Mistakes in managing loans are one of the obstacles that must be faced when you are starting your own business.
Business loans play an important role in long-term business continuity and realizing the brilliant ideas you have.
However, there are times when we are not careful in reading situations and conditions. This can have an impact on the emergence of errors in managing business loans. What are the common mistakes made? Come on, look at the following reviews and avoid the various mistakes that might occur when your business loan is disbursed.
7 Mistakes in Managing Loans for Business Purposes
There are at least 7 common mistakes that often occur when managing business loans. Make sure you don't make the following 7 mistakes.
1. Merging Personal and Business Accounts
One of the mistakes in managing loans that entrepreneurs commonly make is combining personal and business accounts. This is not recommended because you will find it difficult to know the advantages and disadvantages you get.
On the other hand, merging accounts can result in a lot of business loan funds that you get unintentionally used for personal needs.
Therefore, it is appropriate if personal and business accounts are separated. Later you can find out the profits and losses you get per month, and it's easier to manage how much capital you need to grow your business.
2. Less Detailed Bookkeeping
Setting up less detailed bookkeeping can also lead to mistakes in managing your business capital loan.
Seeing the history of income and expenses only from a bank account is not enough. Detailed recording of income and expenses can be used as a reference in making financial decisions, including determining whether the business capital you already have is sufficient or not.
Accounting is the right science to be used as a reference in making financial decisions for a business. With sufficient knowledge related to bookkeeping, you can avoid negligence in using business loans.
3. Hiring Too Many Employees
Allocating funds to hire people who are not needed is also bad for managing your capital.
Make sure that you consider carefully before allocating your capital to hire new employees so that there are no mistakes in managing loans.
Some factors to consider include efficiency, customers, and new equipment to work more efficiently and effectively.
4. Bad Debt Returns
One alternative that can be taken in increasing business capital is to apply for a fast liquid loan from a trusted finance company.
Unfortunately, many business owners just apply for loans without looking at their financial condition, so they experience difficulties when paying their loan installments. Therefore, make sure that your financial condition and business are stable towards development, so that you can apply for a loan according to your repayment ability and avoid mistakes in managing loans.
Also Read: 7 Common Loan Myths Heard in Society
5. Initial Business Credit is Too Large
The next mistake in managing loans that some entrepreneurs make is using loan funds for initial capital that is too large. For example, directly using large funds to build a large restaurant. In fact, you can start small first, such as opening a small catering business.
If you immediately use loan funds for large initial capital, the risk of bad credit is even greater. Because there are many unexpected things when you first set up a business. Uncertain income and profits are one of them.
Also Read: Non-Performing Loan: Definition, Causes, and How to Overcome
6. Don't Have an Emergency Fund
The next most common mistake in managing loans is not setting aside a portion of your income for an emergency fund. In fact, an emergency fund is important to finance unexpected needs. For example work accidents, operational compensation, and others.
Regarding the previous tips, you must have good financial management before applying for a business capital loan. Including having an emergency fund that can be disbursed when needed.
Also Read: Emergency Fund: Definition, Benefits, and Tips for Preparing the Fund
7. Giving Too Many Promos
The final mistake in using a business loan is to use most of the loan funds for large-scale promotions without careful consideration. As a result, you have to bear losses and have difficulty paying business credit.
Give promos or discounts according to your capabilities and operational budget. So, your business can run without having to make mistakes in managing loans.
Also Read: Ways to Use Fast Loans for Business Promotion Activities
How to Get Business Capital Easily
When you intend to start a business, of course, you need capital so that the business you are running can grow and run according to plan.
However, sometimes the capital that is owned is not sufficient, so the alternative is to apply for a business capital loan.
Applying for a business capital loan can provide many benefits for you. In addition to helping your business grow, and smooth business cash flow, you can also realize business strategies more quickly.
That way, your business operations can be more efficient and bring greater profits to your business.
You can apply for your business capital at BFI Finance to get fast liquid and reliable loans for additional capital for your business.
Simply by pledging the vehicle BPKB or house certificate, you can get the funds needed to support your business needs or urgent money loans.
Image Source: Freepik/pe_jo
Of course, before applying for a loan, it's a good idea to learn in advance what a business capital loan is. So, you can get funds according to your needs and not experience problems in the loan payment process. Some business loan guidelines that you need to know include:
1. Determine Loan Capital
Calculate your loan through a loan simulation on the official BFI Finance website. This will help you determine the tenor and amount of installments that suit your financial condition.
2. Fulfill Document Requirements
Make sure that your documents are complete according to the requirements such as KTP, KK, salary slips, proof of asset ownership, and so on.
3. Meet the 5C Principles
The 5C Principles are useful for measuring your credit score and ability to pay. 5C includes Character (Integrity), Capacity (Cash Flow to Pay Debt), Capital (Principal Wealth), Collateral (Assets), and Conditions (Overall Business). This can be known through BI Checking or OJK SLIK.
For more information about loans, you can check the following link.
Loan Information Car BPKB Guarantee
Disbursement of funds up to 85% of the vehicle value and a tenor of up to 3 years.
Loan Information BPKB Motor Guarantee
Loan funds with a fast process and a maximum tenor of up to 18 months.
Loan Information Home Certificate Guarantee
Low interest starts from 0.9% with a long tenor of up to 48 months.
Those are 7 mistakes in managing loans that are commonly made by business owners as well as easy ways to get business capital. Hopefully, you can avoid the mistakes above and manage your business capital more effectively, OK!
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