Having sufficient capital is important for starting and running a business. However, not all business people have sufficient capital, especially for their operational activities. Whereas when the business grows, the funds needed will also increase. In the past, capital loans cannot be obtained easily, especially if the loan nominal is large. Business people used to rely on borrowing from neighbors or relatives whose nominal was limited as well as the tenor or loan term so they could not use the funds freely.
Fortunately, getting a loan at this time is not as difficult as imagined because not only banks can provide loans, but you will be able to get loans from other sources. Several ways to get the most effective business capital loans that you can consider are, as follow:
Loans with collateral
You can borrow a loan with collateral for your business capital. This loan is far more advisable compared to those without collateral because the loan limit is bigger. In addition, the time period is longer and the interest rates are also much lower compared to those without collateral. Some banks or financial institutions implement the interest rates ranging from 9% to 12% with a maximum tenor of up to 20 years depending on the size of the loan taken.
Unsecured Loans from the Bank
If you need a quick approval to loan a business capital with a nominal that is not too large, you can apply for a loan without collateral. As the name implies, you do not need to use collateral when making a loan, besides the disbursement of funds is faster than the one using collateral. However, you have to consider the advantages and disadvantages of this loan first before applying it. Funds will be disbursed quickly but the tenor is short and the loan limit is smaller than the one using collateral.
Applying Loans to Finance Companies
You are advised to apply for loans to finance companies such as leasing compared to banks as the process is more complicated and disbursement of funds takes a long time. The process of applying for a loan to leasing is faster and easier when compared to a bank. When you are in an urgent situation that needs money immediately, your loan funds can be quickly disbursed. There are leasing that uses collateral and not. The process to apply a loan is very easy; you can access the leasing site and choose the product service that you need. You can immediately fill out the credit application form by filling in the details correctly. It is recommended to look at the credit simulation first before applying for a loan so you can get the picture of how much money you will get. In order to get the picture of a loan, you can fill in the number of dependents and the tenor or time period first. Therefore, you will be able to understand the resistance, funds that can be disbursed, the amount of interest, and so on.
It is not only finance companies or banks that you can use to apply for loans but for business people behind SMEs who need capital, you can use fintech. Because of the sophisticated technology and increasingly widespread internet network, businesses can obtain loans quickly. Fintech will bring two people together, namely the lender and also those who need a loan. The loan seeker can upload his business to the site then wait until there are investors who want to invest funds or capital into the business. Therefore, the assessment process will be performed by the investor whether the business is feasible to fund or not.
You can pawn your valuables at a pawnshop in order to get a business capital loan. You will get a loan value that matches the item you pawned so that the greater the asset or item, the greater the loan value.
You can use your savings or sell valuable assets, especially if you don't like debt, in order to get business capital from non-loans. Even so, the nominal amount you generate will not be as much as loans from banks, finance companies and other financial companies.
Those are several ways to get a business capital loan that you can consider, hopefully, this information is useful.