Change of Government policy

On 29 Oct, major local newspapers have front paged the Government announcement on the overhaul of NAP (National Automotive Policy). Among the key measures to be implemented include prohibition of import of used auto parts from June 2011.

What is the implication of this message from the perspective of bank facility?

Everybody knows importers of cars used parts, especially from Japan, have been making good profit from the trade for years. If you are one of these importers and have been relying on bank facilities to facilitate your imports, don’t you think your bankers is already trying to structure an exit plan so that your loan can be fully settled by June 2011 which is less than 2 years from now.

If you are now in the business, at least there are 2 things you need to look into :

1. 
   

   Voluntarily restructure your bank facility now by converting partial trade line into term loan so that your outstanding amount is paid down by then. Do not wait until the banks come to you and recall your facilities without yourself preparing for it.

   
   
2. 
   

   Tighten your credit policy if you are giving credit term to your dealers. This will helps you generate sufficient cashflow to meet the above term loan repayment and to prevent huge bad debt when other banks recall the bank facility of your dealers later.

   
   

This message is also useful for other trades which are sensitive to change of Government’s policies from time to time.

Case study 3 – Resubmission of application

Some banks has a policy that says an application which has been rejected within certain time frame is not allowed to re-submit its new application again.

My client recently submitted its fresh application to a bank which has rejected his application about 6 months ago for some non-compliance issues. Thinking that the company had rectified all those non-compliance issues and re-submit its application, the borrower was told that the bank is unable to accept its fresh application for its previous unsuccessful record.

My advice, do not submit your full documents to a bank for official application. Discuss with the bank officer if you have any special requests which may trigger any of the non-compliance issues. For eg. one of the director not able to stand as a guarantor or you want a very high proportion of overdraft facility. Remember, these requests are not to banks’ favour.

If you put in an official application with these special requests, very likely your application will be rejected and leave a record in the bank system that your application has been “REJECTED”.

SME FINANCING IN MALAYSIA

SME loan is a much talk about topic among Malaysian SME/SMI enterpreneurs. While some SME may already knew very well the various schemes and structures of SME bank loan available, most are still lack of in-depth knowledge on this topic.

In this blog, we will discuss on all issues relating to  SME/SMI financing from many perspectives including many difficulties faced by enterpreneurs in obtaining bank facility, how to prepare for the application, general terms used in the banking industry and other related topics arises from time to time.

YOUR GUIDE TO SME FINANCING

SME FINANCING IN MALAYSIA

Case study 3 – Resubmission of application

Change of Government policy

If the bank offer me business loan, should I take it ?

Case study 2 – Sudden increase in turnover

Provider of fully integrated banking software solutions

Probanx Information Systems specializes in development of software for the financial institutions, offering multi-currency and multi-lingual banking systems with a large variety of modules, based on the latest technologies.http://www.probanx.com We install and support turn-key international banking software solutions for retail banks, commercial banks, Internet banks and micro finance banks.

Corporate Overview

Probanx Information System Ltd (Probanx) is a German managed banking software company developing comprehensive IT solutions exclusively to the financial institutions around the globe.

Probanx products portfolio meets requirements of  Retail Banking, Corporate Banking, Private Banking, Offshore Banking and Internet Banking and Micro Finance Banking.

Probanx is a Microsoft Certified Partner since 2002. We have a number of the business partners in Europe, Middle East and Africa and a global support centre located in the heart of Nicosia, Cyprus.

Probanx specializes in working with small to mid size international financial institutions providing them fully integrated software solutions, which are tailored to the requirements of those clients, at a very reasonable cost.

Probanx customers are located on four continents: Europe, Africa, Asia and Australia.

Probanx addresses its products and services to the clients worldwide, thanks to the network of partners. Our partners add value to our products and expertise by understanding unique local banking market requirements and providing local support.http://www.probanx.com

We are proud of our personal commitment to all our clients to provide superior service and support at all times. We are also committed to continually improve our software, implementing international banking practices and stay ahead of the competition using latest information technology.

HQ office of Probanx  in the heart of Nicosia.

hard money loan

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.  http://en.wikipedia.org/wiki/Hard_money_loan
Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 65–70%. That is, if the property is worth $100,000, the lender would advance $65,000–70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

M-Secure Banking

In today’s networked world of the internet, the browser and e-mail are the ubiquitous software tools used for information exchange. When applied to the world of electronic banking, bill payment, and ecommerce, the internet is the haven for hackers to steal and commandeer the identity of others and perpetrate fraud. Literally, billions of dollars are lost each year to these nefarious schemes, not to mention the impugned reputations of the masqueraded individuals and the legitimate companies with which they do business.
Online Banking Solutions (OBS) has developed a suite of products designed to minimize internet fraud and risk.
M-Secure Browser: a hardened internet browser with integrated two-factor and mutual authentication and the new M-Secure Virtual Keyboard.
Single Sign-On Service (SSO) for easy-to-use and secure user access to multiple bank web appplciations.
Features include:

• Validation of the M-Secure Browser software during startup
• Strong authentication to prove identity of user
• M-Secure Keyboard to prevent harvesting of private information via keyloggers
• One-time, time-perishable passcode generation/utilization
• Restricted and controlled destination/URL list per user
• Strong authentication of destination web sites (prevents pharming)
• Single Sign-On (SSO) and user credential management for identified web sites

Download a viewable schematic here.