Help Your Business With A Government Loan

Published on: 22 June 2021 Last Updated on: 03 January 2025

The COVID-19 pandemic has caused unforeseen hardships to a lot of entrepreneurs in Malaysia who launched their enterprises in the last couple of years. No one could have estimated the amount of damage to the economy the pandemic would cause or the length of time it would take to recover. The sign of a government loan is like fresh air in the business world, which swift away all your investment-related headaches.

However, there are government loans that you can apply for to help ensure your business survives and has a chance to prosper once the coronavirus has been conquered.

3 Tips For Applying For The Government Loans

The government loans strategy is more robust and well revised. You may be thinking of applying for the loan, but your business is not a big one. You think the government is not willing to lend money to your business. But it is possible.

Here are three easy tips for applying for a government loan.

1. Promoting The Small And Medium Enterprises

These government loan schemes are targeted to help the most financially vulnerable businesses, which are small and medium enterprises (SMEs). SMEs are typically started by well-intentioned but underfunded people who want to put their particular skill-set to use. They might be launched with only a few employees.

Still, by careful management and conservation of their assets, they can grow to make a significant contribution to the state of Malaysia’s economy. The government loan schemes target businesses applying for lower loan totals than a giant corporation would need.

With the world beginning to see the value in micro-finance and recognize the healthy input of small businesses on a country’s economy, the Malaysian government felt that with the effects of the pandemic likely to last for some time, it was the perfect time to offer these loans to the public. The small and the medium enterprises will need significantly less money as the loan, but the success chance is more.

2. Apply Through Existing Financial Institutions

To receive your working capital loan, you apply through an existing financial institution. These are not loans per se but rather government-backed loan guarantees under the Working Capital Guarantee Scheme (WCGS).

You receive the loan through the institution and pay them back directly. The government insures the institution against default. The financial institutes are taking a short period, but as you are now dealing with them, your debt payments period will rise.

Even if you’ve been turned down for a loan by the financial institution because you didn’t qualify under their terms, you can reapply under the terms of the WCGS government loan schemes. Government loans require more guarantees and the assurance of return. When you are applying through the existing financial institute, the process will take a small period for sanctioning.

3. Six Types Of WCGS

The diversity among the business is always present. Therefore, your proposal business planning everything can be different. There are six types of WCGS applying to different people and different kinds of business models. These schemes offer differing amounts of loans as well, so you should choose the scheme to apply for that meets your financial needs.

They each have different qualifications, and you need to read the qualifications of each loan scheme and choose the best one for your situation and business.

WCGS is a loan scheme that offers from 100,000 to 10 million Ringgit.
WCGS-SU is a loan scheme targeting startups that offer from 50,000 to 500,000 Ringgit.
WCGS-B is a loan scheme targeting Bumiputeras that offers from 100,000 to 3 million Ringgit.
WCGS-X is a loan scheme targeting export companies. It offers loans of from 100,000 to 10 million Ringgit.
WCGS-W is a loan scheme targeting Woman-owned businesses. It offers loans of from 100,000 to 1 million Ringgit.
ADGS is a loan scheme targeting companies that engage in automation and digital products and services. It offers from 100,000 to 10 million Ringgit.

To find out more about these government loan scheme’s qualifications, inquire about WCGS schemes with the financial institution that handles your banking.

Conclusion:

Applying for a government loan is making all your hard work easy. Usually, government loans have a low-interest level. The time limit is also going to be more stable. If you follow these tips, you can easily apply for a government loan and start your journey in a more relaxed way.

