You who have just started or have a business under 3 years, the most crucial thing for business development is the small capital and limited access to finance. Ideally start a business using funds from personal pocket rather than debt and after the business starts and has a market development plan another obstacle arises, namely:
Limited personal capital.
Access to finance is also limited because the business is still new so there are not many creditors (banks) who glance at your business.
If the business conditions as above, the review below fits into consideration. It turns out that there are many ways to get small business capital loans from various sources. However, some considerations and tips such as the following need to be considered so that the business of getting capital can be smooth:
- Ensure a Good Credit History
Every credit proposal the first thing that the creditor will check is your previous credit history. The process of checking this credit history can be found 3 things like this:
- Bad credit history, the results of the credit application must be rejected.
- Credit history is good, credit application results are easier to accept.
- You (your business) do not have a credit history, creditors will be more careful in giving credit because the character has not been tested.
The above considerations are very important for employers to ensure that they do not have arrears in the bank. Entering a blacklist of credit for entrepreneurs is tantamount to closing the business itself.
Each credit will be recorded in the credit history on the Bank Indonesia system. The SID (Debtor Information System) shows a credit record of everyone who has or is currently holding a loan at a bank. If you ever have any arrears and even the smallest you should be cleared immediately.
- Use Services from KTA Fintech
The next process is to look for creditors to finance your business. Banks can be the main goal, but unfortunately not all small entrepreneurs can get access to banking. One obstacle that is often experienced is a strict requirement, for example there must be a reasonable guarantee.
If you experience this problem, there is no need to worry because there are now alternative financing institutions other than banks. The presence of fintech is impacted by many technological advancements that offer loans with terms and conditions easier and flexible than banks that can be used as an alternative source of funding for small business actors.
- Business Financing Through Venture Capital
Capital constraints such as the above review, besides being able to find solutions through KTA Fintech, can also try other alternatives, namely financing through venture capital. There are several types of financing that can be used as alternatives and which are definitely more flexible than banks such as the following:
Equity Financing, is a type of direct financing in this case the venture capital company engages directly in the business partner company.
Semi Equity Financial, is a type of financing by buying convertible bonds issued by a business partner company.
Established a new joint venture from a venture capital company with a partner company to establish a new business altogether.
Profit Sharing, is a type of financing aimed at small businesses that do not yet have the form of a PT legal entity, but it is not possible to have a legal entity, if both parties want each other to.
Venture capital can be a business solution when there is no guarantee in the form of fixed assets. The guarantee given to the venture can be in the form of the business itself. Ventura focuses on micro entrepreneurs by throwing credit to unbankable entrepreneurs, which are difficult to accept by criteria or profiles by banks.
- KUR low interest
KUR (People’s Business Credit) is the government’s flagship program to increase the number of entrepreneurs in the country. This program is intended for small entrepreneurs who have never had a loan before so they can develop their business.
Some characteristics of KUR products that need to be known to the public such as the following:
The interest is very low when compared to business loans in general.
The government provides interest subsidies on KUR loans.
KUR is channeled only through several banks.
In practice, KUR stipulates a number of loan requirements. What is clearly not as tight as a bank, but also not as loose as Fintech and Ventura, but certainly the lowest interest.
Peer To Peer (P2P) Lending is one of the fintech innovations in the form of a loan marketplace that brings together fund owners and borrowers directly. Thanks to technological advancements, the function of banks as intermediaries is eliminated in this marketplace because the owners of funds and borrowers can directly relate to technology assistance so that the loan process becomes easier and more flexible.
The following are some P2P Lending platforms that are quite popular and can be used by small entrepreneurs:
Investree that focuses on bill financing, also known as invoice financing. Entrepreneurs who have bills can apply for financing for these bills. There are no guarantees in this loan.
Modalku offers loans to merchants in Tokopedia e-commerce. There are no guarantees in this loan.
Amartha provides loans to groups (group lending) so that prospective borrowers who do not meet the requirements if borrowing themselves (individual lending) can apply for credit.
- Fixed Installments on Credit Cards
Even though it seems creepy, making a business loan with a credit card can be another alternative. No need to be too scared, the condition is to use an installment loan facility with a credit card limit. This installment interest is lower than the credit card transaction interest.
The process is instant, immediately liquid because the facilities are attached to a credit card. Another advantage is that when compared to taking a KTA loan, installments with credit cards offer lower interest rates. This facility is also free of penalty if accelerated repayment is carried out.
- Credit Union Cooperatives
By becoming a member of a cooperative, it is easier to get a business capital loan facility with a relatively easy and fast process. One of the requirements to become a member of a cooperative is the obligation to place deposits first. Members can apply for loans according to the amount of deposits.
- Using KTA Business
KTA business is a bank product specifically for unsecured types of loans for entrepreneurs. To get KTA business, the bank will see and assess the business as a basis for providing KTA loans. The ceiling provided is large enough for up to Rp1 billion without collateral.
- Utilizing Homes & Cars
Homes and cars can be used to obtain business capital with multi-purpose financing schemes. If the status of the car or house is still a credit, then you can request a top-up for the current KPR or KMG loan. Top-up is the addition of new loans on the previous loan ceiling that can be used for business financing.
- Completeness of Requirements Documents
Prospective debtors must understand the flow of credit and file approval needed so that the proposed business capital can be smoothly submitted. The main documents include identity documents and business-related documents. Collection of documents often requires time. Especially if related to licensing.
The Key to Success in Credit Disbursement is Understanding Credit Flow and Complete Requirements
One of the challenges for new entrepreneurs is to get capital to develop businesses. If you use the normal route, it is impossible for banks to provide loans if they do not have collateral. Therefore some of the loan alternatives above can be your business solution. The key to the success of your credit application is to understand the flow of credit and complete the requirements.