It is capital that you need to spend to buy or make your merchandise. This working capital may be issued every month, or any future orders.
For example, if your business enterprise where to eat, then the working capital you need is capital to buy groceries. If your business development efforts made craft goods, then your working capital is the money you spend to buy raw materials. If your business is photocopying services, yes capital or working capital loan you the money you spend to buy paper, ink, and so forth.
In principle, no working capital, you will not be able to complete your order or do not have the merchandise. Later, you might even not be able buyer because the goods are not there. That is the importance of working capital.
The last capital operating capital. Operating capital is capital that you need to spend to pay the monthly operating costs of your business. For example payment of salaries, monthly phone bills, electricity, water, even retribution.
Outposts in the capital or operating capital loan is in every business is generally quite similar. This is because, in principle, which is defined as operating capital is money that should you spend to pay for items outside of your business expenses directly. So, Capital Operations are usually paid on a monthly basis.
Well, how do you Mom? Easy, right? Now, you can calculate your own, right, equity or loan capital should you spend to start a business. Hopefully useful yes.
What is the initial investment capital? This is the kind of capital should you spend in the beginning, and is usually used for long-term. Examples of this capital is the building, equipment such as computers, vehicles, office furniture and other goods used for the long term.
If your business businesses repair shop, then your initial investment capital is the building, workshop tools, and other furnishings that are needed in the workshop. If your business stores, then your initial investment capital is a shelf, table, maybe even the cash register.
Typically, capital or capital loan is worth quite large as it is used for long-term. But the value of the Capital Investment will shrink from year to year even from month to month.
Reserve fund was used to deal with emergency conditions and can be invested to provide additional revenue for you.
Meanwhile, when the loan funds will be used only in part then step your debt is considered less effective. My advice extent necessary funds only, unless you have a plan to develop the loan proceeds earlier. If it had no intention to invest, look for an investment instrument that gives a higher income than the amount of interest on bank loans. So do not be put on deposit because you will lose big.
Pick a business activity or investment products that provide higher profits than interest on the loan. You can learn some business profile and business analysis in the mass media or through their own observations. Regarding education insurance, is actually a special investment fund set up to prepare for education. These investments are beneficial in the long term and can only be withdrawn on the due date or if there is risk of death.
Therefore, education insurance suitable for your new sister sat in junior high. The maturity date can be arranged in accordance with the schedule of college education, so when will the money liquid. But to be able to pursue an appropriate amount of education funding with an estimated cost of education is already calculated the premium, usually more expensive than if you invest yourself.
To choose a good education insurance premiums affordable price, you should go to an agent to ask for detailed information. Choose the insurance that has a high reputation, has many branches, length of experience, performance and level of good health. Several economic magazines often peeling performance rating and health insurance companies operating in Indonesia.
Borrow motifs in different communities. There are people who borrow for capital to open their business and Best Business. There are also people who borrowed for home renovations, buy new cars, buy computers and so forth. The difference is that last motif makes the bank and then create a wide range of loan products. Each product is created to fulfill different purposes. Basically, there are three kinds of credit products. Namely:
1. Business Loan
2. Consumer Credit
3. Multipurpose Loan
Business Loans are loans used to finance the business or the business cycle which can lead to something productive, such as trade, domestic industry, business consulting services, and deodorized. If you have a business that its prospects look bright enough, you can come to the bank and apply for loans can get funding for your business.
Meanwhile, Consumer Loans are loans used to buy things that are consumptive, such as buying a home or private vehicle. Two consumer credit which is usually quite popular mortgage (mortgages) and Auto Loans. Of course, because that money will be used by customers for the purpose of consumption, the risk for the bank that customers can not afford to repay the loan will be larger so that in general the interest rate charged to customers for consumption credit would be greater than the mortgage interest for purposes of business.
Often do we ask people who have opened businesses: “How does capital or loan capital that you need first when you open a business that now?”. Answers that often arises is: “… several million dollars, or a few dozen million dollars ….” right right? Principally, there are numbers that come out. But, if you are asked like that, not necessarily you can answer. Because usually when we want to run a business, many of us who do not know how to calculate it.
Well, this time I will share a secret with you about how to calculate the amount of capital or loan capital that you need if you want to start a business.
In principle, in running the business, there are only 3 types of capital you’ll spend:
1. First Capital Investment
2. Working Capital
3. Operating Capital
There are several things to consider if you think to borrow money. Ideally, you should be able to:
• Know a variety of sources and institutions that provide loans
• Assess the loan terms
• Know how to calculate the cost of credit
• Define your own debt limit
Where can you borrow?
Most consumer credit comes from banks, savings and loan institutions, credit unions, credit card companies. There are also people who borrow from family or others who are a source of credit (not) good. Lenders who do not have a fixed place of business usually offer loans with higher interest rates than the legal interest rate.
To anyone you borrow, make sure you get a signed contract, and READ THE FINE PRINTED TEXT including the terms and financial costing.
How Much is Needed?
Before taking a loan, think carefully how much you need. Usually you have to pay a deposit of about 20% to 30% of total loans, depending on the type and amount of loans, the experience of your other debts, and the value of your credibility. In addition, you need to allocate funds for monthly payments and interest. It also depends on your loan term and interest charged by financial institutions. Finally, you also have to allocate funds for insurance and other taxes, such as the value of the building. All this depends on the type of loan that you’re proposing.
there is also a Multipurpose Loan. As written in his name, Multipurpose Loan is a loan that could be used for any purpose can be used for consumption or to start new businesses such as printing, business and trade Sworn Translator. Well, one of the versatile loan products are often marketed Loan. Collateral is another name of security. Lo, do not borrow money from banks usually have to use the warranty?
Yes. In general, if you want to get credit, you have to pledge one of your own property to the bank so that if you are not able to repay the loan, the bank will confiscate your property is guaranteed. Surely it must guarantee the value of goods greater than or at least be equal to the value of money you borrow. But on Loan product, you do not have to submit items to the bank guarantee. You are only required to have a certain amount of income every month and deliver a series of evidence that could indicate that you are indeed correct for the amount of income required.
Of course, for the banks concerned, the risk of default from the customer will become even greater because the bank has no collateral from you and will oversee the bank is also not used to what the money they lend to you that (the numbers we will discuss upcoming special about one of the loans without collateral product is now being heavily marketed in the community).
In a mortgage, if the bank were to keep the mortgaged property and sell it to pay the debt, the customer would still have to answer for the amount of money that would not be covered, if necessary. In recent years, with the steady increase in housing prices experienced this situation has been unusual. If it was time to seize the house to retrieve the loan, the bank had a house that had gained a lot of money and could be auctioned to recover the money. In fact, estate agents used to reassure those who ventured to buy a house and not had all along, assuring them home soon so the price would rise, if passed in a hurry, they could sell it to pay the debt with the bank and still earn money.
In fact, for quite a few years, this has happened but now the situation has changed dramatically. As housing and do not rise in price, if you can not pay the monthly mortgage, even selling the house does not always get enough to cancel the debt. Some owners are forced to sell your home worth less than the buying, to remove at least part of the mortgage but still have a debt to the bank. This is one reason why banks have started to limit the amount of mortgages granted, which reached 80% of the value of the house. Offset “, then ask for a personal loan?
The answer is no: a personal loan is the ideal alternative to the mortgage. Mortgage loans are referenced in most cases the Euribor, and the payment of interest will depend on the value reaches this indicator. Euribor is an acronym for European Interbank Offered Rate, European interbank interest rate at which banks lend money to each other. The European Banking Federation is responsible for calculating its value by the average prices of 64 major European banks. The Euribor is calculated on a day, week, month or year. Which is used to calculate the interest of many of the loans in Spain which is referenced to a year.