Business Loan From Bank

Why do you need a business loan?
Often the main obstacle in developing the business due to the financial status of the business are not adequate. Now with financial support in the form of a bank loan, you will not miss a business opportunity that comes every time.

See also: 4 Reasons Businesses Succeed Borrowing Money

What is the business loan?
Business credit is a loan in a certain amount by the Bank to support business objectives, based on credit agreements where you as a borrower is required to pay principal, interest and other charges in a period that has been agreed.

Also Read: Two Options When Looking for Credit Loans

Financial Solutions
Several types of loans are given according to the needs of customers, including:

Working capital requirements, the loan to cover the purchase of inventory or accounts receivable financing. In general, loan term between 1-3 years and the bank could offer the opportunity for customers to extend the line of credit at the end of maturity. Loan payments can be paid in installments or all at once.

Investment needs, ie for the needs of long-term financing, investment funds, such as supporting the purchase of kiosk stores, construction machinery plant or purchase of motor vehicles and others. Investment credit is usually quite long and usually more than 3 years. In general, the repayment of capital investment in the installment loan with interest will be made on a monthly basis.

Terms of Business Credit Application:
Clients must meet certain requirements to apply for business loans, including:

    Indonesian citizen who is a resident of Indonesia, or business entity located in Indonesia.

    Documents required as SIUP, TDP, TIN, and other approvals.

    This type of activity does not conflict with the law and not a speculative business.

    Provide collateral, if necessary.

    Eligible creditworthiness of banks.

There was a time when banks ask for additional collateral in the form of assets to further enhance the confidence in the bank. As well as a few things you should consider when applying for bank loans, among others:

• Ask your bank about the cost of principal, interest, fees, etc. before applying for credit.
• Calculate your business ability to repay the loan and interest each month.
• Credits earned must be used in accordance with the purpose, which is to finance your business. Misuse of credit can affect business continuity in the future.
• Openness to the bank by providing clear information about the details of your business can help the bank to assess credit worthiness.
• Make sure you understand the credit agreement will be signed.
• The provision of bank credit is trust. Maintain your reputation with the payment obligations on time and in accordance with the number of loan agreements to keep your name into the list of problematic creditors. 
 

Related Articles :