What Makes It Difficult For A Business To Get Funding For Business Capital?

Being a businessman may seem fun. You don't have to work, you work more freely, and your income also looks tempting.

Especially if we look at successful business people, it seems that they just sit quietly at home and the money continues to flow into their accounts.

Unfortunately, building a business and running it is not easy. Many things must be prepared so that later the business can run well. Not to mention there will be many obstacles when opening a business and running it.

One of the problems that are often encountered by business actors is the problem of capital. To solve the problem, taking funding is the easiest solution.

The problem is, some business people, especially small and medium-sized businesses, often find it difficult to get a capital loan.

What do you think makes it difficult for them to get a capital loan?

Incomplete File Requirements

One of the reasons it is difficult for business actors to get a loan is incomplete file requirements. This often happens because some business actors do not pay attention to the requirements requested by the lender.

Moreover, often every bank or financial company asks for different file requirements. This makes some business actors lazy to apply for funding because they have to prepare files several times, adjusting the requirements of each bank.

Therefore, it is better for us as business actors to be careful in preparing the requirements file before applying for funding to a particular bank. Such as preparing a business license, proposal, address, NPWP, and so on.

Bad History of Business Actors

As a lender, you certainly can't be careless in providing funding to a business. They must research the background of the borrowers so that the capital lent from them can provide maximum profit in the future.

One of the things they usually check is the business actor's loan history. If it turns out that the business actor has failed to pay, or still has credit problems, the bank or funding company will not provide loans easily.

This is very reasonable, considering that they as borrowers must be able to minimize the risk of defaulting on their customers which can endanger their own company's finances.

Inappropriate Business Criteria

As we mentioned earlier, each company has its terms and conditions. Some funding companies only want to provide loans to businesses in certain sectors.

Some borrowers also have certain criteria such as the business has been running for 5 years or more. Usually, certain criteria are used as requirements by banks and financial companies to ensure that the business actors they provide funding are truly by their vision and mission.

 In addition, these criteria are made so that not just anyone can apply for funding, and reduce various funding risks in the future.

Violation of the Law

Often banks have strict provisions, especially those relating to law. And one of the things that makes it difficult for a business to get funding is a violation of the law of a business that makes the business blacklisted.

The violation could be because the business is engaged in an illegal business sector, such as illegal trade, gambling, or various businesses related to immoral acts.

This does need to be strictly enforced because if not, funding companies could be affected if their customers get into legal trouble in the future.

Inappropriate Credit Guarantee

Some borrowing companies will ask their customers for certain guarantees. If the value of the guarantee does not match, the funding application will be rejected.

The general standards applied are: the loan value is not more than 80% of the value of the collateral submitted. If the value of the guarantee is below the predetermined standard, the business will certainly have difficulty getting funding.

Less Promising Proposal Presentation

Making a funding proposal is one of the most decisive factors. The proposal must be made neatly and professionally so that the lender is interested and finally willing to provide funding.

With a good proposal, lenders can find out how big the potential of our business is. Make a detailed proposal, and display accurate data that strengthens the content of the proposal.

In addition, the presentation must also be done as well as possible. Do not let our proposals be rejected just because our presentations are not convincing, or seem too arrogant which will give them a bad impression.

Those are some things that must be avoided as a businessman if you want to get access to capital to develop your business. If you want to grow your business and get access to funding, then ethis.co.id can be the solution. Get access to funding for your business up to 2 Billion Rupiah!