There are at least 5 reasons a person needs a business capital loan for a business that is being run. The Bankie Days team will discuss it for you. Happy reading and getting another understanding from a different perspective!
Business Capital Becomes Constraints
In developing your income, you can’t help but work. Not infrequently those who work as employees want to develop their economic potential and wings by way of entrepreneurship or doing their own business after collecting capital from the results of their work as employees in the previous company.
Talking about opening a business or running a business, capital is one of the main things that must be prepared, whether it’s saving from the results of previous work or borrowing from parents, relatives, banks or other business capital lending institutions. The greater the business potential that you do, the greater the capital that must be prepared and issued.
In a business trip, there are times when an entrepreneur needs additional capital to develop his business potential. Here are some reasons why a capital loan is needed in the business development process.
# 1 Business Expansion
In the process of your business trip, it is very nice when you experience increased sales in addition to your dreams of developing and expanding your business. Every profit that has been collected, of course, requires special management and management in managing the cash flow between operating costs and also costs for business development. Of course in the development of the business, additional capital is needed for various needs such as marketing, office or new inventory warehouse, renovation, recruiting new employees and so on. The business capital loan that you get can cover all the costs needed without having to drain operational costs in your budget. The more business develops, the greater the operational costs and other costs needed.
# 2 Inventory
Do you do business by selling various items and stocking these items is needed to meet the number of requests from consumers? Maybe you often get difficulties in managing the availability of these items. In order for customers not to be disappointed, the stock should always be ready according to consumer demand because if it is not the case, then the customer might choose another store to fulfill their needs because their stock is empty. If this happens, of course you will lose your customers and also the trust of these customers.
Business capital loans will play a very important role in this matter. Especially if you still have to wait a long time so that the budget for operational costs and increased inventory can be separated and each is fulfilled. Also, your business may experience a sharp increase in sales from usual at certain times, and if your product inventory is not ready to deal with it, your potential store customers might run away to competitors. The existence of a business capital loan can certainly help you to re-stock products on a regular basis, so you won’t experience out of stock.
# 3 Maintain Cash Flow
For those of you who have just opened a business field, maintaining cash flow is the biggest challenge and a problem that must be taken seriously. In terms of paying for operational costs, employee salaries, various bills that need to be paid, you need cash flow that continues to run. Especially when information about the product you are selling is not yet widespread so it has not attracted many consumers.
If you experience things, it’s time for you to apply for a capital loan whether it’s short term or medium term according to your abilities and planning. Also, there are times when you need funds for marketing campaigns, paying warehouse rent, to re-stock items while new income can be obtained in a month. Business capital loans will be very useful to refresh your business cash flow.
# 4 Caring for and Expanding Equipment / Equipment
Maintenance of equipment and supporting equipment for your business needs to be maintained regularly and of course this requires funds to be spent. Maybe the funds that will be spent are not small. If you open a sewing sewing business, various sewing machines need to be done so that the items remain durable and their usage remains optimal. To protect it, business capital loans can be the most appropriate alternative to buying equipment and equipment to boost your business activities.
# 5 Preparation
Sometimes we can predict what will happen to market conditions and fluctuations in demand and changes in world trends. The importance of emergency funds for various preparations for things that are beyond our predictions and planning. Thus we have a handrail fund if at any time there is an event that we do not want regarding the land of business that we are working on.
Requirements for Submitting a Loan to the Bank
- Personality – Character. Investors or debtors have good character in the sense that the person is not included in the List of Despicable Persons (DOT). In addition, the bank will look at business information and the debtor’s environment.
- Capacity – Capacity. The ability of the debtor or borrower to repay the loan. Usually the bank will see the finance, management, marketing and various other aspects.
- Capital – Capital. The amount of capital from the debtor, this can show how serious the debtor is in investing their capital and this kind of thing is usually done for working capital loans and investments.
- Guarantee – Colateral. Usually the amount of collateral must be greater than the loan.
- Economic Conditions – Condition of Economy. The economic condition of the borrower and its environment is one of the assessment conditions of the bank in addition to the aspects of competition, broad environment, technological developments, raw materials and so forth.
Administrative Requirements that must be fulfilled
- Identity Card / KTP
- Marriage Certificate / Marriage Certificate
- Saving book
- Family card
- Salary slip
- Guarantee Documents
Business Capital Is No Longer Constraint
No need to worry anymore in developing your business when limited capital becomes an obstacle. Through the discussion above, the Bankie Days Team hopes to be a solution for you in overcoming your business problems. If you experience difficulties in financial arrangements for your business and business, Bankie Days is here to help you.
Do you have various other practical suggestions in the process of applying for business capital? Share your experiences and responses through the fields provided below and also share articles from Bankie Days with your colleagues and acquaintances. thanks.