When you decide to open or expand a business, difficulties in terms of funds may arise. To overcome this problem, the option to seek loans from outside parties may be done. However, what things should be taken into consideration in applying for a loan?
Broadly speaking, there are two aspects that must be considered. First is in terms of business conditions. And the second is the choice of places that will be a source of funds. For a more detailed explanation, here is the review.
From the Business Aspect that is Being Managed
This aspect is closely related to business conditions that will affect how urgent the lending option is how much money must be raised, and ability to pay it off.
This aspect must be examined first before seeking a loan to minimize the impact of unstable production. Imagine if a business only added debt without results due to poor financial management.
Which Party or Agency Will You Make a Loan for?
In this article, there are two agencies that are commonly used and one alternative that you can make a source of looking for a loan. And, here is an explanation of each provider.
After completing the loan plan based on business conditions, it’s time to look around for the nearest bank to find a loan. Try to find out what loan facilities the bank offers and the terms. In addition to the usual types of lending facilities, several banks also offer People’s Business Credit (KUR) facilities.
People’s Business Credit (KUR) is a credit service or funding formed by the Government. This service is aimed at businesses that are deemed likely to develop and are able to return the credit.
Before finally applying for funds to the bank, you should first determine the amount you want to borrow (based on urgent needs), pay attention to the loan interest rates that banks apply, and also determine the time period. See also whether the bank allows the submission of additional loans even though the previous loan is still running.
What is Unsecured Credit (KTA)?
Still struggling with banks, Unsecured Loans (KTA) are types of offers that do not require you to provide collateral such as a BPKB letter or land certificate when you want to disburse some funds. However, this system is also quite strict.
Apart from the quick disbursement process, the borrower must be satisfied with a small and limited loan amount. And, because the lending process is unsecured, interest rates tend to be higher. For the range, this depends on the provider bank.
Online peer-to-peer lending (P2P Lending) provider
In an increasingly sophisticated and digital era, online -based loan providers have also grown rapidly. With no guarantees and fast processing, this type of offer is increasingly favored by business people.
However, even without collateral, the prospective borrower must complete several requirements such as submitting valid personal data and income information through pay slips and the like.
When deciding to use this type of service, be sure to look carefully at the provider profile. One of the safe providers of p2p lending is Acceleration because it has been registered and overseen by the Financial Services Authority (OJK).
Crowdfunding, a promising alternative
Not much different from point number 2, this system can also be a source of fundraising. The definition of crowdfunding itself is fundraising for one type of project from a large number of investors (financiers). Funds collected through an intermediary (platform) will be distributed to the project owner or the person who applied for an injection of funds. In raising funds for UKM, Akseleran also uses this crowdfunding concept.
The work system is the project owner will campaign the project design through social media channels. He must be able to convince investors. He must also explain the profit sharing agreement or other types of benefits.There will be a deadline or deadline for collecting these funds. If the target has not been collected after the deadline has been determined, the funds from investors who have entered will be returned to their respective accounts.
At present, the OJK is still reviewing the crowdfunding service system, together with institutions such as the government, Bank Indonesia, and other fintech industry players. If this type of crowfunding financial services system meets the requirements, then this system will be asked to register with the Financial Services Authority.
There are many ways to find sources of loans. But that must always be considered is, do not let the urgent conditions make you negligent in choosing a safe fund provider. For indicators or benchmarks, make sure the provider has permission and has become the trust of many people.
That way, your business will avoid the threat of fraud. If necessary, ask for references from someone you know who has used the service.