Even though the vast majority of these firms are found in the unorganized sector of the economy, micro, small, and micro-sized enterprises (MSMEs) make a considerable contribution to Malaysia’s gross domestic product.

As you presumably already know, controlling cash flow is one of the hardest issues a startup encounters in its early stages. To meet high overhead costs and maintain efficient corporate operations, these new companies need enough operating capital.

All businesses need financing, either as an investment or a source of working capital. Working capital is used to finance inventory, buy raw materials for production, and bridge the gap until receivables from consumers are paid. Because of this, initiatives worldwide to close the funding gap for small and micro-sized enterprises must prioritize access to appropriate financing solutions.

The term “recession” can hold different meanings to different industry experts or business professionals. Some believe that during a season of recession, businesses will experience a complete loss and operations will shut down permanently.

There are about 40% GDP contributions from SMEs in Malaysia. Despite this success, many SMEs in Malaysia are having trouble with their cash flow and are now researching invoice finance as a different sort of loan facility. 

Infrastructure improvements, operational competition initiatives, economic turbulence, longer timeframes for payments. A supplier may need to be paid in advance for the goods or services it provides for a myriad of reasons, but they all contribute to the same overriding goal: improved cash flow. In reality, this necessity has heightened concerns due to the dangers and chokepoints in today's global supply chains.