Business Financing for New Company Malaysia: Complete Guide 2025

Starting a new company in Malaysia is exciting, but securing business financing can feel overwhelming. This comprehensive guide shows you exactly how new companies can get the financing they need - even with no operating history.

Whether you need equipment financing, working capital, or startup funding, you’ll discover proven strategies to get approved quickly and grow your business from day one.

The New Company Challenge: Breaking the Catch-22

When you walk into a bank as a new company and ask for business financing, do you feel that sinking sensation in your stomach when the loan officer says, “How long have you been operating?” and your answer is “3 months”?

When you explain your business plan and they ask for 2 years of financial statements you don’t have, does that frustration build in your chest knowing your great business idea is stuck because of paperwork you literally cannot provide?

When you have a genuine contract from a customer - real revenue waiting - but you need equipment to fulfill it, and the bank says “come back after you’ve been operating for 2 years,” do you feel trapped in that impossible cycle where you need money to make money but can’t get money without already having made money?

This is the new company financing catch-22 that crushes dreams before they start.

Here’s the truth: Traditional banks prefer established businesses because it’s easier for them. But specialist lenders understand that every successful business was once new. Every thriving contractor, every growing logistics company, every profitable manufacturer started with zero operating history.

The solution: Equipment-based financing where the equipment itself provides security, making your business age less critical than your business potential.

Why Equipment Financing Works for New Companies

Your Equipment = Your Collateral

When you finance equipment, the lender has something tangible to secure the loan against. This changes everything for new companies:

Traditional business loan thinking:

• “This company has no history, high risk”
• “No financial statements to analyze”
• “How do we know they’ll pay?”

Equipment financing thinking:

• “This excavator is worth RM300,000”
• “If payments stop, we can recover the equipment”
• “Lower risk because of collateral”

Real example: Ahmad started his construction company in January 2024. Banks rejected his working capital loan because “no operating history.” But he got approved for excavator financing in 5 days because the excavator provided security. Six months later, that excavator generated enough revenue to qualify him for additional business loans.

Types of Equipment New Companies Can Finance

Construction Equipment:

• Excavators (mini to large, even 10+ years old)
• Wheel loaders
• Bulldozers
• Backhoes
• Compactors

Transportation Equipment:

• Lorries and trucks
• Trailers
• Prime movers
• Delivery vans

Warehouse Equipment:

• Forklifts
• Reach stackers
• Pallet jacks
• Conveyor systems

Manufacturing Equipment:

• Production machinery
• Packaging equipment
• Quality control tools
• Material handling systems

Service Equipment:

• Specialized tools
• Cleaning equipment
• Maintenance vehicles
• Technology systems

The 0% Deposit Advantage for New Companies

Here’s something most new business owners don’t know: You can get 100% financing for business equipment with 0% deposit required.

When you’re starting a new company, every ringgit matters. Traditional thinking says “save 20-30% for down payment first.” But that could take years, and opportunities don’t wait.

Instead of waiting years to save RM60,000 for down payment:

• Get approved with 0% deposit
• Start operations immediately
• Generate revenue from day one
• Build business credit history
• Preserve cash for working capital

Why 0% deposit financing exists: Lenders understand that new companies need to preserve cash flow. By offering 100% financing, they help businesses start generating revenue faster, which actually reduces risk because the business becomes profitable sooner.

Equipment that qualifies for 0% deposit:

• High-value, well-maintained equipment
• Popular brands with strong resale value
• Equipment with proven income generation potential
• Applications from directors with strong personal backgrounds

Understanding Your Financing Options

Equipment Hire Purchase vs Leasing

Hire Purchase (Most Popular for New Companies):

• You own the equipment after final payment
• Monthly payments build equity
• Equipment appears on your balance sheet
• Can claim capital allowances for tax benefits
• Can sell or trade equipment if needed

Operating Lease:

• Lower monthly payments
• Equipment doesn’t appear on balance sheet
• Maintenance often included
• More flexibility to upgrade
• No ownership at end (return equipment)

Which is better for new companies?

Hire purchase typically works better because:

• Building equity from day one
• Tax benefits through capital allowances
• Asset ownership strengthens balance sheet
• Can sell equipment to raise capital if needed

Interest Calculation Methods

Reducing Balance (Recommended): Interest calculated on remaining loan balance only. As you pay principal, interest reduces each month.

