If you are a business owner in the following activities, then you will be eligible to apply:-
1. Visual Arts (e.g. Paintings & Sculptures)
2. Performing Arts (e.g. Theater & Dancing)
3. Music (e.g. Recording Studios & Music Academy)
4. Literature (e.g. Book Publisher)
5. Content Creation (e.g. Cinematic and TV Content)
6. Fashion and Design (e.g. Couture & Fashion Academy)
7. Traditional and Cultural Arts (e.g. Songket & Crafts)
Meaning to say, if funding is made in the form of equity, MyCreative will formulate a dividend plan for the applicant company. For loans, interests will be determined based on the risk profile of the applicant's business. In both cases, MyCreative will also take into account the gestation period for the applicant's business to turnaround in order to determine the capital investment and principal loan amount repayment timing.
You may be wondering, what if the nature of business does not fall within the 7 activities mentioned above, well you can still try. MyCreative assesses appropriateness of each application on case to case basis. For example, MyCreative might consider the application if the nature of business falls within the value chain of the 7 activities mentioned above. As a general rule, MyCreative will consider businesses with viable economic outlook or if it elevates the status of the local creative industry.
In April 2013, MyCreative in collaboration with Fashion Valet Sdn Bhd (FashionValet) announced a new initiative to provide fashion enthusiasts the opportunity to pitch their creativity and aspirations to run a fashion business. Those selected shall be qualified to apply for loans with MyCreative up to RM2 million.
To be eligible for MyCreative's funding, you must meet the following criteria:-
- Nature of business must fall within the activities mentioned above, or is part of the value chain of the activities encouraged;
- The business is operated by and owned by a company incorporated in Malaysia (Sdn Bhd) and having a minimum paid-up share capital of RM20,000;
- The company's shareholding must be majority owned by Malaysians; and
- The shareholders and directors of the company must have clean credit history and must not have any criminal record.
Submission is to be made online via MyCreative's website. The application should include a business proposal with the following information:-
- Concept Paper detailing the idea of the business itself, the service offerings, target market, and any other value proposition that the business might have.
- Company's Financial Projections detailing a minimum of 5-Year Cashflow, Profit & Loss and Balance Sheet, highlighting when the business is expected to turn profitable (gestation period) and when the funds (if approved by MyCreative) can be repaid.
- State the Funding Limit required, where the funds will be applied, when the funds are required and how it will be used.
Based on the above, before considering to apply for funding via MyCreative, companies need to consider the following:-
1. Having an additional Board member in the company
2. How competitive is the loan interest compared to banks
Companies need to consider whether they are willing to have MyCreative having a Board representation in the company. In the case of equity participation, MyCreative will most likely include terms to have a representation in the Board of Directors or access to Board Meetings together with meeting minutes and resolutions passed by the company. In addition, companies also need to consider whether it is more viable to obtain funding from a commercial bank if they are able to obtain one.
Well everyone, this is another post by us on fundings out there. Hope it helps you in your decision making. Have a great day ahead! Please share and like this post if you find it helpful in the social media that is made available for you down below!