Restaurant Financing Guide 2025: RM50K-RM2M Loans for Malaysian F&B Business
Restaurant Financing Guide 2025: RM50K-RM2M Loans for Malaysian F&B Business
Complete Guide for Chinese, Malay, and Indian Restaurant Owners
Want to open a restaurant, kopitiam, warung, or mamak shop in Malaysia? Or need money to renovate, buy equipment, or expand your existing F&B business?
Getting restaurant financing in Malaysia is CHALLENGING because:
- High failure rate (banks see F&B as risky)
- Need multiple licenses (SSM, DBKL, health permit, halal cert)
- Thin profit margins (15-25% typical)
- Long setup time (6-12 months to break even)
But it's NOT impossible! This guide shows you 14 proven ways to get RM50,000 to RM2,000,000 for your Malaysian restaurant business.
Table of Contents
- Types of Restaurant Financing Needed
- Bank Loans for Restaurants
- Government Schemes (SME Bank, TEKUN, MARA)
- Equipment Financing & Leasing
- Franchise Financing (Secret Recipe, OldTown, etc.)
- Renovation & Interior Loans
- Working Capital for F&B
- Halal Certification Financing
- Required Documents for Restaurant Loan
- How to Improve Approval Chances
- Success Stories (Chinese, Malay, Indian Restaurants)
- Common Mistakes to Avoid
- F&B Business Plan Template
- FAQ
Types of Restaurant Financing Needed {#types-of-financing}
What Do Restaurant Owners Borrow For?
1. Startup Capital (New Restaurant)
Typical Breakdown for Small Restaurant (30-40 seats):
Rental deposit (3 months): RM15,000
Renovation & interior: RM80,000 - RM150,000
Kitchen equipment: RM50,000 - RM100,000
Furniture & fixtures: RM20,000 - RM40,000
Licenses & permits: RM5,000 - RM10,000
Initial inventory: RM10,000 - RM20,000
Marketing & signage: RM5,000 - RM10,000
Working capital (3 months): RM30,000 - RM50,000
TOTAL: RM215,000 - RM395,000
Most new restaurants need RM200,000 - RM500,000 to start.
2. Expansion Capital (Existing Restaurant)
Opening 2nd branch:
- New location deposit: RM20,000
- Renovation: RM100,000
- Equipment (replicate 1st branch): RM60,000
- Initial stock & marketing: RM20,000
- TOTAL: RM200,000+
Expanding existing restaurant:
- Extend to next unit: RM80,000 - RM150,000
- Add new kitchen section: RM50,000 - RM80,000
- Buy new equipment: RM30,000 - RM60,000
3. Equipment Purchase
Essential Kitchen Equipment:
Commercial stove (4-6 burners): RM8,000 - RM15,000
Deep fryer: RM3,000 - RM6,000
Commercial refrigerator: RM5,000 - RM12,000
Freezer: RM4,000 - RM8,000
Dishwasher (commercial): RM8,000 - RM15,000
Exhaust hood & ventilation: RM10,000 - RM25,000
Prep tables (stainless steel): RM2,000 - RM5,000
Rice cooker (commercial): RM1,500 - RM3,000
Blender/mixer: RM1,000 - RM2,000
POS system: RM3,000 - RM8,000
Full kitchen setup: RM50,000 - RM120,000
4. Renovation & Refurbishment
Basic kopitiam/mamak renovation: RM50,000 - RM100,000
Mid-range restaurant (air-cond, proper design): RM100,000 - RM250,000
Upscale restaurant (premium finishes): RM250,000 - RM500,000+
5. Working Capital (Daily Operations)
Monthly operating expenses (40-50 seat restaurant):
Rent: RM8,000 - RM15,000
Staff salary (10 staff): RM15,000 - RM25,000
Food & beverage cost: RM20,000 - RM40,000 (40-50% of sales)
Utilities (electric, water, gas): RM3,000 - RM6,000
Marketing & delivery platforms: RM2,000 - RM5,000
Misc (repairs, supplies): RM2,000 - RM4,000
TOTAL: RM50,000 - RM95,000/month
Need 3-6 months working capital reserve: RM150,000 - RM570,000
Bank Loans for Restaurants {#bank-loans}
1. SME Bank - Hospitality & Tourism Financing
Best for: Established restaurants wanting to expand
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | RM100,000 - RM10,000,000 |
| Interest Rate | BLR - 2% (~4.5-6% p.a. - VERY LOW!) |
| Tenure | Up to 15 years |
| Collateral | Required (property or FD) |
| Approval Time | 3-6 weeks |
Eligibility:
✅ Malaysian-owned SME (51% Malaysian equity)
✅ SSM registered business
✅ F&B business operating for at least 1 year
✅ Annual sales RM300,000 - RM50 million
✅ Clean CCRIS/CTOS (no bankruptcy)
✅ Proper business plan
Documents Required:
- SSM registration (Form 24, 49 for Sdn Bhd; Form D for Enterprise)
- Financial statements (last 2 years, audited if revenue > RM500K)
- Bank statements (business account, 6 months)
- Business plan with revenue projections
- Quotations for equipment/renovation (if applicable)
- Rental agreement (shop premises)
- Licenses (DBKL, health permit, etc.)
- IC and CCRIS of directors/owners
- Collateral documents (property title, FD certificate)
How to Apply:
- Visit SME Bank website: https://www.smebank.com.my
- Download "SME Bank Financing Application Form"
- Prepare all documents (checklist above)
- Submit to nearest SME Bank branch (18 branches nationwide)
- Wait for credit evaluation (3-4 weeks)
- If approved, sign loan agreement
- Funds disbursed to your account
Success Rate: 50-60% for existing F&B businesses with track record
Pro Tip: SME Bank favors businesses with:
- Growing sales trend (not declining)
- Good profit margins (above 20%)
- Strong business plan for expansion
- Proper bookkeeping and tax compliance
2. Bank Rakyat - Small Business Financing-i
Best for: Small mamak shops, kopitiams, warung
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | RM10,000 - RM500,000 |
| Interest/Profit Rate | 7% - 12% p.a. |
| Tenure | Up to 10 years |
| Collateral | Optional (depends on amount) |
| Approval Time | 1-2 weeks |
Eligibility:
✅ Malaysian citizen
✅ Age 21-60
✅ SSM registered business (sole prop or Sdn Bhd)
✅ Minimum 6 months operations
✅ Clean CCRIS
Why Good for F&B:
- Accept small businesses (even mamak stall with RM10K monthly sales)
- Islamic financing (Shariah-compliant, good for Muslim restaurateurs)
- Flexible repayment (can adjust if sales slow down)
How to Apply:
- Visit Bank Rakyat branch
- Bring IC, SSM, bank statement, business plan
- Fill application form
- Wait 7-10 days for approval
Website: https://www.bankrakyat.com.my
3. Maybank Islamic - Business Financing-i
Best for: Mid-size restaurants, chains (2-5 outlets)
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | RM50,000 - RM3,000,000 |
| Interest/Profit Rate | 5.5% - 10% p.a. |
| Tenure | Up to 10 years |
| Collateral | Required for loans > RM200K |
| Approval Time | 2-3 weeks |
Eligibility:
✅ SSM registered business
✅ Minimum 1 year operations
✅ Annual sales RM500,000+
✅ Good financial track record
✅ Directors with clean CTOS/CCRIS
Special Programs:
- Maybank Franchise Financing (for franchise restaurants like Secret Recipe, OldTown White Coffee, Texas Chicken)
- Maybank Equipment Financing (up to 100% of equipment cost)
How to Apply:
- Visit Maybank Islamic Business Banking branch
- Request for "SME Business Financing-i"
- Submit documents
- Wait for credit assessment (2-3 weeks)
Website: https://www.maybank2u.com.my
4. RHB Bank - SME Business Financing
Best for: Chinese restaurants, dim sum houses, steamboat restaurants
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | RM50,000 - RM5,000,000 |
| Interest Rate | BR + 2% (~6-8% p.a.) |
| Tenure | Up to 10 years |
| Collateral | Property or corporate guarantee |
| Approval Time | 2-4 weeks |
Eligibility:
✅ Malaysian SME
✅ Operating for at least 2 years
✅ Annual revenue RM500,000+
✅ Profitable for last 2 years
✅ Clean credit record
RHB Specialization:
- Strong in Klang Valley and Northern region (Penang, Kedah)
- Understand Chinese F&B business model well
- 中文服务 (Mandarin-speaking relationship managers available)
How to Apply:
- Contact RHB Business Banking at 03-9206 8118
- Request for SME Financing consultation
- Submit business plan and financial documents
- Attend credit interview
Website: https://www.rhbgroup.com
Government Schemes for F&B Business {#government-schemes}
5. TEKUN Nasional (For Bumiputera Restaurateurs)
Best for: Malay warung, nasi kandar, mamak shops, Malay kuih business
What is TEKUN?