Example: RM300,000 equipment, 8% p.a., 48 months

• Month 1 interest: RM300,000 × 8% ÷ 12 = RM2,000
• Month 24 interest: RM150,000 × 8% ÷ 12 = RM1,000
• Month 48 interest: RM50,000 × 8% ÷ 12 = RM333

Flat Rate (Avoid if Possible): Interest calculated on original loan amount throughout entire term.

Same example with flat rate:

• Every month interest: RM300,000 × 4% ÷ 12 = RM1,000
• Total interest: RM48,000 vs RM21,000 with reducing balance
• You pay RM27,000 more!

Always ask: “Is this reducing balance or flat rate?” Don’t be misled by lower flat rate percentages.

Step-by-Step Application Process for New Companies

Phase 1: Pre-Application Preparation

Step 1: Define Your Equipment Needs

Be specific about what you need:

• Exact equipment type and specifications
• New vs used (up to 10+ years old equipment can be financed)
• Primary use and revenue generation plan
• Timeline urgency

Step 2: Gather Required Documents

For Individual/Sole Proprietor:

• Malaysian IC or valid work permit
• 6 months personal bank statements
• Income proof:
  • Salary slips (if employed elsewhere)
  • EPF statements
  • Contract or job awards
  • Proof of expertise/experience in the industry

For New Companies (Sdn Bhd/Enterprise):

• Company registration documents (Form 9/24/49)
• Directors’ IC copies
• Company bank statements (even if only 1-3 months)
• Directors’ personal bank statements (6 months)
• Company profile or business plan
• Director CVs showing relevant experience
• Any contracts, quotations, or potential customer agreements

Step 3: Obtain Equipment Quotations

Get official quotations from authorized dealers:

• Include complete specifications
• Show all attachments/accessories included
• Ensure competitive market pricing
• Verify dealer credentials and after-sales support

Phase 2: Application Submission

Method 1: WhatsApp (Fastest Response)

• Number: +60175700889
• Send: IC photo + equipment quotation
• Include brief business description
• Response within 1 hour during business hours

Method 2: Phone Application

• Call: +603-3362 1588
• Speak with financing specialist
• Get preliminary assessment immediately
• Schedule document submission

Method 3: Email Submission

• Email: info@inghengcredit.com
• Attach all documents as PDFs
• Include detailed business plan
• Response within 24 hours

Method 4: Office Visit

• Address: 47A, Jalan Raya Timur, Klang
• Bring all original documents
• Face-to-face consultation
• Immediate document verification

Phase 3: Credit Evaluation Process

Day 1: Initial Review

• Document completeness check
• Preliminary credit assessment
• Equipment valuation verification
• Request any missing documents

Day 2-3: Detailed Analysis

• Personal credit check (directors)
• Income verification and analysis
• Business plan evaluation
• Equipment supplier verification
• Reference checks (if provided)

Evaluation Criteria for New Companies:

Personal Background of Directors (60% weight):

• Credit history and payment behavior
• Industry experience and expertise
• Educational background
• Previous employment history
• Personal income stability

Business Potential (25% weight):

• Market opportunity and demand
• Competitive advantages
• Revenue projections
• Customer contracts or interest
• Business plan quality

Equipment and Security (15% weight):

• Equipment type and condition
• Resale value and market demand
• Insurance requirements
• Maintenance and operational costs

Phase 4: Approval and Terms

Conditional Approval Options:

Sometimes lenders approve with specific conditions:

• “Approved with higher down payment (15% instead of 0%)”
• “Approved with personal guarantee from all directors”
• “Approved pending equipment inspection”
• “Approved with additional security (property charge)”

Don’t be discouraged by conditions - they show the lender wants to work with you.

Negotiation Opportunities:

• Interest rate (based on down payment amount)
• Loan tenure (longer = lower monthly payment)
• Down payment amount
• Personal guarantee requirements

Maximizing Approval Chances: Expert Strategies

Strategy 1: The Business Substance Approach

Show Real Business Activity:

Even as a new company, demonstrate you’re serious:

• Register with relevant authorities (CIDB for construction, etc.)
• Open business bank account and show some activity
• Get business license and permits
• Create professional business cards and letterheads
• Develop simple website or social media presence

Document Your Expertise:

Directors should highlight relevant experience:

• Previous employment in the same industry
• Technical qualifications or certifications
• Training courses completed
• Professional associations membership

Example: Rahman worked 10 years as site supervisor before starting his construction company. He includes his employment letter, technical certificates, and reference from previous employer. This shows he has industry knowledge despite the company being new.

