Many people who want to start a business are often constrained by limited capital. With sufficient capital, the need to open a business can be done with careful financial planning. However, contract terms and conditions are so complex that not everyone can get business financing quickly and easily. How to get capital to start a business? If you are currently looking for a loan to start your business, you can try some of the ways below, depending on your ability. arrayofthings.us has summarized 15 ways to get business capital with an entrepreneurial spirit or for business that you can try.
Here’s How to Get Business Capital in 2022
1. Use of personal savings
How do you find business capital without debt? In fact, one of the most popular ways is to use personal savings. However, this method is not available to all categories, as it often fails due to lack of funds in the savings account. It goes without saying that the actual savings and guarantee funds are for the purchase of retirement funds, education funds, funds for the payment of insurance premiums and policies, and other urgent needs. But if you can’t do it first, don’t worry, there are still ways to find your next business capital that you can choose.
2. Scoring assets as business capital
Looking to sell your assets for business? Now, the best way to find venture capital for your business is to pawn the assets you currently own. By pawning your valuables, you can get cash quickly, but you won’t lose your assets.
In general, Pegadaian accepts private property in the form of electronic certificates of title, gold jewelry, BPKB, and others, depending on the applicable provisions and values. In addition to the state Pegadaian, there are currently many institutions that offer business capital to choose from within their own policies. The loan amount can be customized up to IDR 1 billion and the term can be extended.
3. Borrow capital from a bank with an unsecured loan (KTA)
Banks are the easiest to find venture capital providers. There are many banking options to obtain business financing with various terms and systems that can be tailored to your needs. Unlike a pawnshop, where assets must be secured, a business capital loan from a bank allows you to borrow principal without collateral against valuables. The way to borrow business capital from a bank is by choosing an Unsecured Credit (KTA) product.
But keep in mind that business capital loans are usually only used for companies that are already running and authorized as healthy businesses. Generally, banks offer multipurpose loans that provide security even if your business seems to be able to make payments. However, this method is actually not limited to entities, as some banks also offer opportunities to individuals seeking individual business capital from banks.
If you are interested in using KTA services, please note that you also need to know how much you care. The reason is, if you choose an unsecured loan with a very high interest rate, it will make it difficult for you during the repayment process. In addition, this service usually offers loans only to customers who already have a valid account at the bank.
If you are interested in getting a business capital loan at a bank, some of the requirements you need to prepare first are having a photocopy of your marriage certificate, family card and passbook for the last three months. For other more specific requirements, for example, according to your current job.
4. Borrow business capital from fintech companies
With the development of internet technology and smartphone applications, many online companies offer peer-to-peer lending-based online loan services. Where can I get business money through P2P lending? Simply put, peer-to-peer lending is a method of providing loans to individuals/companies and vice versa. People can apply for loans for business purposes. So, indirectly, these fintech companies connect lenders and borrowers online through an app.
FinTech apps allow anyone who creates an online account to give or apply for loans for various purposes without interfering with the services of legitimate financial institutions.
5. Obtaining business capital from the cooperative
Cooperatives are one of the savings and loan institutions that are well known by the Indonesian people, especially in rural areas. Capital loans to small and medium-sized enterprises are often provided through cooperatives, the main requirement of which is to first become a member of the cooperative. In addition, cooperatives operate on a family basis and prioritize common interests. You can register as a member which is very easy to manage on how to get business financing from a cooperative.
6. Business capital from the government (KUR or Kredit Usaha Rakyat)
This program launched by the government is welcomed by Micro, Small and Medium Enterprises, Cooperative Activists (UMKMK) and entrepreneurs who want to get debt-free business capital. KUR has several types of businesses, including agriculture, fisheries, forestry and other businesses.
The purpose of KUR or the People’s Business Credit Program is to create jobs and alleviate poverty. This method of raising funds for businesses without government guarantees is expected to improve the economy of the SME sector and create jobs. In fact, this step can also be used as a way to get business capital for entrepreneurial start-up students.
7. Venture capital
If it is difficult to borrow from a bank because you do not meet the requirements, you can apply for a way to obtain investment capital with the terms of a cooperation agreement with investment capital provided by non-banks. So, in short, this venture capital loan is like an investor’s investment in shares in your business or business. Usually this institution does not require collateral or very strict conditions like banks and KUR.
8. Borrow capital from e-commerce companies
Nowadays, marketplace or e-commerce owners also see the opportunity of online loan programs becoming a major need for entrepreneurs, especially marketplace users. To keep up with banks and fintech companies, some e-commerce companies have launched venture capital loan programs related to the development of online stores and businesses being developed by budding entrepreneurs.
This unsecured business capital loan program targets merchants who sell online on e-commerce platforms, and the loan amount is adjusted to the online business transaction data. Commercial capital loans offered by e-commerce are usually offered in the form of payers or installments without a credit card linked to the user’s e-wallet.
9. Get a business capital loan from your e-wallet
Apart from fintech companies, startups that are currently working on e-wallets are making it easier for users. All online and cashless transactions have changed the way people trade. One company that sees this capital loan opportunity is OVO. By implementing the OVO Paylater program, you can get an unsecured business capital loan by registering as an OVO user.
The type of loan offered is installments without a credit card which allows OVO to connect to many online stores or partners. This business capital loan program applies an interest rate of 2.9% per month and a maximum loan amount of Rp 10 million for 3, 6 and 9 months.
10. Participation in investment seminars
Not only are you looking for funders for your venture capital, but many funders are also looking for young entrepreneurs with promising creative business ideas. This allows you to find information on where to hold investment or financing seminars to meet with investors. Large seminars, such as exhibitions, talk shows, and even internet networks are usually held in certain industries related to finance. Prepare a business plan and business model template, as well as a cooperation proposal that will be presented to potential investors at a later date. If your business idea is good, it is not impossible that investors will not hesitate to offer venture capital and other forms of mutually beneficial cooperation.