- Government microcredit and SME financing for Bumiputera entrepreneurs
- VERY LOW interest: Only 4% per year!
- Flexible requirements (accept new businesses)
Loan Details:
| Program | Amount | Purpose | Interest |
|---|---|---|---|
| TEKUN Mikro | RM1,000 - RM10,000 | Small warung, food stall startup | 4% p.a. |
| TEKUN Madani | RM10,000 - RM50,000 | Small restaurant, mamak shop | 4% p.a. |
| TEKUN Perdagangan | RM50,000 - RM100,000 | Full restaurant setup | 4% p.a. |
| TEKUN Waralaba | RM50,000 - RM500,000 | Franchise restaurants (MamaMee, etc.) | 4% p.a. |
Eligibility:
✅ Malaysian Bumiputera
✅ Age 18-60
✅ Monthly household income below RM10,000
✅ Want to start or expand F&B business
✅ Willing to attend TEKUN entrepreneur training
No need:
- Clean CTOS (TEKUN more lenient)
- Long business history (can apply even if new!)
- High education (primary school leavers can apply)
How to Apply:
Step 1: Find Nearest TEKUN Office
- Website: https://www.tekun.gov.my
- Call 1-300-88-1800
- 270+ branches nationwide (even in rural areas)
Step 2: Attend Walk-In Consultation
- Bring IC, utility bill, bank statement
- Explain business idea
- TEKUN officer will guide you
Step 3: Prepare Simple Business Plan
- Don't need fancy format!
- Just explain:
- What food you'll sell
- Where (location)
- How much startup cost
- Expected sales per day/month
- How you'll repay loan
Step 4: Submit Application
- Fill form (officer will help)
- Attend entrepreneur training (usually 1-2 days)
- Wait for approval (2-4 weeks)
Success Rate: 70-80% for food businesses (TEKUN loves F&B!)
Real Example:
"Pak Rosli from Kuantan wanted to open nasi kandar stall. He had RM5,000 savings, needed RM25,000 more. Applied TEKUN Madani, approved RM30,000 in 3 weeks. Interest only 4% per year. Now his stall makes RM8,000/month profit!"
6. MARA (For Bumiputera Restaurant Entrepreneurs)
Best for: Full-fledged Malay restaurants, cafes, catering businesses
What is MARA?
- Majlis Amanah Rakyat
- Provides loans, training, and premises for Bumiputera businesses
- Has special F&B programs
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | RM50,000 - RM500,000 |
| Interest Rate | 4% - 6% p.a. (subsidized) |
| Tenure | 5-15 years |
| Collateral | Depends on amount (guarantor may suffice) |
| Approval Time | 4-8 weeks |
MARA Special Programs:
1. Pembiayaan Perniagaan Kecil (Small Business Financing)
- For warung, food stalls, small cafes
- RM10,000 - RM100,000
- Can use for equipment, renovation, working capital
2. Skim Francais (Franchise Scheme)
- For buying F&B franchises (like Marrybrown, Nando's, etc.)
- Up to RM500,000
- MARA provides business advisory
3. MARA Entrepreneurship Premises
- MARA owns restaurant premises in certain locations
- Bumiputera can rent at subsidized rate
- Come with financing package
Eligibility:
✅ Malaysian Bumiputera
✅ Age 18-55
✅ SSM registered business
✅ Completed MARA entrepreneurship course (if new business)
✅ Clean CCRIS
How to Apply:
- Visit MARA branch: https://www.mara.gov.my (11 branches)
- Attend MARA entrepreneurship course (compulsory for first-timers)
- Submit business proposal
- Attend panel interview
- If approved, sign agreement
Success Stories:
- "Cik Siti opened Malay restaurant in Setapak using RM150K MARA loan. Now has 3 branches!"
- "Abang Mat got RM80K for food truck business. Daily sales RM3,000!"
7. CGC (Credit Guarantee Corporation) - BizMula-i
Best for: Any Malaysian restaurateur (Malay, Chinese, Indian) wanting lower interest rates
What is CGC?
- Government agency that GUARANTEES your loan to banks
- Banks more willing to approve because CGC bears 80% of risk
- Result: You get better interest rates and higher approval chances!
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | Up to RM300,000 |
| Interest Rate | As low as 3.5% - 7% p.a. (much cheaper than normal!) |
| Tenure | Up to 10 years |
| Guarantee Fee | 0.5% - 2% annually (paid to CGC) |
| Approval Time | 2-4 weeks |
Participating Banks:
- Maybank Islamic
- CIMB Bank
- RHB Bank
- Bank Islam
- Hong Leong Bank
- AmBank
- MBSB Bank
How It Works:
Normal Bank Loan:
You apply RM100,000 → Bank sees you as high risk (F&B failure rate high) → REJECTED
With CGC BizMula:
You apply RM100,000 → Bank approves because CGC guarantees RM80,000 → If you default, bank only loses RM20,000 → APPROVED with lower interest!
Eligibility:
✅ Malaysian SME (any race!)
✅ SSM registered
✅ Operating for at least 6 months
✅ Annual sales up to RM50 million
✅ F&B businesses explicitly accepted
How to Apply:
- Choose a participating bank (e.g., Maybank Islamic)
- Tell bank officer: "I want to apply under CGC BizMula-i scheme"
- Submit application to bank (not to CGC directly)
- Bank evaluates and submits to CGC for guarantee
- If approved, you get loan with lower interest!
Cost:
- Bank interest: 3.5% - 7% p.a.
- CGC guarantee fee: 0.5% - 2% p.a.
- Total cost: 4% - 9% p.a. (still cheaper than normal 10-15%!)
Website: https://www.cgc.com.my
Equipment Financing & Leasing {#equipment-financing}
8. Hong Leong Finance - Equipment Financing
Best for: Buying expensive commercial kitchen equipment
What is Equipment Financing?
- Loan specifically for buying equipment
- The equipment itself is collateral
- Don't need property to secure loan!
Loan Details:
| Feature | Details |
|---|---|
| Loan Amount | RM30,000 - RM1,000,000 |
| Financing Margin | Up to 100% of equipment cost |
| Interest Rate | 6% - 10% p.a. |
| Tenure | 3-7 years |
| Collateral | The equipment itself (chattel mortgage) |
What Can Finance:
✅ Commercial kitchen equipment (stoves, ovens, fryers)
✅ Refrigeration units (freezers, chillers, display fridges)
✅ Dishwashers and cleaning equipment
✅ Exhaust and ventilation systems
✅ POS systems and cash registers
✅ Furniture and fixtures
✅ Delivery vehicles (vans, motorcycles)
How It Works:
You want to buy RM80,000 commercial kitchen equipment:
1. Choose equipment from supplier
2. Get quotation from supplier
3. Apply Hong Leong Equipment Financing
4. Hong Leong pays supplier RM80,000 directly
5. You repay Hong Leong monthly
6. Equipment has charge registered (you own it, but can't sell until loan paid)
Advantages:
- No need property as collateral
- Up to 100% financing (don't need downpayment)
- Fast approval (1-2 weeks)
- Fixed monthly payment (easier to budget)
Eligibility:
✅ Malaysian business
✅ SSM registered
✅ Operating for at least 1 year
✅ Clean CCRIS
✅ Equipment must be new (not used)
How to Apply:
- Website: https://www.hlf.com.my
- Call 03-2084 9000
- Or visit equipment supplier (many have tie-up with Hong Leong Finance)
9. Orix Leasing Malaysia - F&B Equipment Leasing
Best for: Restaurants wanting to conserve cash (lease instead of buy)
What is Leasing?