Strategy 2: The Customer Validation Approach

Get Customer Interest Before Applying:

• Obtain quotation requests from potential customers
• Secure letters of intent (not binding contracts)
• Document market research showing demand
• Get testimonials about your personal reputation

Example: Siti wants to start catering equipment rental business. Before applying for commercial kitchen equipment financing, she gets letters from 5 event planners expressing interest in her services. This proves market demand exists.

Strategy 3: The Progressive Application Approach

Start with Smaller Equipment, Build Credit History:

Instead of applying for RM500,000 excavator immediately:

1. Start with RM150,000 mini excavator
2. Make payments perfectly for 6-12 months
3. Apply for additional/larger equipment
4. Use good payment history as proof of reliability

This approach works because:

• Lower risk for first application = higher approval rate
• Established payment history for subsequent applications
• Building business credit profile
• Demonstrating business growth and success

Strategy 4: The Alliance Approach

Partner with Established Players:

• Subcontracting agreements with established contractors
• Supply agreements with established suppliers
• Mentorship from industry veterans
• Joint ventures or partnerships

Why this helps: Lenders see reduced risk when new companies have backing or guaranteed work from established businesses.

Common Rejection Reasons and How to Avoid Them

Rejection Reason 1: Insufficient Personal Income

The Problem: Directors don’t show enough personal income to support business loan payments.

The Solution:

• Include ALL income sources (salary, freelance, rental, etc.)
• Show spouse’s income if applying jointly
• Document informal income with bank deposit patterns
• Consider having higher-income partner as main applicant

Rejection Reason 2: Poor Personal Credit History

The Problem: Directors have bad credit records affecting company application.

The Solution:

• Be upfront about credit issues (don’t hide them)
• Provide explanation letters for each negative entry
• Show recent improvement in payment behavior
• Offer higher down payment to offset risk
• Consider having clean credit director as main applicant

Rejection Reason 3: Unrealistic Business Projections

The Problem: Business plan shows unrealistic revenue or profit projections.

The Solution:

• Use conservative, market-based projections
• Show step-by-step growth plan
• Include market research supporting assumptions
• Compare with similar business benchmarks
• Focus on cash flow, not just revenue

Rejection Reason 4: Insufficient Equipment Understanding

The Problem: Applicant can’t explain how equipment will generate revenue.

The Solution:

• Detail specific revenue streams from equipment
• Show daily/weekly utilization plans
• Identify target customers and market rates
• Explain maintenance and operational costs
• Demonstrate industry knowledge

Alternative Financing Options for New Companies

Option 1: Director Personal Loan + Equipment Purchase

How it works:

• Director applies for personal loan
• Uses proceeds to buy equipment personally
• Rents equipment to company
• Company pays rental to director
• Director uses rental to pay personal loan

Advantages:

• Faster approval (personal loan vs business loan)
• No company credit history required
• Director builds personal credit
• Tax benefits through rental payments

Disadvantages:

• Higher interest rates (personal loan rates)
• Lower loan amounts
• Personal liability only

Option 2: Supplier Financing Programs

How it works:

• Equipment suppliers offer financing directly
• Often through partnership with finance companies
• Application processed by supplier
• Equipment delivered upon approval

Advantages:

• Supplier relationship helps approval
• Streamlined process
• Equipment expertise from supplier
• Maintenance support included

Examples:

• Caterpillar Financial Services
• Komatsu Finance
• Sime Darby Motors finance programs

Option 3: Trade-In Plus Financing

How it works:

• Trade existing equipment/vehicles for down payment
• Finance remaining balance
• Effective way to upgrade without cash

Example:

• Trade old Proton Saga (worth RM15,000)
• Plus RM35,000 cash for RM50,000 down payment
• Finance remaining RM250,000 for RM300,000 excavator

Option 4: Progressive Purchase Plan

How it works:

• Start with equipment rental/lease
• Option to purchase after 6-12 months
• Rental payments count toward purchase price
• Lower initial commitment

When this works:

• Uncertain about equipment suitability
• Want to test market demand first
• Need immediate equipment but financing pending
• Building payment history for future applications

Industry-Specific Financing Tips

Construction Companies

Equipment Priority Order:

1. Start with: Mini excavator or backhoe (most versatile)
2. Add next: Lorry for material transport
3. Expand to: Larger excavators, wheel loaders

Revenue Generation:

• Residential renovation projects (high demand, lower equipment requirements)
• Landscaping and utilities (steady work, good margins)
• Subcontracting to major developers

Key Success Factors:

• Get CIDB registration immediately
• Join contractor associations (MBAM, etc.)
• Build relationships with developers and consultants

