When starting the best way to get capital for a small business, there are many things you need to prepare. After having an idea and a business plan, now is the time for you to think about how to get business capital. Actually, business capital is not the main factor in starting a business, there are also home-based businesses that can be run even without capital, namely by becoming a reseller or dropship. However, some businesses require adequate working capital to run properly. Because, providing and promoting a product certainly requires sufficient capital so that the business that you are running is increasingly known by many people so that you get consumers who buy the product. Friends don’t need to worry when thinking about business capital because in this article we will explain how to get easy and hassle-free business capital. Curious? read the explanation to the end.
best way to get capital for a small business
1. Personal savings
The most common way to get business capital is by using personal savings. However, this method cannot be used by some people because the amount of funds in their savings is insufficient. There are also people who save for retirement funds, education funds, to buy other urgent needs, so that the funds are not sufficient to be used as business capital. Friends don’t need to worry if you experience this because there are other ways that can be maximized to get business capital.
2. Loans to family or friends
You can get business capital from family loans or close friends. If you want to borrow in this way, you must ensure that the agreement between the two parties runs on a good relationship. This is important to do in order to avoid the bad possibility of a billing deadline that may not be certain. Make a loan scheme in a professional way that includes information on the amount of funds, deadlines, benefits or returns obtained by family or relatives.
3. Selling assets
If the funds in your savings are inadequate and you don’t get a loan from relatives, another way you can do is to sell assets that have high selling power. This method can be done if you have assets that can be resold, such as jewelry property, motor vehicles, or electronic goods. However, this method requires considerable sacrifice, especially if you only have one asset. In addition, make sure also the profit and loss in the sale of these assets so that the results are promising to be used as business capital.
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4. Pawn assets
Friends can pawn assets in a pawn company to get business capital. Usually the assets that can be pawned are gold, BPKB, electronic goods, and others. When you are able to pay off, the assets can be redeemed again. Choose a club company that is legal and registered with the Financial Services Authority (OJK). You need to know, usually the loan period given by the pawn company is not as long as the tenor provided by other financial institutions.
5. Looking for business partners
Strengthen business ideas and plans to get promising partners. In addition to increasing business capital, business partners can also work together to find creative ideas for the progress of the business being undertaken. However, this method also has drawbacks that you need to pay attention to. When looking for business partners, you should find people who have the same vision and mission to develop the business. Working with business partners is not easy, there will be debates or differences of opinion that will occur in the middle of the trip. Therefore, choose the right partner so that the business can grow faster.
6. Obtaining business capital from consumers
In certain business models, you can get business capital from consumers, you know. Some business models that undergo this system include resellers, dropship, selling with a pre-order system, or delivery services. For reseller and dropship systems, usually business can be done with small capital or even without the slightest capital. Meanwhile, the pre-order sales system can get capital from an advance paid by consumers. After the order is complete, then the consumer pays off the pre-order product.
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7. Participate in supporting programs
Small and Medium Enterprise support programs can be one way to get business capital. Many government and private institutions offer this facility in order to promote SMEs to promote local products. Most of these programs do not only channel business capital, but also provide training and mentoring to start a business from scratch.
8. Online loans
Currently, many people are starting to look at online loans to make transactions, not least when looking for capital for business. Although it is quite easy and practical, you still have to be careful because there have been many reports that have been submitted to the OJK regarding online lending institutions that are illegal and harm many consumers. Make sure to choose a financial institution that is legal and credible so that data and fund security can be maintained.
9. Unsecured Loans
Unsecured loans in banking institutions can be one way to get business capital. If you are interested in using the service, you must be careful to find out what the interest rate is. Avoid choosing a service with a very high interest rate, because it will make it difficult to process payments. The drawback of this service is that lending only applies to customers who already have an account at the bank.
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10. Multipurpose credit
Did you know that one way to get business capital that is relatively easy, safe, and a fast process is a multipurpose credit service. With Multipurpose Credit, you can get cash quickly just by pledging your proof of owner of a motorized vehicle, car or motorcycle. This method is quite easy to use because these assets can still be used to support mobility and expand the business being developed.
That’s the best way to get capital for small businesses, hopefully it’s useful.