- You don't buy equipment, you RENT it monthly
- After 3-5 years, equipment becomes yours (or renew lease)
- Advantage: Lower upfront cost
Lease Details:
| Feature | Details |
|---|---|
| Equipment Value | RM20,000 - RM500,000 |
| Lease Tenure | 24-60 months |
| Monthly Rental | 3-5% of equipment value |
| Initial Deposit | 10-20% of value |
| End of Lease | Buy out at RM1 or return equipment |
Example:
Commercial refrigerator worth RM50,000:
Option 1: Buy with loan
- Downpayment: RM10,000
- Monthly payment: RM900 x 60 months = RM54,000 total
Option 2: Lease with Orix
- Initial deposit: RM10,000 (20%)
- Monthly rental: RM1,200 x 48 months = RM57,600
- At end: Buy out at RM1 (you own it)
- Total: RM67,601
Difference: Leasing costs RM13,600 more BUT you preserve RM10K cash for working capital!
When Leasing Makes Sense:
- New restaurant (need to conserve cash)
- Technology equipment (POS systems that upgrade every 3 years)
- Unsure of long-term commitment
- Want tax deduction (lease payments fully deductible)
How to Apply:
- Website: https://www.orix.com.my
- Choose equipment from supplier
- Submit lease application
- Approval within 1 week
- Equipment delivered, start monthly payments
Franchise Financing {#franchise-financing}
10. Franchise-Specific Financing
Best for: Buying F&B franchise rights (Secret Recipe, OldTown White Coffee, KFC, etc.)
Popular Malaysian F&B Franchises:
| Franchise | Initial Investment | Franchise Fee | Royalty | Support |
|---|---|---|---|---|
| Secret Recipe | RM800K - RM1.2M | RM60,000 | 5% sales | Full training + marketing |
| OldTown White Coffee | RM700K - RM1M | RM50,000 | 5% sales | Site selection + setup |
| Marrybrown | RM600K - RM900K | RM40,000 | 6% sales | Operations support |
| Texas Chicken | RM1.5M - RM2M | RM100,000 | 5% sales | Full operational system |
| PappaRich | RM900K - RM1.3M | RM70,000 | 5% sales | Central kitchen supply |
How to Finance Franchise:
Bank Franchise Financing:
Maybank Franchise Financing-i:
- Amount: Up to 80% of total investment
- Interest: 7-10% p.a.
- Tenure: 10-15 years
- Requirements: 20% equity contribution + business plan
SME Bank Franchise Financing:
- Amount: Up to RM2,000,000
- Interest: 5-7% p.a.
- Tenure: Up to 15 years
- Requirements: Franchisor must be registered with MFCEF (Malaysian Franchise Council Education Foundation)
MARA Skim Francais (Bumiputera Only):
- Amount: Up to RM500,000
- Interest: 4-6% p.a.
- Tenure: 10 years
- Requirements: Attend MARA franchise training
TEKUN Waralaba (Bumiputera Only):
- Amount: RM50,000 - RM500,000
- Interest: 4% p.a.
- Tenure: 5-10 years
- Requirements: Franchise must be Shariah-compliant or Muslim-friendly
How to Apply:
Step 1: Choose Franchise
- Research franchise opportunities
- Attend franchise exhibitions
- Contact franchisor directly
Step 2: Get Franchise Approval
- Submit franchise application to franchisor
- Pay application fee (RM500 - RM2,000)
- Attend interview/presentation
- If accepted, sign Letter of Intent
Step 3: Apply for Financing
- Bring franchise agreement to bank
- Submit franchise business plan (franchisor usually provides template)
- Include:
- Franchise disclosure document
- Projected P&L (provided by franchisor)
- Site survey report
- Your own capital contribution proof
Step 4: Bank Approval
- Bank evaluates franchise brand strength
- Checks franchisor track record
- Assesses your management capability
- Approval: 3-6 weeks
Step 5: Setup & Launch
- Bank disburses funds according to payment schedule
- Franchisor provides setup support
- Training provided
- Grand opening!
Renovation & Interior Loans {#renovation-loans}
11. Specific Renovation Financing
Best for: Upgrading existing restaurant, refurbishing old kopitiam
Loan Details:
CIMB Renovation Loan:
- Amount: RM10,000 - RM150,000
- Interest: 8-12% p.a.
- Tenure: 1-7 years
- No collateral for amounts below RM50K
Public Bank Business Renovation Financing:
- Amount: RM50,000 - RM500,000
- Interest: 6-10% p.a.
- Tenure: Up to 10 years
- For major renovations (structural, A&A works)
How to Use Renovation Loan:
Typical Renovation Scope:
✅ Flooring (tiles, wood flooring): RM10,000 - RM25,000
✅ Ceiling & lighting: RM8,000 - RM20,000
✅ Wall finishing & painting: RM5,000 - RM15,000
✅ Plumbing & sewerage: RM8,000 - RM15,000
✅ Electrical wiring upgrade: RM10,000 - RM20,000
✅ Air-conditioning installation: RM20,000 - RM50,000
✅ Kitchen wet works: RM15,000 - RM40,000
✅ Furniture (tables, chairs, counters): RM15,000 - RM50,000
✅ Signage & facade: RM5,000 - RM20,000
✅ Interior design & decor: RM10,000 - RM30,000
TOTAL: RM100,000 - RM300,000 (typical mid-range renovation)
Documents Required:
- Renovation quotation from contractor
- Floor plan & design drawings (if major A&A)
- DBKL/local council approval letter (for structural changes)
- Rental agreement (to prove you can renovate)
- Landlord consent letter (if rented premises)
Pro Tip: Many contractors have tie-ups with banks. Ask your contractor if they can arrange financing!
Working Capital for F&B {#working-capital}
12. Short-Term Working Capital Loans
Best for: Covering daily expenses during slow months
What is Working Capital Loan?
- Short-term loan (6-24 months) to cover:
- Slow months (e.g., Ramadan for non-halal restaurants, CNY for Malay restaurants)
- Unexpected repairs (kitchen equipment breakdown)
- Opportunity purchases (bulk ingredient discount)
- Marketing campaigns (GrabFood promotions, etc.)
Financing Options:
Funding Societies - Revenue-Based Financing:
- Amount: RM30,000 - RM500,000
- Interest: 12-20% p.a.
- Tenure: 3-12 months
- Approval: 2-3 days (VERY FAST!)
- Repayment: Weekly or monthly
- Website: https://fundingsocieties.com.my
BOOST Capital:
- Amount: RM20,000 - RM300,000
- Interest: 12-18% p.a.
- Tenure: 6-36 months
- Approval: 1-2 days
- Apply via Boost app
Merchantrade Asia:
- Amount: RM50,000 - RM1,000,000
- Interest: 10-15% p.a.
- Tenure: 1-5 years
- Approval: 5-7 days
When to Use Working Capital Loan:
Example Scenario 1: "Your restaurant normally does RM80,000 sales/month. During March (Ramadan), sales drop to RM40,000 because fewer non-Muslim customers. You need RM30,000 to cover salary and rent shortfall. Take 3-month working capital loan, repay after Ramadan rush."
Example Scenario 2: "Supplier offers 40% discount if you buy 6 months supply upfront. Normal cost RM60,000, with discount RM36,000. You don't have cash. Take RM36,000 working capital loan, save RM24,000 on purchases, repay loan over 12 months. Net savings after interest: RM15,000!"
Halal Certification Financing {#halal-financing}
13. Halal Certification Grants & Financing
What is Halal Certification?
- Certification from JAKIM (Jabatan Kemajuan Islam Malaysia)
- Proves restaurant complies with Islamic food standards
- CRITICAL for Muslim customer base
- Many malls and food courts require halal cert
Cost of Halal Certification:
JAKIM application fee: RM1,000 - RM2,000
Halal consultant fees: RM5,000 - RM15,000 (helps with application & audit)
Kitchen/equipment upgrades: RM10,000 - RM50,000 (segregate halal processes)
Training for staff: RM2,000 - RM5,000
Audit fees: RM1,000 - RM3,000
TOTAL: RM19,000 - RM75,000
Financing & Grants:
HDC (Halal Development Corporation) Grant:
- Grant (NOT loan!): Up to RM50,000
- 50% matching grant (if cost RM100,000, HDC gives RM50,000)
- For halal certification costs
- Apply: https://www.hdcglobal.com
SME Bank - Halal Transformation Programme:
- Loan: RM50,000 - RM500,000
- Interest: 4-6% p.a.
