Is Obtaining Business Capital Must be from Debt? – Some say that if you want to run a business, a good way to get capital is by going into debt. Coupled with the development of fast liquid and easy online loan applications which have developed quite a bit in recent years, making it easier for prospective business people to get productive loans for business capital.

However, there are also people who have gotten capital by way of debt, but the business collapses and leaves a lot of debt without knowing how to pay off the credit.

Then, is using savings money for business capital would be better, because it can avoid debt bondage? The answer is not necessarily correct. Therefore, it’s better to consider this before you start deciding which way is best to get venture capital.

1. Profit & loss of doing business with debt

The first thing you feel when you get credit from a bank or from a quick and easy online loan is that you don’t have to bother and wait a long time to save up to get venture capital. Not to mention if you wait a long time to save, it could be that the business you’ve been waiting for will become a discourse because it’s stale.

In addition, with credit every month, you can be more enthusiastic about achieving sales targets. So, you will care more about the business you are running and will continue to change for the better so that your income remains stable and debts can be paid

Talking about debt losses, this will happen if you don’t manage your debt and business properly. Because debt remains a burden that you have to pay up to a predetermined period of time. So, if you are not good at seeing opportunities, racking your brains to change strategies, can’t target the market properly, debt will only become a burden.

Apart from that, you also cannot enjoy the full benefits right away, because you need to pay the installments first until it is paid off within a period of several years and then you can enjoy the desired results.

2. Profit & loss of doing business without debt

It is undeniable that if business capital is 100% from personal money or savings, the business will be safer because there is no debt or loan to the bank, so you don’t have to bother setting aside a certain amount of money from each profit to give as a return on principal and interest to the bank.

In addition, your potential profit will be even greater because there are no dependents that must be paid to financial institutions every month.

But behind the benefits that you can feel, it turns out that the risks are also quite large. If it turns out that the business you are running has failed and you don’t have enough reserve funds to support the business, the business might stop and the business you are already in can go out of business.

In fact, it’s the same as the loss of debt, this will happen if you don’t manage your debt and business properly.

3. Better Combine The Two

Using own capital or borrowing through a bank is a very strategic decision for future business development. The function of credit is as a lever, in accordance with the nature of the lever, it is only natural that the business wheel can rotate faster.

However, it would be better if you combined the two methods. You can take advantage of fast liquid and easy online loans like Kredivo to serve as a reserve fund if your business suddenly falteres. This is because the cash loan service from Kredivo, which has a low interest rate of 2.6% per month, limits of up to IDR 30 million and tenors ranging from 1.3 to 6 months, can be utilized properly.


In conclusion, business success is all in your hands, not from the hands of other parties, including financial institutions that can provide you with loans for business capital. Have a nice business!

Hello, my name is Laura Keyhl usually called Laura. I am a professional writer on several sites, one of which is this blog.

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