The document defines SME financing as loans provided to small and medium enterprises for working capital and asset acquisition purposes. Eligible SMEs include operating companies and investment holding companies. SME financing provides term loans, overdraft facilities, and tradelines up to RM5 million for purposes such as acquisitions, refinancing, working capital, with loan tenures up to 20 years and advance margins up to 85% of property value plus working capital needs. Eligible property types are freehold or leasehold commercial or industrial properties with remaining lease periods over 20 years.

1. New SME Definition – 2014
SME Definition

2. Asset
Lending
Working
Capital
SME Financing
2

3. Term Loan /
Term
Financing-i
Tradelines
Overdraft
/ Cash
Line-i
3
Facility Type

4. Operating co., investment holding co.
Target market
Acquisition, refinancing, remortgage, redraw + Work capital +
Fees
Finance purpose
Up to RM5.0 Million
Finance Amount
Up to 20 years
Loan tenure
Up to 85% + Working Capital
Margin of Advance
(MOA)
Term loan, Overdraft, Tradelines
Facility type
Freehold/leasehold, Commercial/industrial
Property Type
• *remaining lease must be >20 years @ full repayment of financing
SME FINANCING
4