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5 Financial Risks of Starting a Small Business and How to Avoid Them

Small companies are a vital ingredient of the national economy. In the United States alone, there are 31.7 million small businesses. They provide 64% of all new employment produced in the country. More than half of all small firms fail within the first year, and more than 95% fail during the first 5 years. Furthermore, 66 percent experience financial woes. For 43 percent of small companies, the challenge is paying operating overhead. This happened after work from home became the mainstream, with a majority of Americans working remotely in the year 2020, lowering expenses for businesses to prosper. Additionally, 60 percent of businesses closed as a result of the virus. Here are 5 major financial risks to avoid while establishing your business: 1. Don’t Go Up-Beat With The Prices It is very hard for a business to start with a high price for a product or a service and then tone it down due to lack of engagement. Instead, you should be moderate and even low with the prices at the start because it will get you enough traffic. But don’t rely on those prices for too long because business needs to thrive, start increasing prices gradually. Use customer service and social media to inform the people of the quality you maintain, people always are ready to pay a little extra if they know the quality is maintained. 2. Avoid Taking a Loan if You Don’t Need One Just because you are starting your business, does not necessarily mean that you have to have a good amount on one hand. This type of thinking can stress you out even before the process starts and can numb the creative juices. Furthermore, bank loans are always given with interest, and if your business does not keep up, you might end up in a filthy debt. Try to work with the resources you have and once you have established your name then maybe consider taking out a loan to expand. 3. Think About Having Multiple Business Models In One Business: If you are a product-based business, don’t just rely on that, if you are a service-based corporate, don’t say that the revenue will be generated only from that. Instead, create an online presence and figure out other means of generating revenues as well. Social media campaigns and blogs can help you get ads and thus more revenue from multiple sources. 4. Getting People Employed When You Don’t Have Money It’s true that you are on the road to progress but test your business out with self-help in the first months, and when the processes of revenue generation are smooth, then look for additional help. It will save you from the unnecessary mental pressure of paying someone when you are struggling with profits. 5. Always Get a Legal Framework In Order Work hard on your policies related to customers and services. Invest in getting licit legal help and building the right nest for your legal protection. Getting the right insurance is also a part of building your legal frameworks. Talisman Casualty is a leading provider of general liability insurance for small contractors in Las Vegas, you can consider them for your business legalities. Having professional help will aid you in making the right decisions timely. Read Also: Benefits of NBFC Business Loans What Are the Alternatives for Small Business Startup Loans?

Features To Ensure Success Of Your Money Saving Service

We all have plans and dreams. Nonetheless, to implement them we need financial resources. Todays’ advanced technologies offer a solution to collect the sum we need. So, we shall discuss how to design a great saving application to help people build their dreams into reality, and how you as an owner can succeed as well. Interested? Let’s get down to business. Functionalities a money-saving platform should provide Let’s explore what parameters are critical for users. # Profiles It’s pretty obvious that, first of all, a person downloads an app and sets up a personal profile. Try to keep those processes simple and straightforward. People shall fill in a certain form to specify some information, including the financial one. It’s okay if the account activation takes some time since all customers’ details must be processed and verified carefully. We’re dealing with money issues, thus, everything shall be checked adequately. # Bank account involvement A budget framework shall allow the audience to connect their bank accounts. Here the trick is for app owners to cooperate with multiple financial facilities to make such a feature available for every individual. Moreover, it would be amazing if you also find some solutions for those persons who have no bank accounts and who choose other ways to manage their finances. That approach will enlarge your target audience. # Possibility to set several goals Setting goals is a pretty fascinating aspect of an online money resource. Let’s assume that a person starts applying an online system to save some funds and enforce ceratin plans that demand specific monetary investments. It could be anything, say, university fees or vacations. Thus, a user takes advantage of a financial program and sets a goal to implement a particular plan he/she has. If you want to create a successful app, you shall allow your people to name that plan, put deadlines if it’s required, provide a brief description, etc. That’s how a saving procedure starts. In most cases, customers have the following goal variants: travel; vacations; gifts purchasing; nest egg for a rainy day; others. Clients will appreciate not being limited to implement only one plan at a time, so individuals shall be free to set multiple goals to realize their desires. Speaking about allocating funds to specific goals, you could provide a few options here. The thing is that some users would prefer to take the total withdrawing sum and divide it equally between all current plans, while others would rather specify how much money specifically shall be sent to each goal. Just remember to keep your money-saving application customizable. And after a person manages to save the sum he/she put as a target, budget software shall stop allocating funds to that particular goal, however, the money shall still get sent to other ongoing plans, if any. # Withdrawal options Every decent money manager platform shall ensure that its customers can withdraw cash from their accounts when they need to. Moreover, no-fee and no-commission policy will be highly appreciated. Additionally, it would be a brilliant idea to give your people several options to withdraw money. Let’s say, chatbots could be one of the tools. Still, the audience needs to be patient, since the processing of such transactions is time-consuming, meaning, individuals will have to wait for the funds to get returned to their main accounts at their requests. However, you could offer specific options for those who can’t wait: say, you might impose a $1 charge to make transfers instant. It’s your call. # Overdraft-proof Your clients shall not worry about possible overdrafts, thus, think carefully about how you could protect their accounts. You could ask users to determine the amount of money that must remain on their accounts at any time. In such a way, an online financial service won’t be able to take the money, in case that indicated mark is already reached. Nevertheless, if some technical issues occur and a money-saving framework withdraws too much, a specific algorithm shall be launched to refund the difference and reimburse all overdraft fees. Make sure you discuss those options with the development team you hire. # Unique features Nowadays, you can find a great variety of diverse financial resources, thus, your objective is to come up with one-of-a-kind parameters to differ from others. Here’s an idea for you. The reality is that many people have to pay off their debts. Of course, they can simply borrow the amount they need, but it’s better to have several options to deal with those issues. Besides bank loans, people can also resource to online money-saving systems. Your program can help people deal with their debts. Clients can set specific debt settlement goals, attaching their credit cards to your platform. The process could be completely automated, and a specified amount will be allocated to pay creditors. If you impose special conditions, you can help your customers repay debts faster. Think about it. Of course, you can brainstorm more to generate other great unique features to bring a wider audience. # Smart notifications Individuals will enjoy the possibility to communicate with an application they use, and text messages will do the magic. Clients need to know their accounts’ statuses, moreover, the messaging notification system can update users on any important news. The audience might want to set the service to receive requests to write off funds, and more. Additionally, people could use particular code words to launch certain activities. Just be creative, don’t limit yourself, and you’ll find multiple ways to assist your customers making them happy. There’s one more aspect we’d like to discover this time. Benefits a saving app shall provide Every app shall serve to resolve certain problems people have. The below-mentioned ideas are for you to keep the audience pleased with your online solution: Special bonuses. Why not offer your active users certain bonuses, say, a 2% annual bonus? That would be a nice touch of yours. Chatbot assistance. A person might need some financial advice, so think about how chatbots could help with that. Setting numerous goals. As we’ve mentioned earlier, that would be a great idea, since it’ll improve customers’ online experience. Automatized processes. It’s in your hands to help clients enjoy the saving process: let them stipulate the amount to put aside and make your framework to take care of the rest. Regular updates. Don’t allow your audience to feel lost, not knowing what’s happening with their accounts. Update them constantly. Referral bonuses. You could be grateful to people who bring new users to your program by giving them, say, $10 or so. Keep it simple. Individuals will really enjoy your application if it is user-oriented and appealing. Web interface. Some people would rather prefer web resources, so consider developing it as well. We believe our hints and tips will help you consider key aspects of money-saving system development to build a successful and credible service. Read Also: How to Become Financially Stable Before Age 30 How to use IT to Save Your Business Money The Importance Of Saving: The Bedrock of a Bright Financial Future

Why It Is Important For Singles In Their 20s To Get Life Insurance?

Life insurance is a product that may not seem a cause for concern as a single in the early 20s. However, postponing it to a later date or several years ahead might cost you more than you expected. We must buy life insurance early to manage unforeseen commitments and pursue long-term goals with ease. Financial planning with life insurance will assure you benefits, especially low premium rates, extensive cover for your family, and financial security for the entire family. Here are some of the best reasons for singles to opt for life insurance early in the 20s. Reasons to buy life insurance in your 20s: When you are single and being in your 20s, you may be the only earning member of the family - your parents might become your dependents. They survive and manage expenses based on your income. However, as you get older, your commitments start increasing with marriage and children. The income will be increasing but not in tune with the rising liabilities. In case of an unfortunate event like your death, the whole family will suffer. If you have a life insurance cover, the life cover payout will ensure financial security for the family in your absence. In the early 20s, the insurer will provide insurance plans with a lower premium rate. This is primarily because you are healthy and fit at that age, and the risk involved is comparatively less. When you opt for term insurance with a higher sum assured, medical tests are mandatory. At a younger age, you won’t have any pre-existing ailments. So, the application gets approved for a minimal premium rate. And during a claim, it will not get rejected due to the submission of a healthy medical test report initially. Even being single, you have to plan your financial commitments way ahead. Life insurance comes with additional benefits like riders, guaranteed returns, savings plans, and other investment solutions for any individual. With guaranteed returns, you can pursue your long-term goals, and with investment plans like ULIP, you can get insured and invest for growth. There are also guaranteed savings plans that will provide life cover and regular income after a set period of time. The early you invest with the best life insurance, the higher is the sum assured. There are also high possibilities that you may have an educational loan. If the installment is fairly higher, then the payout from guaranteed returns plans can help you pay off a majority of the loan. In case of your unfortunate demise, your family members can pay off the debts with the lump sum assured. Having realized the advantages of life insurance of taking up life insurance as an individual at an early age, you must put the plan into action. It will encourage you to start your life with a disciplined approach to secure your life. Before choosing the right plan: Spend some time analyzing your financial position, career goal, long-term plans, and financial commitments. Research through the variety of plans available and select the best with expert advice. Comprehensive Insurance Cover for your 20s: Comprehensive life insurance plans are the perfect life cover to buy when you start your insurance journey. These plans combine affordable savings-cum-insurance cover and health-based riders. Thus, true to their name, they offer comprehensive protection - life, health, and savings! You can buy a comprehensive life insurance plan to secure your family’s future and ensure a lump sum payout so that they can lead a financially independent life. The guaranteed returns from the savings component help you fulfill your dreams and financial goals. Finally, the health-based riders assure protection and financial support during medical emergencies, especially on the diagnosis of critical and terminal illnesses. In conclusion: The avenues for insurance and investments are increasing every day. You can purchase life insurance online and get the necessary assistance at ease. In your 20s, before you start spending money on luxuries, allocate it for insurance and investments to stay financially independent in the present and later during the future. Keep in mind, the early you get insured, the better are your prospects, and the safest is your loved ones! Read Also: How Private Hire Insurance Takes You Out from Problems? Four Different Types of Insurance Everyone Needs How to Get Low-Cost Life Insurance for Seniors

Help Your Business With A Government Loan

3 Tips For Applying For The Government Loans

1. Promoting The Small And Medium Enterprises

2. Apply Through Existing Financial Institutions

3. Six Types Of WCGS

Conclusion:

Stocks Versus Real Estate: Which Is The Better Investing Option?

5 Financial Risks of Starting a Small Business and How to Avoid Them

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

5 Financial Risks of Starting a Small Business and How to Avoid Them

Features To Ensure Success Of Your Money Saving Service

Why It Is Important For Singles In Their 20s To Get Life Insurance?

Help Your Business With A Government Loan

3 Tips For Applying For The Government Loans

1. Promoting The Small And Medium Enterprises

2. Apply Through Existing Financial Institutions

3. Six Types Of WCGS

Conclusion:

Share this Article

Stocks Versus Real Estate: Which Is The Better Investing Option?

5 Financial Risks of Starting a Small Business and How to Avoid Them

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related