Currently, access to loan money for various needs, such as business capital is very easy. Especially with the presence of online loan services (pinjol) from fintech lending.
Online loan services are now the prima donna of many people from various circles, including entrepreneurs. How not, in addition to an easy online process, the submission requirement is only in the form of an ID card.
After that, online loans can be disbursed immediately. It doesn't take long. Generally, the process only takes 24 hours. No wonder if online loans become 'friends' of entrepreneurs who need quick capital or urgent funds for their business needs.
Online loans do have a series of great benefits for entrepreneurs. One of them is making the money flow better for your business. loanplususa.com
This is called productive debt. Debt that is used for something that produces, such as a business or venture. If the business runs smoothly, even grows, you can print big income so you can pay interest on online loans.
Increase cash flow
Cash flow relates to income and expenses in a certain period of time. How much money is coming in and going out will be recorded in a report.
If income is greater than expenses, it means that your cash flow is good or positive. Vice versa.
Cash flow indicates how well your business operations are running. So, it is very important to maintain and increase cash flow in business, especially during the pandemic. Where many businesses have been affected by Covid-19.
In addition to increasing sales and cutting operational expenses, a safe way to increase cash flow in your business is to apply for an online loan.
With debt, business capital increases so that it can help your business last a long time and be profitable. But remember, apply for an online loan by considering, and calculating the risks first, such as loan interest, debt ratios, and others.
Adding assets or upgrading assets
You can use online loans for businesses to increase assets. Not only productive debt, but the assets to be purchased can also generate more money.
For example, you have a convection business. Apply for an online loan of IDR 20 million to buy 4 sewing machines. Tenor of 12 months with 12% interest per month. Installments per month around Rp. 1.9 million.
With the sewing machine, production capacity increased from 1,000 pieces to 7,000 pieces of clothes per month or 85.7%. Turnover after production increased by Rp 37 million per month.
Monthly operational costs of Rp. 25 million. So that the profit generated is Rp. 12 million. Then it is used to pay debt installments of Rp. 1.9 million, then your business profit is Rp. 10.1 million.
From these profits, you can turn them around to buy new assets for greater business development. Or rejuvenating old assets because they are old and damaged.
Save the company and employees
Business is not always smooth. Many trials hit, such as experiencing financial problems. For example, due to PPKM policies, economic recession, or errors in managing cash flow.
The company's finances are in critical condition. Need additional or injection of funds from online loans to save the company from the risk of bankruptcy, such as paying operational costs.
In addition, this debt can also be used to pay employee salaries. To avoid layoffs of employees. However, employees are an important asset of the company. They have been loyal and have contributed to the advancement of the company for many years.
Business expansion
Is your business growing? Do not do it half-heartedly just because you have no capital or lack of funds.
Online loans can help you get out of this problem. You can flap your business wings higher or expand, such as opening new branches, exploring exports, or starting to go international.
With business expansion, you can work on new markets faster than competitors. The business is growing rapidly and has the opportunity to reap greater profits.
Business emergency fund
In business, there are ups and downs. Sometimes profit, sometimes loss. This is where the importance of an emergency fund for businesses.
Reserve money that can be used when the business loses or expenses are greater than income. Also used when the business does not go according to the original plan.
Ideally a business emergency fund that needs to be prepared is the amount of expenses for 6-12 months. Business emergency funds can be obtained from online loans.
Remember, make sure you are able to pay the installments every month. However, if the business turns out to be not profitable at all, the emergency fund can be disbursed to pay off the principal and interest debt.
