With almost a year of partial and full lockdowns implemented in Malaysia due to COVID-19, the toll on many businesses has been heavy and taxing. One of the most severe ways that businesses have been impacted is the dire lack of cash-flow. Though there have been commendable efforts by the Government to provide bank loans to businesses in the form of the Penjana SME Financing Scheme, some banks still have a strict, though slightly loosened, credit criteria resulting in many micro, small and medium enterprises (MSMEs) falling through the net. With bank loans proving to be increasingly difficult to obtain, many small businesses are suffering and struggling to stay afloat.
Fortunately, there are regulated, alternative financing options available for businesses in this lovely country of ours, namely ECF (Equity Crowdfunding) and P2P (Peer-to-Peer) Financing. With 21 Securities Commission Malaysia (SC) regulated operators, and microLEAP being one of them, these small businesses have a variety of options to choose from when it comes to alternative financing. From Shariah-compliant to Conventional and from micro to SME financing; this SC-regulated space caters to all MSMEs.
Amid a turbulent economical period, MSMEs that have raised financing may be perplexed as to how to make the best use of this financial support. Here are some suggestions on how small businesses may look to wisely spend once they have successfully raised their financing during highly uncertain times: