Want to open a business with no capital? You can apply for business credit. Check out the following people’s business credit ratings and how to apply here!
Capital is one of the things that can make entrepreneurs dizzy because a lack of capital can make their business run smoothly. Whether it’s a new venture or a new venture, we will still need less capital. In order to get capital, entrepreneurs are looking for investors who are willing to provide venture capital or lend capital to specific banks or financial institutions. The first option may sound difficult to obtain, so the second option is more.
Business capital loans
Or commonly referred to as people’s business credit (KUR) is a working capital financing prepared and provided by the government for the UMKM (Secondary Micro Business) specialty field. The purpose of these people’s business credit is to enable small and medium-sized entrepreneurs to easily lend. In addition, with the credit of the people, it is hoped that Indonesia’s small and medium-sized enterprises can grow so that the people’s economy can thrive.
The amount of credit awarded varies depending on the institution and the provider bank. They usually lend up to $ 50 million on average. Initially, people’s business credit requires you to provide a guarantee or loan if you wish to lend. But since 2015, the Ministry of Cooperation and SMEs have launched the BRI People’s Business Credit Program without any guarantees you have to provide. Although there has been a government ruling, it is still a matter of securitization depending on the institutions and banks of the credit line.
Three Schemes for the Distribution of People’s Business Credit
People’s business credit has three mechanisms for channeling schemes that you need to know, namely, direct schemes, indirect schemes with executing patterns, and indirect schemes with channeling patterns. For more details, you can see the explanation below:
First there is a direct scheme which is a people’s credit loan provided directly by a bank or financial institution. So during the application process without passing through the intermediary.
Indirect Schema with Executing Pattern
For indirect schemes with executing patterns, loans obtained must involve linkage agencies as partners that will lend public business credit. In the future, a linkage agency will lend unsecured public business loans to banks or financial institutions. Typically the parties acting as linkage institutions are secondary cooperatives, primary cooperatives, lending cooperatives, financial institutions non- banks, business groups, and micro-financial institutions.
Indirect Schema with Channeling Pattern
Finally there is an indirect scheme with the actual channeling pattern that is very similar to the executing pattern since they both use the linkage agency. It is only in the pattern of executing that the linkage agency becomes a partner. While the linkage agency on channeling is acting as an agent (per person) that will help entrepreneurs to lend the people credit.
Terms of Applying for People’s Business Credit
To apply for people’s credit, you must first meet the requirements. So what are the requirements and documents that need to be prepared?
- Photo ID (Citizenship Card)
- KK (Family Card) Copy
- A photocopy of a marriage book (for married couples)
- NPWP (Taxpayer Identification Number) for a loan of up to $ 25 million
- SIUP (Business License) or letter of legality of business from a village or local village
- Business proposal (for which the new venture will stand)
- Newspaper accounts or photocopies of savings books for the past three months
- Fit 3 × 4 personal photos
How to Apply for People’s Business Credit
It’s not difficult to get people’s credit. However, you should still know the steps to avoid getting confused when applying later. Check out how to apply below:
- Prepare the required document files and make sure your business includes productive endeavors such as crafts, food and beverage businesses and beauty businesses.
- Once the document file has been prepared, you can go to a government-designated credit card agency or bank. Ask first, how are the procedures for filing and disbursing the funds due to the different credit card issuers of the people, then the systems used are different.
- Once you know the procedure and the process, you can apply for a business credit immediately as the requirements document has been brought and completed.
- The bank will then conduct a preliminary survey of your business to determine whether your business is eligible for a loan. If your business qualifies and is eligible for a loan, then you can get people’s business credit.
The survey and disbursement process typically take 3-14 business days. If the requirements document is complete and the business credit application queue is not long, then it can take less than 3 days.