financialtreat – will explain about How to Make a Financial Business Loan in a Bank that you will get in the following article. Let’s look at this article carefully!
Capital is the main requirement that must be met when you want to start a business. Without sufficient capital, the pace of business may experience obstacles in the future. Therefore, it is necessary for you to know how to make a financial business loan at a bank.
Indeed, not all businesses require large sums of capital, and some do not require any at all. But, in this era of globalization, there are so many businesses that require considerable capital. This must be an important consideration for prospective business people who want to continue their business. On this occasion, let us discuss how to make a financial business loan at a bank. Here’s the review:
How to Make a Financial Business Loan in a Bank
1. Make the bank trust your business.
Before approving a loan application from its customer, the bank will usually consider several things related to the data of prospective borrowers. Therefore, the first step is to make sure you can convince the bank regarding the reason why you applied for the loan.
You can convince the bank by clearly detailing the business objectives. Explain to the bank that the business you are going to run has good prospects for the future.
Show your sincerity in connecting with the business so that the bank wants to give additional approval for your loan application. If possible, prepare a proposal in hardcopy form. This can increase the value of your sincerity in applying for a loan to do business.
2. Fulfill the Specific Requirements
The second thing you need to do to be able to make a money loan at a bank is to complete the various requirements that have been determined by the bank. The bank will check the completeness of its customers’ requirements very carefully and accurately.
If the requirements are deficient or not in accordance with the provisions provided by the bank, it is possible that the loan application will not be approved. Therefore, it is very important to complete the requirements proposed by the bank.
The requirements needed are usually in the form of personal client documents such as:
- financial statements,
- photocopy of the ID card,
- family card,
- pay slips or financial mutations, and
- other documents.
The next thing is that the bank will usually ask its customers to submit ownership papers for the goods they have as a form of guarantee. So, if you want to apply for a loan with collateral, you need to prepare letters of ownership of the goods you have. The collateral item is usually used to cover the loan funds lent to the customer if, during the loan repayment period, unwanted things happen.
But if you don’t have a guarantee to give the bank, you can choose a non-bank business loan, which is now widely provided by fintech. But you have to be careful, or at least you have to make sure your chosen fintech has good credibility and has been licensed and also supervised by the Financial Services Authority, such as Koinbisnis from Koinworks.
Koinbusiness from Koinworks is a business funding solution that allows you to get additional business capital ranging from IDR 5 million up to IDR 2 billion with low interest rates starting at 0.75 percent flat per month. All application processes will be done online; you only need to download the Koinworks application first.
3. Have a positive self-image.
The next thing you need to do is form a positive image of yourself. Make sure you are one of the people who deserve to be given a loan by the bank.
When you meet with the bank, you should not feel tense, because if you feel tense, it could be that the answer you give will not be delivere smoothly and will be full of doubts, so that your answer can be admitted as inconclusive by the bank. So, just act like a normal person so the bank will take into account why you want the loan.
The Benefits and Drawbacks of Applying for Bank Business Capital Credit
Like two sides of a coin, applying for credit at a bank to be use as business capital has privileges and disadvantages. Before you decide to go to the bank to apply for a loan, it’s a good idea to pay attention first to the profit and loss of borrowing business capital from the following banks.
Advantages of Borrowing Business Capital from a Bank
1. Offers a Variety of Conveniences
For customers who regularly deposit their money in a bank, it is possible that the bank will make it easier to apply for credit. The requirements need are also very easy because they are only personal documents and, of course, a good credit history.
2. There are different types of loans.
There are many loan products that can be access by customers, including micro-scale entrepreneurs, from KUR to KTA and Multipurpose Credit. Each loan product has its own pros and cons, so customers only need to figure out which one is best for their needs.
3. Banks do not interfere in business affairs that are carry out.
Here, although banks are capital lenders, they will in no way interfere in the business that is done with the money. The only thing that will be taken care of by the bank is the smoothness and discipline of the customer in the return of the credit use.
4. Interest rates are low.
In general, loan products for microbusinesses have a lower interest rate compare to other loan products that are consumptive.
5. Conducive Guarantee on the Part of the Bank
When borrowing funds from a bank, customers will usually be aske to hand over valuable assets as collateral. In this case, the bank will be fully responsible for the security of the guarantee.
Disadvantages of Borrowing Business Capital from a Bank
1. The process is complicate.
Not a few of the banks are still enforcing this convolute process. After they get the credit application form, they will check, do a survey on the business they are doing, come back to check, and do a few other annoying things.
2. Spend a lot of time
Because of the complicate and convolute process, it is not uncommon for customers to have to wait for days, let alone weeks, to be able to receive the desire funds.
Read more Financial Advidsor:
- 7 Business Financial Services You Should Be Aware Of
- Benefits of Business Financial Planning for Small Businesses
3. Priority to Customers Who Have Applied for a Loan
Although it is entirely a bank policy, in general, they choose customers. Customers who have already taken out loans and made their payments on time will find it easier to get more credit. This is because new customers usually have to be willing to follow a difficult process because it is seen as high risk.
4. If you fail to pay off the loan, the guarantee will belong to the bank.
When it comes to applying for credit at a bank, this is what most people are concerne about.They are afraid that if it turns out that the business open fails and the loan cannot be repaid, then they will have to give up the assets use as collateral to become the property of the bank.
Well, those are some reviews that discuss financial business loans; hopefully they are useful and can be used as a reference when lending to banks.