‘Try applying relief funds from different banks’

GEORGE TOWN: Small and medium enterprises (SMEs) should apply to different banks for the Special Relief Fund (SRF) to increase their chances of securing the loan.

A fast-food company director, Janice Yeo, said initially she applied to only one bank.

“A friend then advised me to apply to different banks as each bank has its own loan conditions and policies. It took me two weeks to get my loan approved and it was from a bank with which I don’t even have an account, ” she said.

“A bank rejected me because it said my company does not qualify as an SME, which is shocking.

“Another bank rejected my application on the basis that my partner does not qualify as an SME entrepreneur.

“Instead of just rejecting the loan applications, the banks should advise SMEs on the supporting documents they need to submit to ensure their applications are approved.

“Banks should also consider talking to the suppliers of SMEs to get an idea of their payment track record.

Small and Medium Enterprises Association Malaysia national secretary SH Yeoh said SMEs should apply to banks where they already have a loan facility.

“Most banks prefer lending to their existing customers. Perhaps the Federal Government should come out with a standardised guideline for banks to follow on the SRF.

“So far about 10% of our 2,000 members have received approvals for loans under the SRF.

“We have also received complaints from suppliers who are unable to deliver to their customers who are on the essential service list on the island because of the movement control order, ” he said.