Many people have the desire to start a business. However, not a few also find it difficult to realize their wishes because of constraints in financing. In fact, there are currently many business capital loans that make it easier for everyone to start an online or offline business. You can get this loan from various sources, each with its own advantages and disadvantages. You just need to choose which loan source is suitable to help you run your business from the start.
Source of Business Capital Loans
Here are some sources of business capital loans that you can choose from, including:
Business capital loans from family or friends
Business capital loans can be obtained from family or close friends. The source of this loan does look easy, but it turns out that there are several things that you must pay attention to, one of which is by making a written agreement between the two parties and establishing a good relationship during the loan repayment process. Therefore, you can make a loan scheme in a professional way that includes information on the amount of funds, deadlines, profits or returns obtained by the party lending the business capital.
Business capital loans by mortgaging goods
You can also get a source of business capital loans by mortgaging goods or assets at a mace company. Usually, the goods or assets that can be pawned are gold, vehicles, or household electronic equipment. The pawnshop will determine the value of the items that are eligible to be pawned to provide business capital loans to friends. Choose a club company that is legal and registered with the Financial Services Authority . You need to know, usually the loan period provided by the pawn company is not as long as the tenor provided by other financial institutions.
Online-based business capital loans
Along with the development of the digital world, there are more and more online-based business capital loans. In fact, many people also take advantage of this service because the requirements are considered practical and fast. Nevertheless, you still have to be careful because there have been many reports that have been submitted to the OJK regarding online lending institutions that are illegal and harm many consumers. Make sure to choose a financial institution that is legal and credible to avoid fraud.
Business capital loans in cooperatives
Friends can also get a capital loan for a business from a savings and loan cooperative. However, some cooperatives only provide this service specifically for their members. Loan services cannot be provided to people outside of members. Therefore, if you intend to use this loan source, be sure to join a savings and loan cooperative first to get the desired cash funds.
Business capital loans with unsecured loans
Sources of business capital loans that are still in demand by many people are unsecured loans. These loan services are usually provided by banking institutions. Usually the service can be used specifically for the customers of the bank concerned. Therefore, if you want to get a loan with, you must become a customer at one of the banks that provide this service. If you choose this service, you must be careful to find out what the interest rate is. Avoid choosing services with very high interest rates, because it will be difficult during the repayment process.
Business capital loan with multipurpose credit
Multipurpose Loans can be a solution for friends when they want to get a business capital loan that is relatively easy, safe, and the process is fast. With Multipurpose Credit, you can get cash quickly just by pledging the Motor Vehicle Ownership Proof of the car or motorcycle you own. This method is quite easy to use because these assets can still be used to support mobility and expand the business being developed. In fact, you can apply for a business capital loan only from home, just by using a smartphone.
Advantages of Business Capital Loans
By using loan services for business capital, you can get several benefits, including:
Get funds fast
As you already know, loans for business capital can make it easier to get funds faster. This is clearly an advantage of loan services because not everyone has enough cash to run a business from scratch. Business capital is also quite relative, not all businesses require small capital. There are also types of businesses that require large amounts of capital, so a loan can be the solution.
Accelerate business development
Capital plays a big role when running a business from scratch. That is why loans for business capital make it easier for you to accelerate business development for the long term. With the funds from the loan, the needs related to the business that you run will be met more quickly. One example is when you have to provide a large enough stock of goods, increase the types of products sold, hire new employees, and take product photos as promotional material. All of these activities require adequate funds to run properly.
Business operations become smoother
Business capital loans can also be a support to facilitate business operations that you run, you know. This business operation includes routine costs that must be paid every month, such as internet fees, electricity costs, space rental fees, and others. Although smooth operations are related to good management, capital loans also play a role in supporting the smooth running of your online and offline business.
Cash flow is healthier
Did you know that business capital loans can also help your business cash flow to be healthier. You can maximize the funds from the loan if unexpected things happen while running a business. Because, running a business is like a spinning wheel, there are times when the business is at its lowest due to various factors. The presence of loan funds at the beginning can help revive the business to get multiple profits.
Disadvantages of Business Capital Loans
In addition to advantages, business capital loans also have disadvantages that you need to know, including:
Must meet the terms and conditions of the financial institution
Loans for business capital are provided by various existing financial institutions. Each of these institutions has terms and conditions that must be met by potential customers who want to apply for a loan. Friends can’t just apply for a loan because it’s certain that the funds won’t be disbursed. Therefore, make sure you choose the appropriate loan source and follow every applicable terms and conditions in order to get the expected funds.
There is an interest rate
The disadvantage of working capital loans is that there is an interest rate that must be paid during the repayment period. However, you don’t need to worry because there are currently many capital loan services with relatively low interest rates. Before applying for a loan, you should do a simulation first to find out how much interest you have to pay each month, how long the tenor or loan period is, what the repayment mechanism is, and whether there are other additional costs or not. That way, you can find out detailed information about the funds that must be paid every month.
From an explanation of the sources, advantages, and disadvantages of a capital loan for this business, are you more confident about applying for a loan? Before applying for a loan, make sure to choose a credible and trusted financial institution so that the transactions made are safe.