Business Capital Funding From Majoo Without Repot

Illustration. (Photo: Unsplash)

JAKARTA - When a business develops, of course, it requires a large amount of additional capital. So that many MSME business actors are thinking hard about getting funding. So it's natural that now many financial institutions provide capital loans to develop their business.

So, if you experience business capital problems then you can apply for a loan to majoo Indonesia. Currently, majoo has a loan service, namely majoo Capital, which is licensed and supervised by financial service institutions.

That way, once you can get various opportunities to apply for a business loan with a fast process and not a hassle. For example, loan applications are processed quickly, between 2 and 14 days.

The amount of the loan you will get is also unmitigated, you know. You can also get loans of up to 2 billion with interest of around 6% to 18%. Therefore, you can apply for a loan amount based on your business needs.

Well, before we discuss further funding, then it would be nice if you know the understanding of funding, types of funding and funding sources for your business capital.

Business funding is a way to obtain the necessary funds both as capital and as additional funds to work on a project, program or portfolio allocated for the operations of a company, organization or business.

Meanwhile, corporate funding is an investment from a lender to a company. Sometimes we also call it operating income. In general, there are two types of funds: equity (share) and debt.

Equity investors (shares) are referred to as stock investors, shareholders, or business owners. Meanwhile, debt can come from various sources, ranging from bank loans, corporate financing, short term notes or commercial paper. Therefore, lenders can use different names such as lenders, investors, depositors or investors.

Funding is a fuel that keeps businesses running. Businesses require money for various purposes, including: 1. Start a new business, such as renting an office, new equipment, and paying for advertising. 2. Running a business, for example to meet short-term financial needs or to support business research. 3. Expand business, for example by adding new branches, buying production machines or building new factories.

Why is it so difficult for new companies to get funding? Compared to established companies, it is more difficult for new businesses to raise money. Their risk is high because they have no performance track record and business success. This makes lenders reluctant to lend their money.

On the other hand, investors want their money to grow. They compare risks and returns before deciding to lend money. When they realize that their business is too risky, they hesitate to invest.

And, if they want to pay big risk, they want a big return or interest. The new business has a high risk of failure as they have few customers. They rely on external funding to run their business, rather than selling products.

They have less money because they only have a few subscribers. In addition, they may face competition pressure from other established companies.

Companies can generate revenue in various ways. New businesses often rely on investment from owners. Due to the high risk, it may be difficult for them to get money from stock exchanges or banks.

In general, we can classify types of business income in different ways. First, we can divide it based on time.

1. Short-Term Loan

In most cases, companies will pay off their debts within one year or less. Examples are investment, bank loans and commercial securities.

2. Medium and long-term income

Usually due is two years or more. Intermediate and long-term investment examples are short-term debt securities, corporate bonds, and stocks. In addition, we can control money according to the source, where there is internal funding and external funding.

# Internal Funding

The funding comes from internal affairs, namely from savings. From the recorded total net profit, the company distributes part of the dividend to shareholders. Others are stored as savings.

Entrepreneurs can use their savings to meet their operational needs or support business expansion.

# External Funding

This funding comes from other people, not from equity or debt capital. The company can raise money in the capital market by issuing bonds or shares, or companies can borrow money from banks.

External financing is usually for expansion, such as building a new factory or acquiring other businesses. Such corporate actions usually require a lot of money, more than investable.

External funds cover various types, including:

1. Company receivables sell their invoices to financial institutions such as financial institutions. They do it to make money quickly.

2. Disposal facilities

The bank allows businesses to withdraw more money than is available in its bank accounts to an agreed extent.

3. Corporate Bonds

Corporate bonds are long-term debt securities, generally traded on the capital market and with a higher nominal value than medium-term debt securities. These instruments can take different forms, bonds with fixed interest rates, bonds with floating interest rates, coupon-free loans, bonds that can be tied up, bonds that can be called up, bonds for conversion, debt securities, senior bonds or bonds of subordination.

4. Hipotek

Hipotek is a long-term bank loan where they usually take property as collateral to the bank.

5. Grant

This funding usually comes from charities or governments to help companies achieve certain goals such as environmentally friendly or creating jobs in certain areas.

6. Crwonfunding

The term crownfunding is usually used to raise money in religious or social activities. Crwonfunding is a funding originating from a large number of people, each giving a small amount of money.

This type of money is usually done through websites or social media. This financial risk is private equity funds and is usually given to new businesses or startups. Private equity companies collect money from investors, investment banks, or other financial institutions.

7. Ventura Capital

Venture capital funding is funding from a giant private company that provides financial capital to startup companies. This venture capital often raises finances with other large companies, or high-income individuals, investment banks, or other financial institutions.

So that the finances are managed and channeled to increase the capital of startup companies that are usually engaged in technology.

Those are some types of business capital funding that you can apply through majoo Indonesia to quickly develop your business and not difficult.