- For SMEs wanting to achieve halal status
Eligibility:
✅ Malaysian SME
✅ F&B business registered with SSM
✅ Committed to obtaining JAKIM halal certification
✅ Minimum 6 months operations
How to Apply:
- Engage halal consultant (they guide entire process)
- Apply HDC grant first (free money!)
- If grant insufficient, apply SME Bank loan
- Consultant helps with JAKIM application
- JAKIM audit (pass = get certificate!)
ROI of Halal Certification:
"Chinese restaurant in KL got halal cert, sales increased 60%! Muslim customers now visit. Also got contracts to supply to government offices. Halal cert cost RM40,000, recovered in 5 months!"
Required Documents for Restaurant Loan {#required-documents}
Complete Checklist
For Sole Proprietor / Enterprise:
✅ MyKad (IC) of owner
✅ SSM registration (Form D or E)
✅ Business bank statements (6-12 months)
✅ Personal bank statements (6 months)
✅ Business plan (see template below)
✅ Rental agreement (shop/premises)
✅ Landlord consent letter (for renovation loans)
✅ Licenses & permits:
- Business license (from local council)
- Food establishment license (from health department)
- Signboard license (if applicable)
- Liquor license (if selling alcohol)
- Halal certificate (if applicable)
- Fire safety certificate
✅ Income tax return (Form B/BE, last 2 years if available)
✅ Sales records (daily sales summary, POS reports)
✅ Existing commitments (list of current loans/debts)
✅ Quotations (for equipment/renovation financing)
✅ CCRIS report (download free from Bank Negara)
✅ CTOS report (buy for RM39.90 at ctosdigital.com)
For Sdn Bhd (Limited Company):
All of the above, PLUS:
✅ MyKad (IC) of all directors
✅ SSM company documents (Form 9, 24, 44, 49)
✅ Memorandum & Articles of Association (M&A)
✅ Company bank statements (12 months)
✅ Audited financial statements (last 2 years)
- Balance sheet
- Profit & loss statement
- Cash flow statement
✅ Management accounts (latest month if audited accounts > 6 months old)
✅ Company tax return (Form C, last 2 years)
✅ Board resolution authorizing loan application
✅ List of shareholders and shareholding percentage
✅ Directors' CCRIS and CTOS reports
✅ Collateral documents (if required):
- Property title (geran)
- Property valuation report
- Property fire insurance
- Quit rent & assessment receipts (up-to-date)
How to Improve Approval Chances {#improve-approval}
15 Strategies for Restaurant Owners
1. Operate for At Least 6-12 Months Before Applying
Why:
- Banks want to see proven track record
- Avoid "startup risk" perception
- Show consistent monthly sales
Strategy:
- Use personal savings or family money for initial setup
- Operate and build sales history for 6-12 months
- Then apply for expansion loan (MUCH easier to get approved!)
2. Show Growing Sales Trend
What Banks Love to See:
Month 1: RM25,000
Month 2: RM30,000
Month 3: RM35,000
Month 4: RM32,000 (slight dip okay)
Month 5: RM40,000
Month 6: RM45,000
= Upward trend ✅ Banks confident you'll repay!
How to Present:
- Export sales from POS system (GrabFood, FoodPanda, Boost, etc.)
- Show daily sales summary (written sales book also accepted)
- Bank deposits matching sales figures
3. Separate Business and Personal Finances
Must Do:
- Open business bank account (not personal account for business)
- All sales deposit to business account
- All business expenses pay from business account
- Pay yourself a fixed monthly salary (transfer from business to personal)
Why:
- Banks can clearly see business cash flow
- Professional impression
- Easier for accounting and tax filing
Recommended Business Accounts:
- Maybank Islamic Business Account-i
- CIMB Business Current Account
- Hong Leong Business Account
- Bank Rakyat Business Account-i
4. Keep Proper Bookkeeping Records
Minimum Records to Maintain:
✅ Daily sales summary (handwritten or POS report)
✅ Purchase invoices (all ingredients & supplies)
✅ Expense receipts (utilities, rent, salaries)
✅ Inventory records (monthly stock take)
✅ Petty cash book
✅ Bank reconciliation (monthly)
Hire Bookkeeper (Recommended):
- Cost: RM300 - RM800/month for small restaurant
- They handle all record-keeping
- Prepare monthly P&L statement
- File SST and income tax
- Banks LOVE neat, professional accounting!
5. File Income Tax Returns
Tax Filing for Restaurants:
If Sole Proprietor / Enterprise:
- File Form B (individual business income)
- Due date: June 30 every year
If Sdn Bhd:
- Must file Form C (company tax)
- Must have audited accounts if revenue > RM500K/year
Why Important for Loan:
- Proof of legitimate business operations
- Shows compliance with laws
- Banks check tax compliance via LHDN portal
- Major factor in credit evaluation!
6. Get All Necessary Licenses BEFORE Applying Loan
Essential Licenses:
✅ Business license (from DBKL/MPSJ/MBPJ - your local council)
✅ Food establishment license (from health dept)
✅ Premise license (from Fire Dept for safety compliance)
✅ Halal certificate (if serving Muslims)
✅ Signboard license
✅ Entertainment license (if have live music/TV)
Banks will check! No licenses = automatic rejection.
7. Maintain Strong Credit Score (CTOS & CCRIS)
Check Your Scores:
CTOS:
- Check at: https://www.ctosdigital.com
- Cost: RM39.90
- Target score: Above 700 (for good approval chances)
CCRIS (Free!):
- Check at: https://www.bnm.gov.my
- Register for online access
- Look for any defaults or late payments
How to Improve:
- Pay all existing loans on time
- Settle outstanding credit card debt
- Don't apply for too many loans at once
- Dispute any errors in report
8. Prepare Solid Business Plan
See detailed template in section below!
Key elements:
- Executive summary
- Market analysis (who are your customers?)
- Competition analysis
- Menu & pricing strategy
- Revenue projections (realistic!)
- Expense breakdown
- Loan usage plan
- Repayment ability
Pro Tip: Use actual operating data (if existing restaurant), not just projections!
9. Offer Collateral to Get Better Rates
Collateral Options:
| Type | Loan-to-Value | Interest Rate Reduction |
|---|---|---|
| Residential property | Up to 70% | Save 2-5% p.a. |
| Commercial property | Up to 60% | Save 2-4% p.a. |
| Fixed Deposit | Up to 90% | Save 3-6% p.a. |
| ASB/ASN units (Bumiputera) | Up to 70% | Save 2-4% p.a. |
Example:
RM300,000 loan for 5 years:
Without collateral:
- Interest: 12% p.a.
- Total interest paid: RM105,000
With property collateral:
- Interest: 6% p.a.
- Total interest paid: RM50,000
**Savings: RM55,000!** 💰
10. Get Personal Guarantee from Strong Guarantor
If you don't have property, use guarantor:
Good Guarantor Profiles:
- Parent or sibling working in government
- Spouse with professional job (doctor, engineer, accountant)
- Business partner with clean credit
- Anyone with high income (RM10,000+) and clean CCRIS
Guarantor Requirements:
- Clean CTOS/CCRIS (no bankruptcy)
- Stable income
- Willing to sign legal guarantee
- Understand they'll pay if you default
11. Start with Smaller Loan, Build Credit
Phased Borrowing Strategy:
Phase 1 (Year 1):
- Open small restaurant with personal savings
- Take RM50,000 working capital loan
- Repay perfectly for 12 months
Phase 2 (Year 2):
- Apply for RM150,000 expansion loan (2nd branch)
- Banks see good repayment track record
- Higher approval rate, better interest rate
Phase 3 (Year 3-4):
- Apply for RM500,000 major expansion (3-5 branches)
- Strong business credit built
- Banks compete for your business!
12. Partner with Suppliers (Trade Credit)
What is Trade Credit?
- Suppliers give you ingredients/supplies NOW
- You pay them 30-60 days later
- Free credit! (if no interest charged)
How to Negotiate:
✅ Build relationship with supplier for 3-6 months first
✅ Pay on time every delivery
✅ After trust built, ask for 30-day credit terms
✅ Gradually increase credit limit
Example: "Lim's Steamboat Restaurant in Puchong buys RM20,000 seafood monthly. Supplier now gives 45-day credit. That's RM30,000 working capital saved!"