Logistics Companies

Equipment Priority Order:

1. Start with: 1-3 ton lorry (most flexible)
2. Add next: Larger trucks for specific routes
3. Expand to: Trailers, prime movers for long haul

Revenue Generation:

• E-commerce delivery (growing market)
• Construction material transport
• Furniture delivery services
• Inter-state freight

Key Success Factors:

• Get commercial vehicle license
• Register with freight associations
• Develop relationships with freight forwarders

Manufacturing Companies

Equipment Priority Order:

1. Start with: Core production equipment
2. Add next: Material handling (forklifts)
3. Expand to: Packaging and quality control equipment

Revenue Generation:

• Contract manufacturing for established brands
• Private label production
• Export market opportunities

Key Success Factors:

• Focus on specific niche markets
• Get quality certifications (ISO, HACCP)
• Build relationships with raw material suppliers

Food & Beverage Companies

Equipment Priority Order:

1. Start with: Basic food preparation equipment
2. Add next: Refrigeration and storage
3. Expand to: Packaging and delivery vehicles

Revenue Generation:

• Catering services for events
• Food delivery platforms
• Wholesale to restaurants

Key Success Factors:

• Get food safety certifications
• Register with relevant health authorities
• Build hygiene and quality systems

Building Business Credit for Future Growth

Establish Credit Profile from Day One

Business Bank Account:

• Open with major bank (Maybank, CIMB, Public Bank)
• Maintain positive balance
• Show regular business transactions
• Avoid overdrafts in first year

Business Credit Cards:

• Apply for business credit cards
• Use for equipment maintenance expenses
• Pay full balance monthly
• Keep utilization under 30%

Supplier Trade Credit:

• Negotiate 30-day payment terms with suppliers
• Pay exactly on time (not early, not late)
• Request supplier to report payments to credit bureaus

Financial Record Keeping

Monthly Financial Statements: Even new companies should prepare:

• Profit & loss statement
• Balance sheet
• Cash flow statement
• Aged debtors and creditors

Digital Accounting System: Use software like:

• SQL Accounting
• AutoCount
• MYOB
• QuickBooks

Professional Support:

• Engage qualified bookkeeper or accountant
• Ensure tax compliance from start
• Get audited accounts if revenue grows

Advanced Financing Strategies

Multiple Equipment Financing

Sequential Approach:

• Equipment 1: Apply and get approved
• Make 6 months perfect payments
• Equipment 2: Apply with payment history
• Approval rates improve with proven track record

Package Approach:

• Apply for multiple equipment simultaneously
• Better rates for larger total financing
• Streamlined documentation process
• Single monthly payment for easier management

Refinancing and Trade-Up Programs

After 12-18 Months:

• Consider refinancing existing equipment at better rates
• Trade older equipment for newer models
• Consolidate multiple payments into single facility

Benefits:

• Lower interest rates (improved credit profile)
• Lower monthly payments (longer tenure)
• Newer, more efficient equipment
• Simplified payment management

Red Flags That Trigger Rejection

Documentation Red Flags

❌ Inconsistent Information: Different company addresses, director names, or financial figures across documents

❌ Poor Quality Documents: Blurry photos, obvious alterations, missing pages

❌ Lack of Supporting Evidence: Claims without documentation backup

✅ Professional Presentation: Clear, organized, consistent documentation

Financial Red Flags

❌ Unusual Banking Patterns: Large deposits without clear source, frequent overdrafts

❌ Debt Service Ratio Too High: Total monthly obligations exceed 60% of income

❌ Unrealistic Projections: Revenue assumptions that exceed industry norms

✅ Conservative Planning: Realistic projections with clear assumptions

Behavioral Red Flags

❌ Evasive Answers: Avoiding direct questions about business or finances

❌ Pressure Tactics: “I need answer today” without valid business reason

❌ Inconsistent Story: Business details change between conversations

✅ Transparency: Open communication about challenges and plans

Success Stories: Real New Company Approvals

Case Study 1: Ahmad’s Construction Startup

Background:

• New Sdn Bhd, 2 months old
• Ahmad worked 8 years as site supervisor
• Wife worked as accounts clerk
• Saved RM30,000 for business

Challenge:

• No company income history
• Needed excavator for government subcontract
• Banks rejected due to “no financial statements”

Solution:

• Applied for used CAT 966D excavator (12 years old)
• Used Ahmad’s industry experience and personal income
• Wife’s stable income supported application
• 20% down payment (RM24,000)
• Balance RM96,000 financed over 36 months

Result:

