Most of the problems young businesses is the difficulty of obtaining capital from banks. Actually, it is nothing to worry if you can convince the bank and always trustworthy. You can do this by continuing to maintain the integrity of the banks that provide capital must be maintained. Because if it ever failed at a bank in the capital will be difficult to apply for other banks.
Typically, the bank has a special division in the finance SME and new venture. However, banks can not finance a new business running less than two years.
In general, banks are implementing the prudential banking principles aimed at securing funds to be disbursed as loans to prospective borrowers to get back on schedule and predetermined nominal.
There are many factors on which the banks to assess the feasibility of prospective borrowers are grouped into five major and called 5C.
Personal touch with the debtor or the debtor’s decision makers to form a business entity. Character assessment is closely related to the reputation of borrowers in the community and his track record among businessmen or parties often establish relationships with them, whether it includes a prospective borrower can be trusted or not and so forth.
Another thing that is also considered the bank to the category of character is a commitment that built, business records such as suppliers, customers and banking history. Banks will look at whether the business debtor has a history of troubled loans or not.
Associated with the debtor’s ability to provide their own capital in a project or business. Banks can not provide 100 percent financing to businesses that make capital. Debtor must have a self-financing or equity capital that can be derived from paid-in capital or accumulated profits into capital.
Capital include analyzing the composition of ownership, who is the most dominant and who steward the capital. This is considered important because by knowing someone who controls the capital, the bank can figure out how to run a business continuity in the future.
Related to the capacity or the ability of borrowers to manage and develop their business so that he is able to repay the loan in accordance with the schedule and the amount has been determined.
Capacity here is also related to the capacity of business such as sales revenue, cost structure, cash flow, the velocity of the bill, the cost to income and so forth.
Related to the ability of borrowers in the face of changing environmental conditions, both concerning the condition of the economy and the social and political conditions, in which the business or project is located.
This condition is also associated with licensing. For example, for the micro, the permit can be derived from the village or district, and so on.
Dealing with the assurance that the source of financing keystone in the repayment of the financed project or business. Divided into two types of warranties that guarantee tangible and intangible. Warranty intangibles such equipment, machinery, vehicles, buildings, land and so on, while the intangible include personal or corporate guarantees and so on.