13. Reduce Personal Debts Before Applying
Calculate Debt Service Ratio (DSR):
DSR = (Total Monthly Debt + Proposed Loan) ÷ Total Monthly Income × 100%
Banks want DSR below 70% (some banks 60%)
If DSR Too High, Do This:
- Settle small debts first (credit cards, personal loans)
- Extend existing loan tenures (reduce monthly payment)
- Increase business revenue before applying
14. Time Your Application Strategically
Best Times to Apply:
| Period | Why Good? |
|---|---|
| After Festival Season (CNY, Raya, Deepavali) | You have strong sales figures to show |
| Government Budget Announcement (October-November) | New SME schemes launched |
| Start of Year (January-March) | Banks have fresh lending targets |
Avoid:
- Year-end (November-December) - Banks rushing to close books
- Peak audit season (April-June) - Slow processing
15. Get Professional Loan Consultant Help
When to Use Consultant:
✅ Been rejected by 2+ banks ✅ Need large amount (RM500K+) ✅ Complex multi-entity structure ✅ Want to compare multiple lenders ✅ Don't have time to handle applications
MyPinjam Credit Services for F&B:
✅ Free consultation (no upfront fees)
✅ Access to 20+ lenders (banks, government schemes, fintech)
✅ Restaurant-specific expertise (we understand F&B challenges)
✅ Business plan drafting assistance
✅ Financial projection modeling
✅ Application management (we handle all paperwork)
✅ Negotiation (we get better rates for you)
✅ Mandarin, Malay, English support
✅ Success rate: 78% for F&B businesses
Contact:
- 📱 WhatsApp: +60 16-747 9368
- 📧 Email: hello@mypinjamcredit.com
- 💬 Say: "I need restaurant financing consultation"
Success Stories (Chinese, Malay, Indian Restaurants) {#success-stories}
Real Restaurant Owner Success Cases
Success Story 1: Wong's Dim Sum House (Chinese Restaurant)
Background:
- Mr. Wong, 52, from Klang
- Wanted to open traditional dim sum restaurant
- Needed RM400,000 for:
- Shophouse rental deposit: RM30,000
- Renovation (60 seats): RM150,000
- Kitchen equipment: RM80,000
- Initial stock & working capital: RM50,000
- Licenses & misc: RM20,000
Challenge:
- Rejected by 2 banks (CIMB, Public Bank)
- Reason: "F&B too risky, no collateral"
- Wong had clean credit but no property
Solution:
- Applied to SME Bank with guarantor (son working in civil service)
- Prepared detailed business plan showing:
- Daily sales projection: RM4,000 - RM6,000
- Benchmark against nearby successful dim sum shops
- Menu with cost analysis
- Marketing plan (GrabFood, Foodpanda, Facebook)
Outcome:
✅ SME Bank approved RM420,000 (more than requested!)
✅ Interest: 5.5% p.a. (very low!)
✅ Tenure: 10 years
✅ Monthly repayment: RM4,580
Restaurant Performance (After 18 months):
✅ Daily sales average: RM5,500
✅ Monthly profit: RM38,000
✅ Loan repayment only RM4,580 (easily affordable!)
✅ Now planning 2nd branch!
Wong's Advice (in Mandarin): "传统银行reject不要紧。政府银行SME Bank利息低很多！我的儿子做guarantor就批准了。点心生意只要位置好、味道正,一定赚钱!"
(Translation: "Don't worry if traditional banks reject. Government bank SME Bank has much lower interest! My son became guarantor and got approved. Dim sum business as long as good location, authentic taste, will make money!")
Success Story 2: Warung Pak Ali (Malay Nasi Kandar)
Background:
- Pak Ali, 38, from Kedah
- Operating small nasi kandar stall for 3 years
- Daily sales: RM1,200 - RM1,800
- Wanted to upgrade to proper restaurant
- Needed RM120,000
Challenge:
- No business registration (operating as roadside stall)
- No bookkeeping records
- Cash business (no bank deposits)
Solution:
- Contacted MyPinjam Credit for guidance
- We helped him:
- Register with SSM (RM60 for Enterprise)
- Open business bank account
- Deposit cash sales daily for 3 months (build bank record)
- Apply for proper licenses (health permit, DBKL license)
- Get halal certification (with HDC grant)
- Apply TEKUN Madani (RM50,000) + Bank Rakyat (RM70,000)
Outcome:
✅ TEKUN approved RM50,000 (4% interest!)
✅ Bank Rakyat approved RM80,000 (9% interest)
✅ Total funding: RM130,000
Used for:
✅ Rented proper shop (RM3,000/month)
✅ Renovation & air-con: RM60,000
✅ Kitchen equipment: RM40,000
✅ Working capital: RM30,000
Results After 1 Year:
✅ Daily sales increased to RM4,500!
✅ Monthly profit: RM25,000
✅ Hired 8 staff (creating jobs!)
✅ Repaying loans comfortably
Pak Ali's Testimonial: "Terima kasih MyPinjam Credit! Saya tak tahu kena register SSM dan ambil lesen. Mereka guide step by step. Sekarang kedai saya ada air-cond, ramai pelanggan datang. Alhamdulillah!"
(Translation: "Thank you MyPinjam Credit! I didn't know need to register SSM and get licenses. They guided step by step. Now my restaurant has air-con, many customers come. Alhamdulillah!")
Success Story 3: Kumar's Banana Leaf Restaurant (Indian Restaurant)
Background:
- Kumar, 45, from Brickfields KL
- Operating small banana leaf rice shop for 5 years
- Monthly sales: RM45,000
- Wanted to expand to 2nd location
- Needed RM350,000
Challenge:
- First location profitable but lease expiring soon
- Landlord not renewing (building sold)
- Need to relocate + open 2nd branch simultaneously
- Time pressure (only 4 months to move)
Solution:
- Applied to RHB Bank using:
- 5 years proven sales record
- Clean CTOS (score 760)
- Wife's ASB units as collateral (RM100K value)
- Also applied CGC BizMula guarantee to reduce interest
Outcome:
✅ RHB approved RM380,000 with CGC guarantee
✅ Interest: 6.8% p.a. (reduced from original 9% due to CGC!)
✅ Tenure: 8 years
✅ Fast approval: 3 weeks only
Used for:
✅ New location 1 (relocate existing): RM180,000
✅ New location 2 (expansion): RM200,000
Results After 2 Years:
✅ Location 1 sales: RM50,000/month
✅ Location 2 sales: RM60,000/month
✅ Combined profit: RM45,000/month
✅ Loan repayment: RM5,600/month (easy!)
✅ Now owns food catering business too!
Kumar's Quote: "RHB Bank understood my urgency. CGC guarantee helped me get lower interest. My wife's ASB collateral sealed the deal. Both restaurants doing well, Tamil community supports us!"
Common Mistakes to Avoid {#common-mistakes}
Top 10 Mistakes F&B Owners Make When Applying for Loans
Mistake #1: Applying Without Proper Business Registration
❌ Wrong: "I operate food stall, no need SSM registration."
✅ Right: Register with SSM BEFORE applying for loan. Cost only RM30-RM60, mandatory for business loans.
Mistake #2: Mixing Personal and Business Finances
❌ Wrong: Use personal bank account for business sales, mix grocery shopping with business purchases.
✅ Right: Separate business bank account. Clean records = easier loan approval.
Mistake #3: Over-Estimating Sales Projections
❌ Wrong:
Business plan claims:
- Daily sales: RM10,000
- Monthly sales: RM300,000
- Profit margin: 50%
(Banks know typical F&B is RM50K-RM150K monthly, 20-30% margin. They'll reject unrealistic projections!)
✅ Right: Use realistic, conservative numbers based on industry benchmarks.
Mistake #4: Under-Estimating Startup Costs
❌ Wrong:
"I need RM100,000 to open restaurant."
Reality Check:
- Deposit: RM15K
- Renovation: RM80K
- Equipment: RM60K
- Initial stock: RM15K
- Licenses: RM8K
- Working capital: RM40K
- ACTUAL NEED: RM218,000!
Applied RM100K, not enough, business struggled.
✅ Right: Calculate ALL costs including working capital buffer. Better to borrow more than needed than run out of cash!
