It is undeniable that many business people take capital loans as a first step to starting a business. Much was done so that the loan application was accepted.
Unfortunately, after the application was received and has been ‘liquid’, not a few who then use the loan, including multipurpose loans in vain. This can be caused by several things.
As a result, loan funds cannot be used properly and end in bankruptcy because debts that must be repaid continue to pile up because of the interest.
At least, there are 5 ways you can do so that the capital loan that has been received can be used optimally as it should and certainly will not be in vain. 5 ways here can be used as a reference for making plans with these loan funds. Take a look.
1. Using Loan Funds to Increase Productivity
Of course, this is the main thing that must be on the first list of what will be done with the loan funds. For example, if you have a business making meatballs, the loan funds can be used to buy a meat grinder or machine.
If the t-shirt business, the loan funds can be used to buy screen printing equipment or machines. If the textile business, the loan funds can be used to buy additional sewing machines. In this way, the loan funds will be very maximum and productive.
2. Separate Loan or Business Money with Personal Money
In relation to financial management, experts suggest that personal finance and business or business finance should be separated or not mixed. Thus, business finance will be easily controlled, including the amount of expenditure and revenue also clearly measured.
So, separate loan money into business money with personal money. If it is mixed, it will not only have a negative impact on your business but also fail to manage loan funds that have been provided by lenders or banks.
3. Provide Funds to Pay Installment Costs
When the loan funds have been used and you have seen positive developments in the business, the next step is to always provide funds that will be used to pay installments.
In fact, every existing income must be set aside to pay off debt. If not, then debt arrears because the amount of interest will continue to swell and loan funds previously obtained will not be productive.
Therefore, paying installments every month on time with a predetermined amount is not to be offered but as a top priority as an obligation.
4. Invest Profit Results
If the loan funds have been used and you can also save the profits, in addition to providing funds for installments, you should also provide funds for investment.?
Yes, invest profits to develop businesses so that loan funds are more productive. When the time comes, the amount of the insured debt can be paid off because you regularly pay, you can also invest in other business sectors from the loan funds that have been paid off.
5. Avoiding Uncertain Business
True, using loan funds that have a certain nature to be returned and with a certain amount of interest to be paid, it would be very inappropriate if the funds are used for businesses that do not have certainty about their potential.
Use certain collateral to pay off debt
What happens can be accumulated losses, loss of profit, loss of return of funds and loss if you use certain collateral to pay off debt. From here also, choosing the right business if using multipurpose credit as capital is a must.
From the above points, it is fitting for the loan to be used maximally to improve the business in accordance with the initial intention to borrow.
In addition, pay off the debts or loans because if not, the interest will not only accumulate but also strangle so that businesses that were expected to advance with the loan funds end up with unexpected losses. This must be considered before deciding to borrow; flower.
Leverage in encouraging your business
Of course, now you also understand that you will be able to maintain loan funds that are already in hand so that they are more leverage in encouraging your business.
You can also look for other references to consider when taking loan funds. It could be, actually, you do not need loan funds, but because of lack of reference, you decide to take it.
At Good Finance, online businesses can borrow up to USD 500 million without collateral with low interest ranging from 0.75% to 1.67% per month.