USEFULL GUIDELINE FOR BUSINESS PROPOSAL

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A. What is / are a Business Visions / Objectives?
B. What Should Your Business Plan Include?
1. An Introduction to Your Plan.
2. Who You Are and What Your Business Does.
3. Industry, Competitors & Business Strategy.
4. Financials Past, Present and Future.
5. Other Supporting Documents.
C. Assessment on Borrowers Creditworthiness.
The 5Cs of Credit
1. Character.
2. Capacity.
3. Capital.
4. Condition.
5. Collateral.
D. Checklist for Application of New Banking Facilities

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A. What is / are a Business Visions / Objectives

1. Your business Visions / Objectives.

- Identify the business vision
2. How the business is to be managed to achieve the objectives.
- Draw the business goals and objectives
B. What should Your Business Plan Include?
1.
2.
3.
4.
5.

An Introduction to Your Plan.

Who You Are and What Your Business Does.
Industry, Competitors and Business Strategy.
Financial Past, Present and Future.
Other Supporting Documents.
1. An Introduction to Your Plan
1.1 Business existence/Financials Position/Request.
It is important to mention:
- The financials strength of the business.
- The type of business and the business positions in the
industry.
Should the business required financial assistance from Financial
Institutions and other agencies, proposal to be considered is as
follows:
1.1.1
1.1.2
1.1.3
1.1.4

Type of facility.
Amount required.
Purpose for facility requested.
Repayment ability.

2. Who You are and What Your Business Does

2.1 Business Background and History.
2.1.1 When its first registered and location of the company doing
such business.
2.1.2 Type of business registered. E.g Enterprise or Sdn Bhd.
2.2 Business and Product.
2.2.1 A description of your product(s), pictures / samples.
2.3 Directors & Management Profile.
2.3.1 Organization Chart, Track Record.
2.4 Business Cycle
2.4.1 Your Buyers & Sellers
2.4.2 The payment terms of your Business Dealings.
2.5 Production Process.
2.5.1 The process involved in producing your Product(s),
Production, Capacity, Volume etc.
3. Industry, Competitors & Business Strategy
3.1 Industry Overview
3.1.1 Describe the industry you operate in and how your business
fits in this industry.
3.2 Who Your Competitors
Strengths
Weaknesses

Opportunities
Threats

3.3 What Is Your Business Strategy

3.3.1 Briefly describe your unique value proposition. For
example:- Cut operational costs.
- Reduce business risk.
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- Create brand value.

- Generate revenue from new sources.
- Transform your company into an innovative market
leader ahead of the competition.
3.4 Sales & Marketing Strategies
4. Financials Past, Present & Future.
4.1 3 Years Historical Audited Accounts.
4.2 Latest Management Accounts.
4.3 Detail Project Cash Flow.
4.4 Bank Statements & Loan Statements.
4.5 Repayment Record.

5. Other Supporting Documents.

5.1 Memorandum & Articles (M&A) or Business Registration
(Form A & D), Business License & Partnership Agreement.
5.2 Registrar of Companies (SSM) Forms.
- Form 24
- Form 44
- Form 49
- Annual Return
5.3 Creditors & Debtors Details & Ageing Listing.
5.4 Completed Contract, Contracts In Hand.
5.5 The Collateral Offered.
C. Assessment on Borrowers Creditworthiness
The 5Cs of Credit
1.
2.
3.
4.
5.

Character.
Capacity.
Capital.
Condition.
Collateral.
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1. Character.
- Assessing character of the borrower would include
assessment of the character of the shareholders and
management of the borrower under the following
categories:i)
ii)
iii)
iv)
v)

Genuineness of the borrower eg. Borrowing entity,

organization structure and no of years in the
business.
Integrity of the borrower eg. Company reputation
in the market.
Willingness to repay eg. Companys track record
relating to debt servicing (financial statement,
CCRIS & CTOS).
Management style-eg. Prudent or aggressive
company.
Management lifestyle eg. Management is thrifty or
extravagant. (Management with lavish lifestyle).

2. Capacity
- Ability of the borrower to generate cash flow to repay
the facility.
- The reliability of the cash flow.
- The Managements capacity to generate the cash flow.
3. Capital
- The sufficiency of financial commitment of
shareholders in the business.
4. Conditions
- External factors that can affect the borrowers ability to
repay the facility.
i)
Globalization factors ability to handle
globalization.
ii)
Competition how competition can affect the cash
flow of the borrower.
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iii)

iv)

v)
vi)

Exchange rate fluctuations Import of raw materials

and export of finish product, affects of exchange rate
fluctuations may not be serious as they have natural
hedge.
Economic Cycle the business cycle can affect the
performance of a borrower. In time of recession,
profitability of a company is expected to decline
significantly and this too can affect the ability of the
company to repay their borrowings.
Industry Cycle downturn industry can also affect
the ability of a business to repay the facility.
Regulations changing regulation can also affect the
ability of the company to service their debts. Eg.
Higher tariffs imposed on Malaysia oil palm would
mean lower demand and therefore lower prices and
cash flow.

5. Collateral
- Collateral as the second way out. Type of security to
be obtained for the facilities recommended. Eg.
Tangible security like land and building, plant and
machinery, ships, vehicles, quoted or unquoted shares,
stock in trade and receivables.
Apart from all the above the company should at all time keep a clean
record. The company is to ensure that there are no overdue loans with
other financial institutions and no legal action taken against them.
D. Checklist for Application of New Banking Facilities

Thank You