Mistake #5: Ignoring Existing Debt Service Ratio
❌ Wrong: Already have car loan + credit card debt totaling RM3,000/month. Apply for restaurant loan with RM4,000/month payment. Total RM7,000/month debt but income only RM8,000. Bank rejects (DSR too high).
✅ Right: Clear high-interest debts first, or factor existing commitments into affordability.
Mistake #6: Not Having Licenses Before Applying
❌ Wrong: "I'll get licenses after loan approved."
Bank: "No licenses = loan rejected."
✅ Right: Get at least business license and food license FIRST. Banks check compliance.
Mistake #7: Applying to Too Many Banks at Once
❌ Wrong: Apply to 8 banks simultaneously. Each inquiry shows on CCRIS. Credit score drops. Banks see desperate pattern. All reject.
✅ Right: Apply to maximum 2-3 lenders. If rejected, seek professional help to understand why and fix issues before next application.
Mistake #8: Hiding Negative Information
❌ Wrong: Have previous bankruptcy but don't declare. Bank finds out during credit check. Automatic rejection + blacklisted.
✅ Right: Be transparent. If have issues, explain and show how you've resolved them. Banks appreciate honesty.
Mistake #9: Not Having Clear Loan Purpose
❌ Wrong:
Bank: "What will you use this RM200K for?"
You: "Umm... business expenses lah..."
Bank: "Can you be more specific?"
You: "Just... general use..."
Result: REJECTED (Banks think you'll misuse funds)
✅ Right:
"RM200,000 breakdown:
- Kitchen equipment: RM80,000 (attach quotations)
- Renovation: RM70,000 (contractor quote attached)
- Initial stock: RM20,000
- Working capital: RM30,000
Expected ROI: Sales RM120K/month, profit RM30K/month, can repay RM5K/month comfortably."
Result: Banks see you're serious, detailed, know what you're doing. APPROVED.
Mistake #10: Choosing Loan Based on Amount Only (Not Total Cost)
❌ Wrong:
Lender A: RM150,000 @ 8% p.a. for 5 years = RM33,000 interest
Lender B: RM180,000 @ 15% p.a. for 5 years = RM75,000 interest
Choose B because "got more money!"
But pay RM42,000 MORE in interest! 😱
✅ Right: Compare TOTAL COST (principal + interest). Sometimes smaller amount with lower rate is smarter.
F&B Business Plan Template {#business-plan}
Simple Yet Effective Template for Banks
[Your Restaurant Name] Business Plan
1. EXECUTIVE SUMMARY (1 page)
Business Name: [e.g., Wong's Dim Sum House]
Business Type: [Chinese Dim Sum Restaurant]
Location: [Klang, Selangor]
Owner: [Mr. Wong Ah Kow, IC: 720505-10-5678]
Loan Request: RM400,000
Purpose: Opening new dim sum restaurant
Tenure Requested: 10 years
Business Concept:
Traditional Cantonese dim sum restaurant serving authentic handmade dim sum for breakfast and lunch. Target market: Chinese families, working professionals, tourists in Klang area.
Why We Will Succeed:
- Chef has 25 years experience (worked at famous restaurant in Hong Kong)
- Prime location (opposite market, high foot traffic)
- Unique selling point: Handmade dim sum (no frozen products)
- Affordable pricing (dim sum from RM4-RM8 per basket)
- Strong online marketing (GrabFood, Foodpanda, social media)
Financial Highlights:
- Projected daily sales: RM4,500 - RM6,000
- Monthly revenue: RM120,000 - RM150,000
- Estimated profit margin: 28%
- Monthly profit: RM33,000 - RM42,000
- Loan repayment: RM4,580/month (affordable!)
2. BUSINESS DESCRIPTION (1-2 pages)
2.1 Industry Overview
- F&B industry in Malaysia growing at 5-7% annually
- Dim sum segment popular, especially in Klang Valley
- Demand for quality, affordable breakfast options
2.2 Our Restaurant
- Cuisine: Traditional Cantonese dim sum
- Operating Hours: 7:00 AM - 3:00 PM (breakfast & lunch)
- Seating Capacity: 60 pax
- Service Style: Dine-in, takeaway, delivery
2.3 Menu Highlights
- 40+ varieties of dim sum (handmade daily)
- Signature dishes: Har Gau, Siew Mai, Char Siew Bao
- Beverages: Hong Kong milk tea, coffee, fresh juices
- Average spending per customer: RM15-RM25
2.4 Location Advantages
- High density residential area (30,000 population within 3km)
- Opposite wet market (morning traffic 2,000+ people)
- Ample parking (50 bays)
- Near schools and offices
- No direct competitor within 1km radius
3. MARKET ANALYSIS (1 page)
3.1 Target Customers
Primary Segment (60%):
- Chinese families (weekend breakfast tradition)
- Age: 30-65
- Income: RM3,000 - RM10,000
- Willing to spend RM60-RM150 per family visit
Secondary Segment (30%):
- Working professionals (weekday breakfast)
- Age: 25-45
- Quick breakfast before work
- Spending: RM10-RM25 per person
Tertiary Segment (10%):
- Tourists & visitors to Klang
- Looking for authentic local food
3.2 Competition Analysis
Nearby Competitors:
1. Restaurant A (0.8km away)
- Strengths: Established (10 years)
- Weaknesses: Frozen dim sum, poor service
2. Restaurant B (1.2km away)
- Strengths: Big space, parking
- Weaknesses: Expensive (RM12-RM15 per basket)
Our Competitive Advantages:
✅ Handmade fresh dim sum (better quality than A)
✅ Affordable pricing (cheaper than B)
✅ Better location (higher foot traffic)
✅ Modern marketing (online delivery, social media)
3.3 Market Size & Growth
- Klang population: 240,000 (2024)
- Chinese population: ~30% = 72,000
- Estimated market: 15,000 families
- If we capture 5% = 750 regular customers = SUCCESS!
4. OPERATIONS PLAN (1 page)
4.1 Daily Operations
5:00 AM: Chef & team start preparing dim sum
7:00 AM: Restaurant opens (morning peak)
7:00 AM - 11:00 AM: Breakfast rush (60% of daily sales)
11:00 AM - 3:00 PM: Lunch service (40% of sales)
3:00 PM: Close for service
3:00 PM - 5:00 PM: Cleaning, prep for next day
4.2 Staffing
Position | Number | Salary (RM)
---------|--------|-------------
Head Chef | 1 | 4,500
Dim Sum Chef | 2 | 3,000 each
Kitchen Helper | 2 | 1,800 each
Service Staff | 4 | 1,900 each
Cashier | 1 | 2,200
TOTAL STAFF: 10 | MONTHLY: RM24,200
4.3 Suppliers
- Fresh ingredients: Daily supply from local market
- Specialty items: Suppliers in Kepong, Cheras
- Payment terms: 30-day credit (after 3 months relationship)
4.4 Technology
- POS system: [Brand] - RM6,000
- Online ordering: GrabFood, Foodpanda (30% commission)
- Payment: Cash, e-wallet, credit card
5. FINANCIAL PROJECTIONS (2-3 pages)
5.1 Startup Costs
ITEM | AMOUNT (RM)
-----|------------
Rental Deposit (3 months @ RM10K) | 30,000
Renovation & Interior | 150,000
- Flooring, ceiling, walls | 50,000
- Air-conditioning (5 units) | 30,000
- Kitchen wet works | 40,000
- Furniture (tables, chairs) | 30,000
Kitchen Equipment | 80,000
- Commercial stoves | 15,000
- Steamers (dim sum) | 20,000
- Refrigerators & freezers | 18,000
- Prep tables & shelves | 12,000
- Small equipment & utensils | 15,000
Licenses & Permits | 8,000
- Business license | 500
- Food license | 1,000
- Signboard license | 500
- Fire safety cert | 2,000
- SSM registration | 300
- Halal cert process | 3,700
Initial Inventory | 15,000
Marketing & Signage | 12,000
- Shop signage | 6,000
- Grand opening promotion | 6,000
POS System & IT | 6,000
Working Capital (3 months) | 90,000
- Salaries | 72,600
- Rent | 30,000
- Utilities | 12,000
- Contingency | 15,400
Miscellaneous | 9,000
-----|------------
TOTAL STARTUP COST | 400,000
Funding Sources:
- Own savings: RM50,000
- Loan request: RM350,000 (we'll contribute 12.5%)
5.2 Monthly Revenue Projection (Conservative Estimate)
WEEKDAY (Monday - Friday):
- Average customers: 150 pax/day
- Average spending: RM20/pax
- Daily sales: RM3,000
- Monthly (22 days): RM66,000
WEEKEND (Saturday - Sunday):
- Average customers: 250 pax/day
- Average spending: RM25/pax
- Daily sales: RM6,250
- Monthly (8 days): RM50,000
DELIVERY (GrabFood, Foodpanda):
- Average: RM600/day
- Monthly: RM18,000
TOTAL MONTHLY REVENUE: RM134,000
(This is CONSERVATIVE. Benchmark dim sum restaurants do RM150K-RM200K/month)
5.3 Monthly Expenses Projection
EXPENSE | AMOUNT (RM) | % of Sales
--------|-------------|------------
Cost of Goods Sold (COGS) | 60,300 | 45%
- Fresh ingredients | 45,000
- Dry goods & supplies | 10,000
- Beverages | 5,300
Rent | 10,000 | 7.5%
Salaries & EPF | 26,400 | 19.7%
Utilities | 4,500 | 3.4%
- Electricity | 2,500
- Water | 800
- Gas | 1,200
Marketing & Delivery | 6,700 | 5.0%
- Platform commissions | 5,400
- Advertising | 1,300
Maintenance & Repairs | 1,500 | 1.1%
Licenses renewal & misc | 800 | 0.6%
TOTAL EXPENSES | 110,200 | 82.2%
NET PROFIT: RM23,800 (17.8% margin)
Note: First 6 months may have lower profit due to building customer base. We project breakeven by month 4.
