Top 6 Banks for Franchise Loans (2025)

Franchising presents a compelling pathway to entrepreneurship, offering a proven business model and established brand recognition. However, securing the necessary financing is a critical step in turning your franchise dreams into reality. In Malaysia, a range of banks and financial institutions provide franchise loans tailored to meet the unique needs of aspiring franchisees. This article delves into the best banks for franchise loans in Malaysia, outlining the types of loans available, essential requirements, and a comprehensive list of reputable lenders.

Types of Franchise Business Loans

Understanding the various types of franchise business loans is crucial for selecting the right financing option. Here are some common types:

• Term Loans: These loans provide a lump sum of capital that is repaid over a fixed period with regular installments. They are ideal for covering startup costs, equipment purchases, and initial working capital.
• Working Capital Loans: These loans are designed to cover day-to-day operational expenses, such as inventory, payroll, and marketing. They ensure smooth cash flow and support ongoing business activities.
• Equipment Financing: This type of loan is specifically for purchasing or leasing equipment required for the franchise. The equipment itself often serves as collateral.
• SME Loans: Small and Medium Enterprise loans are a broad category that can encompass many types of financing that are designed to help small businesses. Many banks offer these with terms that are beneficial to starting a franchise.

Franchise Loan Basic Requirements

While specific requirements may vary between lenders, here are some common criteria for securing a franchise loan in Malaysia:

• Business Plan: A comprehensive business plan outlining the franchise concept, market analysis, financial projections, and management team.
• Franchise Agreement: A valid franchise agreement with the franchisor, demonstrating the legitimacy of the business.
• Financial Statements: Personal and business financial statements, including income statements, balance sheets, and cash flow projections.
• Credit History: A good credit score and history, demonstrating responsible financial management.
• Collateral: Some lenders may require collateral, such as property or equipment, to secure the loan.
• Business Registration: Registration with the Companies Commission of Malaysia (SSM).
• Franchisor approval: some banks require the parent company to approve of the loan.

Banks That Offer Business Loans in Malaysia

Here’s a list of reputable banks in Malaysia that offer business loans, including those suitable for franchise financing:

Maybank

• Offers SME loans for working capital, asset acquisition, and project financing.
• Franchise Financing Scheme (FFS):
  • This is a jointly participated scheme with the Kementerian Perdagangan Dalam Negeri Koperasi Dan Kepenggunaan (KPDNKK) and the Credit Guarantee Corporation (CGC).
  • It is suitable for franchisees with viable franchise businesses but who may lack sufficient collateral.
  • It targets financing for working capital and/or asset acquisition.
  • Financing amounts can reach up to RM5 million.
  • Official Website: www.maybank2u.com.my

CIMB

• Offers SME financing solutions, including term loans and working capital loans.
• Franchise Financing Scheme (FFS):
• CIMB offers a Franchise Financing Scheme with guarantee fee structures as follows:

• Official Website: www.cimb.com.my

Public Bank

• Offers business loans with competitive interest rates.
• Official Website: www.pbebank.com

Bank Rakyat

• Offers loans to help micro and small enterprises grow their businesses.
• Official Website: www.bankrakyat.com.my

TEKUN Nasional

• Offers microfinancing to help small businesses.
• Official Website: www.tekun.gov.my

OCBC

• Offers a small business loan for startups and emerging businesses.
• Official Website: www.ocbc.com.my

Securing a franchise loan is a crucial step in launching a successful franchise business in Malaysia. By understanding the types of loans available, meeting the essential requirements, and exploring the offerings of reputable banks, aspiring franchisees can increase their chances of obtaining the necessary financing. It is highly recommended that you contact each bank directly, to discuss your individual needs, and to find the best possible loan for your new franchise. Good luck on your entrepreneurial journey!

About Franchise-Info

Explore, Compare, & Invest Franchise Opportunities in Malaysia