM
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