Even a profitable business can run short of cash β stock has to be bought and staff paid before customers settle their invoices. A working capital loan bridges that gap. This guide explains how it works in Malaysia, when to use it, and how to apply through a licensed lender.
What is working capital?
Working capital is the cash your business needs to run day to day β paying for stock, supplies, salaries, rent and utilities. A working capital loan gives you that cash now, repaid in fixed monthly instalments, so operations never stall while you wait to be paid.
When a working capital loan helps
- Slow-paying customers β you've delivered and invoiced, but payment is 30β90 days away.
- Seasonal stock-up β buying inventory before a festive or peak season.
- Payroll and rent β covering fixed costs during a quiet month.
- A sudden opportunity β a bulk order or supplier discount you can't miss.
How much and how long
| Loan amount | Typical tenure |
|---|---|
| RM10,000 β RM50,000 | 6 β 24 months |
| RM50,000 β RM200,000 | 12 β 48 months |
| RM200,000 β RM500,000 | 24 β 60 months |
Working capital loans are usually shorter-term, because they cover a temporary gap rather than a long-term asset. Match the tenure to how quickly your cash flow recovers.
Cost and rules
As a licensed money lender, NexFund charges simple interest within the statutory caps of the Moneylenders Act 1951 β up to 12% per annum secured, 18% per annum unsecured. The rate, instalment and total repayable are set out in your written agreement before you sign, with no upfront fees.
How to apply
- Apply online and tell us the amount and what it's for.
- Our team calls you to confirm details.
- Submit SSM registration, MyKad and your latest 6 months' business bank statements β see the documents guide.
- Get a written offer, then funds to your business account.
Not sure which product fits? Compare options in our main business loan guide and the SME loan guide.
Need cash flow for your business?
Apply in about a minute β our team will call you to go through the options.
Apply NowFrequently asked questions
What is a working capital loan used for?
It funds day-to-day operating costs β stock, supplies, salaries, rent β while you wait for customers to pay. It bridges a short-term cash-flow gap rather than financing a long-term asset.
How quickly can I get working capital financing?
With a licensed lender, a decision can often be made within 24 hours once your SSM, MyKad and business bank statements are complete.
How much working capital can my business borrow?
With NexFund, business financing ranges from RM10,000 to RM500,000, based on your business income and ability to repay.