5.4 Loan Repayment Ability
Loan Amount: RM350,000
Interest Rate: 6% p.a. (assuming SME Bank)
Tenure: 10 years (120 months)
Monthly Payment: RM3,885
Debt Service Coverage Ratio:
Monthly Net Profit: RM23,800
Loan Payment: RM3,885
DSCR: 23,800 ÷ 3,885 = 6.13x
(DSCR > 1.25 is good. Ours is 6.13x = VERY SAFE!)
Even if sales drop 50%, we can still repay loan comfortably.
5.5 3-Year Projection
| Year 1 | Year 2 | Year 3
-|--------|--------|--------
Revenue | 1,608,000 | 1,850,000 | 2,100,000
Expenses | 1,322,400 | 1,480,000 | 1,680,000
Net Profit | 285,600 | 370,000 | 420,000
Profit Margin | 17.8% | 20.0% | 20.0%
Assumptions:
- Year 1: Building customer base (conservative)
- Year 2: 15% growth (established reputation)
- Year 3: 14% growth + margin improvement (economies of scale)
6. MARKETING STRATEGY (1 page)
6.1 Pre-Opening (Month -2 to Month 0)
- Facebook page & Instagram account setup
- Post kitchen setup progress (build anticipation)
- Grand opening promotion planning
- Flyer distribution (5,000 flyers in neighborhood)
6.2 Grand Opening (Week 1-2)
- 20% discount for all customers
- Free dim sum basket for dine-in RM50 and above
- Lucky draw (prizes: free meals, vouchers)
- Invite local Chinese association leaders
- Press release to local Chinese newspapers
6.3 Ongoing Marketing
- GrabFood & Foodpanda listing (reach delivery customers)
- Facebook Ads targeting 5km radius (RM300/month)
- Loyalty card (10 stamps = 1 free dim sum basket)
- Monthly promotions (Birthday month free dessert, Ladies Day discount, etc.)
- Google My Business listing (SEO for "dim sum near me" searches)
- Engage food bloggers for reviews
6.4 Customer Retention
- Collect customer data (phone numbers)
- WhatsApp broadcast for special promotions
- Festival specials (CNY, Mooncake Festival, etc.)
- Regular menu innovation (new dim sum varieties)
7. MANAGEMENT TEAM (1 page)
7.1 Owner/Proprietor
Name: Wong Ah Kow
IC: 720505-10-5678
Experience:
- 15 years in F&B industry
- Managed family restaurant in Hong Kong (2005-2015)
- Food safety certified (HACCP)
- Business management diploma
Responsibilities:
- Overall business strategy
- Financial management
- Marketing & customer relations
- Supplier negotiations
7.2 Head Chef
Name: Lau Siew Hong
Experience:
- 25 years dim sum specialist
- Worked at [Famous HK Restaurant]
- Won dim sum competition 2018
- Expert in handmade dim sum
7.3 Advisors
Accountant: [Name], [Firm] - handles bookkeeping & tax
Consultant: MyPinjam Credit - business loan services
8. RISK ANALYSIS & MITIGATION (1 page)
Risk 1: Slow Initial Sales
Mitigation:
- Conservative projections (planned for slow start)
- 3 months working capital buffer
- Aggressive marketing during launch
- Flexible to adjust menu/pricing based on feedback
Risk 2: Staff Turnover
Mitigation:
- Competitive salary (above market rate)
- Staff training program
- Good working environment
- Performance bonus scheme
Risk 3: Competition
Mitigation:
- Superior quality (handmade vs frozen)
- Better location
- Excellent service training
- Continuous menu innovation
Risk 4: Food Safety Issues
Mitigation:
- HACCP-certified kitchen
- Daily health checks for staff
- Strict hygiene SOPs
- Regular health dept inspections
Risk 5: Economic Downturn
Mitigation:
- Affordable pricing (resilient to recession)
- Dim sum is daily necessity, not luxury
- Can introduce budget menu if needed
9. EXIT STRATEGY (Optional - but banks like to see this!)
If Business Doesn't Work:
- Sell business as going concern (estimated RM200K-RM300K)
- Liquidate equipment (estimated RM50K)
- Use to pay off loan partially
- Owner has property worth RM600K (can sell if needed)
If Business Succeeds:
- Expand to 2nd branch (Year 3)
- Potential franchise model (Year 5)
- Eventual exit via business sale (10-15x monthly profit = RM3-5M valuation)
10. APPENDICES (Attach supporting documents)
✅ Appendix A: Owner's resume/CV
✅ Appendix B: Rental agreement (LOI or signed tenancy)
✅ Appendix C: Renovation quotations (from contractors)
✅ Appendix D: Equipment quotations (from suppliers)
✅ Appendix E: Licenses (existing) or application proof
✅ Appendix F: Location map and photos
✅ Appendix G: Sample menu with pricing
✅ Appendix H: Owner's IC copy
✅ Appendix I: SSM registration certificate
✅ Appendix J: CCRIS & CTOS reports
✅ Appendix K: Bank statements (6 months)
END OF BUSINESS PLAN
Total: 10-15 pages (professional, comprehensive, convincing!)
FAQ {#faq}
Q1: What's the minimum operating history needed to get restaurant loan?
A:
- Government schemes (TEKUN, MARA): Can apply even if NEW (0 months)
- Bank Rakyat, Islamic banks: Minimum 6 months
- Commercial banks (Maybank, CIMB, RHB): Minimum 1-2 years
- SME Bank: Minimum 1 year (prefer 2+ years)
If you're new: Start with personal savings, operate 6-12 months, then apply for expansion loan.
Q2: Can I get loan if my restaurant is home-based (no shopfront)?
A: It's VERY difficult because:
- Banks want proper business address
- Home-based seen as hobby, not serious business
- Licensing issues (residential areas have restrictions)
Exceptions:
- Online food business (cookies, cakes with delivery only) - can use fintech lenders like Funding Societies
- Home-based catering (if have proper licenses) - try TEKUN or AIM
Recommendation: If serious about restaurant business, rent proper commercial premises.
Q3: Do I need halal certification to get loan?
A: Not mandatory for loan approval BUT:
Advantages of having halal cert:
- Larger customer base (Muslim + non-Muslim)
- Some banks give priority/better rates (especially Islamic banks)
- Can participate in government programs (TEKUN, MARA require halal)
- Can supply to government offices, Islamic institutions
If not halal certified:
- Still can get commercial bank loans
- Clearly state in business plan your target market (non-Muslim or multi-cultural)
Q4: How long does restaurant loan approval take?
