The presence of small business capital loans is very important to help business people start and develop their businesses.
With this loan, various activities that occur can take place well, ranging from operational affairs, emergency funds needs, additional capital, and so forth.
But unfortunately, many people do not know what types of capital loans are in Indonesia. For this reason, let's discuss small business capital loans and profits from each of these loans in this article!
1. 7 Alternative Small Business Capital Loans
The progress of the times and technology also supports the growth of business in Indonesia. Non-bank financial institutions and banks are competing to offer their best products, without exception to small business capital loans!
Well, for those of you who have plans to start or develop your current business, the following 7 alternative loans can be your choice.
1.1 Loans With Collateral
As the name implies, loans with collateral are types of loans that require loans to guarantee the assets they have as one of the loan requirements. Guaranteed assets are generally in the form of BPKB Motorized Vehicles and House Certificates.
The advantage of applying for loans with collateral
- A fairly high loan ceiling
- Long tenor
- The amount of funds obtained tends to be greater
1.2 People's Business Credit (KUR)
People's business credit or abbreviated as KUR is a type of loan given by the government, both for MSMEs and novice business people who need capital.
The benefits of this one loan can be easily felt for companies engaged in the industrial, agriculture, fisheries, marine, forestry, and financial sectors in the form of savings and loan services.
To get public business credit, you can apply for a loan from the bank running this program.
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1.2.1 The advantage of applying for a loan in the People's Business Credit (KUR)
- Low interest 2% - 6%
- The loan limit is quite large up to 500 million
- Long tenor ranges from 1 - 3 years
- The requirements are not complicated
- Can be submitted without guarantee
Hearing the word Cooperative may be most of us no longer strange this word. Referring to Law No. 17 of 2012, Cooperatives have a task that is similar to the bank, namely raising funds from cooperative members and then distributing them to members and non-members.
The most obvious difference between savings and loan cooperatives and banks is the amount of interest given. Savings and loan cooperatives usually set a larger amount of interest.
Nevertheless, the savings and loan cooperatives are considered quite profitable for their members because at the end of the period will be shared the results of the business difference obtained for one year after being reduced by operating expenses.
Generally, the requirements for applying for a loan in a savings and loan cooperative are a photocopy of KTP, a Family Card, a Salary Slip, Formular Funding Funds, a Photocopy of the United Nations, or an Electricity Account.
1.3.1 The advantage of applying for a loan at the cooperative
- The loan application process is easier
- Disbursement of funds is generally faster
- Enables to borrow without guarantees
- There is a distribution of the results of the business difference
1.4 P2P lending
P2P lending or the extension of peer-to-peer lending is one of the fintech (financial technology) products that offers small business capital loans that can help you in developing your business or playing.
The way P2P lending works is quite unique. This one platform works by bringing together creditors (capital owners) with debtors (capital borrowers).
There are many P2P available on the outside there with affordable loan interest. However, make sure the P2P you choose comes from a company that is guaranteed legality, yes!
1.4.1 The advantages of P2P lending for debtors
- Unsecured loan
- Low-interest rate
- Easy and fast
- Requirements are not complicated
- Can be used for various needs
1.5 Working Capital Credit
Working capital loans are one of the bank products that also offer alternative business capital loans for those who want to start a business but are hindered by capital.
This financial product is one of the programs made by banks intended for small business capital loans. The scope of the use of wider working capital loans that can be used as business operational capital or pay trade debt. This credit period is generally only 1 year. Therefore, this type of credit is classified as short-term credit.
Terms and Conditions that you must fulfill in order to be able to feel the benefits of this type of loan, among others, namely having a business license, the existing business has been running for approximately one year, to attach the completeness of documents such as KTP, Family Card (KK), Savings Books, Income Information, proof of dependents or installments if any.
1.5.1 Excess working capital credit for the debtor
- Accelerate business or business development
- Helps business operations continue to run smoothly
- Protecting Business from Working Capital Crisis
As reported by the Financial Services Authority (OJK), venture capital companies can be interpreted as companies that fund a business or company within a specified period.
The form of activities can be an agreement in the distribution of results, shares, and so forth.
To be able to apply for a loan to this type of company you are required to make a proposal that explains related to the business you are building and the profit scheme that will be obtained by the venture.
Excess venture for debtors
- Product marketing is more efficient
- Get trust from the bank
- Venture capital obtained tends to be large
- Helps the process of expansion or business development become easier
1.7 Loans without collateral
KTA which stands for a loan without collateral is one type of loan that you can use to get venture capital. By selecting this type of loan, you do not need to guarantee the assets you have such as securities, BPKB vehicles, or home certificates.
1.7.1 The advantage of choosing a loan without collateral for the debtor
- Without guarantee
- The interest offered is quite low
- Tenor up to 60 months or 5 years (depending on the policy of financing companies)
- Easy and fast process
One of the finance companies that offer loans is BFI Finance. BFI Finance has been established in 1982 and became the first financing company in Indonesia to record its shares on the Indonesia Stock Exchange.
You don't need to worry about applying for a loan at BFI Finance because BFI Finance has been verified by the OJK (Financial Services Authority).
What are you waiting for? Develop your business and get more profit with additional credit without guaranteed capital!
Well, BFI buddy, that's some of the alternative options for small business capital loans that you can use for your business. Make sure to be careful and do research first before applying for a loan from a finance company.