Working Capital Loans Malaysia 2026
Working capital loans provide short-term financing to cover your business's day-to-day operational expenses. Unlike term loans for specific purchases, working capital loans help you manage cash flow gaps, seasonal demands, and growth opportunities.
What is Working Capital?
Working capital is the money needed to run your business daily:
- Inventory purchases
- Payroll and wages
- Rent and utilities
- Supplier payments
- Marketing expenses
Working Capital Formula: Current Assets - Current Liabilities = Working Capital
Pro Tip
Healthy businesses typically need working capital equal to 2-3 months of operating expenses as a buffer against unexpected situations.
When Do You Need a Working Capital Loan?
Signs You Need Working Capital Financing
- Cash flow gaps between paying suppliers and receiving customer payments
- Seasonal business with peak inventory needs
- Large order that requires upfront material purchase
- Opportunity for bulk purchase discount from suppliers
- Expansion requiring additional inventory/staff before revenue increase
- Emergency or unexpected business expenses
Types of Working Capital Loans
1. Revolving Credit / Overdraft
- Flexible credit line you draw as needed
- Pay interest only on amount used
- Renews annually
- Best for: Ongoing cash flow management
2. Short-Term Loans
- Fixed amount with 3-12 month tenure
- Regular monthly repayments
- Lower rates than revolving credit
- Best for: One-time working capital needs
3. Invoice Financing
- Advance against outstanding invoices
- Up to 80-90% of invoice value
- Repay when customer pays
- Best for: B2B businesses with payment terms
4. Trade Financing
- Finance for import/export activities
- Letters of Credit, Trust Receipts
- Based on trade documents
- Best for: Trading businesses
Working Capital Loan Rates 2026
| Type | Interest Rate | Tenure | Amount |
|---|---|---|---|
| Bank Overdraft | 6-8% p.a. | Revolving | Up to RM2M |
| Term Loan | 5-9% p.a. | 1-3 years | RM50k-RM5M |
| Invoice Financing | 12-18% p.a. | Invoice term | Up to 90% invoice |
| Trade Finance | 4-7% p.a. | LC/TR term | Based on trade value |
Eligibility Requirements
Working Capital Loan Requirements
- Business operating minimum 1 year
- Monthly revenue of RM30,000+
- Positive cash flow history
- Valid SSM registration
- Malaysian majority ownership
- No major legal or credit issues
For the complete eligibility checklist and required documents, see our SME Loan Requirements Guide.
Calculate Your Working Capital Needs
Flat Rate: Interest calculated on original principal throughout. Higher effective rate.
Monthly Payment
RM 1,933
Total Interest
RM 15,997
Total Payment
RM 115,997
Free consultation, no obligation
Documents Required
Documents for Working Capital Loan
- SSM registration documents
- Latest 6 months bank statements
- Latest financial statements
- Aging reports (receivables/payables)
- Sales contracts or purchase orders (if applicable)
- Director IC copies
Frequently Asked Questions
Frequently Asked Questions
Disclaimer: Interest rates, loan amounts, and eligibility requirements shown are indicative and subject to change. Contact the respective bank or institution directly for the latest rates and terms. Last reviewed: January 2026.
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