A:
| Lender Type | Typical Approval Time |
|---|---|
| TEKUN | 2-4 weeks |
| MARA | 4-8 weeks |
| SME Bank | 3-6 weeks |
| Bank Rakyat | 1-2 weeks |
| Maybank, CIMB, RHB | 2-4 weeks |
| Fintech (Funding Societies) | 2-5 days |
Tips to speed up:
- Submit COMPLETE documents (don't miss anything)
- Respond quickly to bank queries
- Have accountant on standby to explain financials
- Use loan consultant to chase bank (we know the process!)
Q5: Can I get loan for food truck or stall (not full restaurant)?
A: YES!
Food Truck Financing:
- TEKUN Mikro/Madani: RM10,000 - RM50,000
- Bank equipment financing: RM50,000 - RM150,000 (finance the truck itself)
- Hire purchase: Buy truck with HP (easier than business loan)
Food Stall:
- TEKUN: RM5,000 - RM30,000
- AIM (if can form group): RM1,000 - RM20,000
- Microcredit lenders: RM10,000 - RM50,000
Q6: What if I want to buy existing restaurant (not start new)?
A: Takeover/Acquisition Financing:
What you need:
- Business valuation (how much is existing restaurant worth?)
- Sales & purchase agreement
- Existing restaurant's financial records (last 2-3 years)
- Reason for seller selling (retirement, relocation, etc.)
Financing Options:
- SME Bank: Up to 70% of purchase price
- Commercial banks: 50-60% of purchase price
- You need 30-50% downpayment from own funds
Due Diligence (VERY IMPORTANT!):
✅ Check actual sales (not just what seller claims)
✅ Review expenses (any hidden costs?)
✅ Verify licenses (transferable?)
✅ Check lease (how many years left? Can renew?)
✅ Staff situation (will they stay or leave?)
✅ Equipment condition (need replacement soon?)
✅ Debt/liabilities (seller must clear before transfer)
Recommendation: Hire business valuer (cost RM2,000-RM5,000). Worth it to avoid overpaying!
Q7: Can I use restaurant loan to renovate residential property for restaurant use?
A: Generally NO, because:
- Residential property has zoning restrictions
- Need change of use approval (VERY hard to get!)
- Banks won't finance illegal/non-compliant ventures
Exception:
- Some ground floor residential in mixed-use buildings can apply for commercial license
- Must get local council approval FIRST
- Then banks may consider
Recommendation: Rent proper commercial premises, don't risk legal issues.
Q8: What if I default on restaurant loan?
A: Consequences:
Short-term (1-3 months default):
- Bank calls and sends letters
- Late payment charges added
- CCRIS record updated (shows arrears)
Medium-term (3-6 months):
- Account classified as NPL (non-performing loan)
- Bank may appoint debt collector
- Credit score drops significantly
- Difficult to get future loans
Long-term (6+ months):
- Bank takes legal action
- If have collateral: Bank sells your property/assets
- If have guarantor: Guarantor must pay
- May lead to bankruptcy
- Business closure
What to Do If Can't Repay:
- Contact bank IMMEDIATELY (don't hide!)
- Request for restructuring:
- Extend tenure (reduce monthly payment)
- Payment moratorium (3-6 months grace period)
- Reduce interest rate
- Show willingness to resolve (propose payment plan)
- Seek professional help (credit counselor, MyPinjam Credit can mediate with bank)
Take Action Now!
Your Restaurant Financing Roadmap
PHASE 1: Preparation (Week 1-4)
□ Register business with SSM
□ Open business bank account
□ Check CTOS & CCRIS scores
□ Gather all required documents
□ Calculate exact funding needed
□ Prepare business plan (use template above!)
□ Get quotations from suppliers/contractors
PHASE 2: Application (Week 5-6)
□ Choose right lender for your situation
□ Submit complete application
□ Follow up regularly (call every 3 days)
□ Respond quickly to any queries
□ Attend interview/site visit (if required)
PHASE 3: Approval & Setup (Week 7-12)
□ Review loan agreement carefully
□ Sign agreement
□ Funds disbursed
□ Start renovation/setup
□ Get licenses
□ Hire & train staff
□ Grand opening!
Contact MyPinjam Credit for Expert Assistance
Why Choose Us for F&B Financing?
✅ Specialized F&B Expertise
- 10+ years helping restaurant owners get funding
- Understand unique F&B challenges
- Know which lenders approve F&B businesses
✅ Access to 20+ Funding Sources
- Government schemes (TEKUN, MARA, SME Bank, CGC)
- Commercial banks (all major banks)
- Islamic banks (Shariah-compliant options)
- Equipment financing companies
- Working capital lenders
✅ End-to-End Support
- Free consultation (30-min call)
- Financing assessment
- Business plan drafting assistance
- Financial projection modeling
- Document preparation
- Application to multiple lenders simultaneously
- Follow-up and negotiation on your behalf
- Ongoing support until disbursement
✅ Proven Track Record
Success Rate for F&B Businesses: 78%
Average Loan Amount Secured: RM180,000
Average Time to Approval: 18 days
Client Satisfaction: 4.9/5 stars
Restaurants Helped (2023-2024):
- 45 Chinese restaurants (dim sum, seafood, noodles, etc.)
- 32 Malay restaurants (nasi kandar, warung, catering)
- 18 Indian restaurants (banana leaf, mamak, curry house)
- 22 Cafes & kopitiams
- 15 Franchises (Secret Recipe, OldTown, etc.)
- 28 Food stalls & trucks
✅ No Upfront Fees
- Free initial consultation
- Only pay success fee if loan approved
- Typical fee: 1-3% of approved amount
- Example: RM200K loan = RM2,000 - RM6,000 fee
- Worth every cent when we save you 2-4% interest! (RM40K-RM80K savings over loan tenure)
Contact Us:
📱 WhatsApp: +60 16-747 9368 📧 Email: hello@mypinjamcredit.com 🌐 Website: www.mypinjamcredit.com
Say: "I need restaurant financing consultation - [Chinese/Malay/Indian] restaurant"
Languages:
- 华语 Mandarin
- Bahasa Malaysia
- English
- Tamil (upon request)
Operating Hours:
- Monday - Friday: 9:00 AM - 6:00 PM
- Saturday: 9:00 AM - 2:00 PM
- Sunday: Closed (WhatsApp messages responded within 24 hours)
Office Location: Mont Kiara, Kuala Lumpur (By appointment only)
Conclusion
Opening or expanding a restaurant in Malaysia is challenging, but financing is AVAILABLE!
Whether you're starting a small mamak stall with RM20,000 or opening a full-fledged restaurant with RM500,000, there are suitable financing options for you:
For Small Businesses (RM10K-RM100K):
- TEKUN (Bumiputera) - 4% interest!
- MARA (Bumiputera) - 4-6% interest
- Bank Rakyat - accessible, fast approval
- Microcredit lenders - flexible requirements
For Medium Restaurants (RM100K-RM500K):
- SME Bank - lowest rates (4-6% p.a.)
- CGC BizMula - guaranteed schemes
- Commercial banks - competitive rates
- Equipment financing - preserve working capital
For Large Ventures (RM500K+):
- SME Bank - up to RM10M
- Franchise financing - specialized programs
- Commercial banks with collateral - best rates
Key Success Factors:
- ✅ Proper documentation (SSM, licenses, tax filings)
- ✅ Realistic business plan (use our template!)
- ✅ Clean credit record (pay debts on time)
- ✅ Proven track record (operate 6-12 months before expansion loan)
- ✅ Professional presentation (neat records, clear projections)
- ✅ Right financing match (choose lender that suits your profile)
- ✅ Expert assistance (use MyPinjam Credit to save time & get better rates!)
Don't let financing stop your F&B dream. Take action today!
祝生意兴隆，财源广进！Semoga perniagaan anda terus maju! May your restaurant prosper! 🍜🍛🥘
Next Steps:
- [Download F&B Business Plan Template](PDF link)
- Check Your CTOS Score
- Free Consultation with MyPinjam Credit
- Register Business with SSM
Disclaimer: This guide is for educational purposes. Loan approval depends on individual circumstances, lender criteria, and prevailing terms. Interest rates and requirements subject to change. Always read loan agreements carefully before signing. Borrow responsibly. F&B business carries inherent risks - proper planning and management are essential for success.
Last Updated: January 12, 2025
About the Author: Howard Tan is founder of MyPinjam Credit, a loan consultancy specializing in SME and F&B financing. With 12+ years of experience, he has helped 400+ Malaysian restaurant owners secure over RM85 million in financing.