• Approved in 4 days
• Monthly payment: RM3,200
• Contract generated RM45,000 monthly revenue
• Hired 3 workers within 6 months
• Applied for second excavator in month 8

Case Study 2: Siti’s Food Delivery Business

Background:

• Started catering from home
• Registered company after 6 months
• Needed refrigerated van for expansion
• Previous vehicle loan history excellent

Challenge:

• New company with minimal bank deposits
• Needed specialized vehicle (refrigerated)
• Higher equipment cost (RM180,000)

Solution:

• Highlighted food service industry growth
• Showed contracts with 3 regular customers
• Used personal car as trade-in (RM25,000)
• Applied for used refrigerated Hiace
• Personal guarantee from husband

Result:

• Approved with 15% down payment
• Monthly payment: RM4,100
• Revenue increased 300% within year
• Expanded to 2 vehicles by month 10

Case Study 3: Lim’s Manufacturing Startup

Background:

• Engineer wanting to start electronics assembly
• Company 3 months old
• Had technical expertise, no business experience
• Needed pick-and-place machine

Challenge:

• Specialized equipment (RM220,000)
• No manufacturing experience
• Equipment required technical knowledge
• Limited customer base

Solution:

• Demonstrated technical qualifications
• Showed contract manufacturing agreement
• Equipment supplier provided technical support
• 25% down payment from personal savings

Result:

• Approved after equipment inspection
• Started production immediately
• Built relationships with 5 customers
• Profitable from month 3

Expert Tips for New Company Success

Tip 1: Start Before You Need It

Don’t wait until you desperately need equipment. Start building relationships with lenders early:

• Visit lenders and introduce yourself
• Get pre-qualification estimates
• Understand their requirements
• Build rapport with loan officers

Tip 2: Document Everything

From day one of business operation:

• Keep detailed financial records
• Document customer interactions
• Save all business correspondence
• Track equipment usage and revenue

Tip 3: Network Within Your Industry

• Join relevant business associations
• Attend trade shows and events
• Build relationships with suppliers
• Connect with potential customers

Tip 4: Be Patient with Growth

Resist the urge to finance too much too quickly:

• Start with essential equipment only
• Prove revenue generation first
• Add equipment as business grows
• Maintain healthy cash flow

Tip 5: Plan for Maintenance

Budget for ongoing costs:

• Regular maintenance and repairs
• Insurance premiums
• Registration and licensing fees
• Replacement parts and consumables

Taking Action: Your Next Steps

Immediate Actions (This Week):

1. Define Your Needs: List specific equipment required and revenue plans
2. Gather Documents: Collect all required documentation
3. Get Quotations: Obtain equipment quotes from 2-3 suppliers
4. Research Lenders: Identify 2-3 suitable financing providers
5. Make Contact: Reach out for preliminary discussions

Short-term Actions (This Month):

1. Submit Applications: Apply to your chosen lenders
2. Follow Up Actively: Respond quickly to all requests
3. Prepare for Inspection: Arrange equipment viewing if required
4. Review Terms: Carefully evaluate all approval offers
5. Make Decision: Choose best terms and proceed to documentation

Long-term Actions (Next 6 Months):

1. Make Payments Perfectly: Build excellent payment history
2. Track Revenue: Document equipment revenue generation
3. Plan Expansion: Identify additional equipment needs
4. Build Relationships: Maintain contact with lenders for future needs

Ready to Start Your Business Financing Journey?

Starting a new company in Malaysia doesn’t have to mean waiting years for financing. With the right approach and expert guidance, you can get the equipment financing you need to start generating revenue immediately.

Contact Ing Heng Credit today for new company business financing:

• WhatsApp: +60175700889 (Fast response for new companies)
• Phone: +603-3362 1588
• Email: info@inghengcredit.com
• Visit: 47A, Jalan Raya Timur, Taman Rashna, 41200 Klang

What You’ll Get:

• Honest assessment of your financing prospects
• Clear explanation of requirements and options
• Competitive rates starting from 7.5% p.a.
• 0% deposit options for qualified applicants
• Fast approval process with dedicated support
• 40+ years experience helping businesses grow

Operating Hours: Monday-Friday 9AM-6PM, Saturday 9AM-1PM

Don’t let lack of operating history stop your business dreams. Every successful company started exactly where you are now. Take the first step today.

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About the Author:

This guide was created by Ing Heng Credit & Leasing, Malaysia’s trusted business equipment financing specialist since 1985. We’ve helped thousands of new companies get their first equipment financing and grow into industry leaders.