Brilio.net - Business is one of the most obvious ways to make money. It's no wonder that opening a business is chosen to seek fortune in the business world. The bigger the business you run, the higher the business capital required.
The money you use for business capital does not always come directly from your wallet. Of course you will look for ways when your capital is lacking. You might want to borrow money to start a business. Borrowing money certainly has its own advantages and disadvantages. For this reason, borrowing money without having to provide certain collateral will make it easier to run a business .
Below, brilio.net has summarized from various sources, Tuesday (12/3), how to borrow money for business capital without collateral.
How to borrow money for business capital without collateral.
1. Maximize the use of government programs.
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The government has many programs in the form of cash incentive assistance. In fact, all ministries have their own assistance to the community. You must learn about all the assistance opportunities provided so you can take advantage of them. The Ministry of Finance, for example, has a Business Capital Assistance Program which is still being distributed to MSMEs with the aim of improving community welfare. Apart from this program, you can adapt government programs to the business you are starting.
2. Borrow from someone you trust.
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Establishing good relationships with the people around you can be your special luck. Communicate well about your business capital needs. Give as much detail as possible so that the person can really trust you to give them the money. Provide honest information about your business plans, including the risks you may face to further build trust. When you are able to convince him, regular installments can keep your relationship good with the financier.
The agreement you agree with your trusted person is the main key. Calculate as best you can your capital needs, including the time period you can pay it off, the interest you can afford, and other regulations with the financier. Make the agreement as professional as possible so that you can truly hold each other accountable. If necessary, you can make a written agreement that is signed with the investor.
Treat the person who gave you business capital as a partner, make him believe that you will be successful together. As an investor in your business, of course your services will be very great for you, so give your rights well in your business to make your business run smoothly.
Intern: Robiul Adil Robani
3. Credit facilities without collateral.
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Unsecured credit (KTA) is a program that most commercial banks in Indonesia have. Not infrequently, banks compete with each other to make KTA a superior product for their customers. Businesses that require a lot of capital sometimes make it suitable for people to use this program.
In KTA, the consideration is not the assets for collateral, but rather the assessment of the proposal and your ability to pay the bill. When the bank assesses that your needs are worthy of capital assistance and you are able to pay, the KTA will quickly decrease. You only need to fulfill the procedures of the bank you are going to to get KTA. This sophisticated era also makes the process easier because it can be done online, and the money will even go straight into your account.
4. People's business credit.
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People's Business Credit (KUR) is an Indonesian government program which aims to provide access to financing for MSMEs with low interest and easier terms. KUR is provided without collateral (unsecured), meaning that it does not require collateral in the form of certain assets to obtain credit.
The KUR program has several advantages, including relatively low interest compared to commercial credit, flexible terms, and a relatively easy application process. This makes KUR a good solution for MSMEs who have difficulty getting financing from conventional financial institutions.
KUR recipients are MSMEs that are legal entities or have legitimate informal businesses, with business turnover in accordance with applicable regulations. The amount of credit that can be given varies, depending on business needs and the applicant's repayment capacity.
In applying for KUR, prospective recipients must submit a business proposal containing plans for using funds, income estimates and business development strategies. The application process is carried out through banks that collaborate with the government in the KUR program. One other condition is the amount of the borrower's net worth:
- For those who are micro, they have a minimum of around IDR 50 million in total assets.
- For those who are small, have a minimum of around IDR 50 to IDR 500 million in total wealth.
- For those in the middle class, they have a minimum of around IDR 500 million to IDR 10 billion in total wealth.
The Indonesian government routinely evaluates and improves the KUR program to increase its effectiveness and benefits for MSMEs. With the existence of KUR, it is hoped that MSMEs can grow and develop so that they are able to make a greater contribution to the national economy.
5. Borrow from a savings and loan cooperative.
The naming of savings and loan cooperatives is based on classification based on their business field. This means that the cooperative's way of providing welfare for its members is through savings and loans. The principle of kinship in cooperatives can be taken into consideration because the aim of establishing cooperatives is for the benefit of joint economic growth.
To borrow from a cooperative, you only need to go to the cooperative that suits your business. Ask the officer for information about taking out a loan. Usually, the terms of the loan are not complicated. You only need to prepare your KTP, NPWP, and an explanation regarding your business. In addition to these requirements, cooperatives may also request other documents. Regarding the nominal amount of money borrowed, tenor and other agreements depend on each cooperative.
6. P2P lending.
P2P is a loan through peer to peer (P2P) lending financial technology which can be accessed online. This has been proven to make the application process faster and easier, without requiring collateral. You can look for more detailed information on P2P provider platforms such as Amartha, KoinWorks, Akseleran, Modalku, Findaya, Danamas, Investree, and other providers.