Do you want to develop your own business? It is not possible to ask for loan. It is not going to be easy, but if you can use the loan wisely, it is possible to your business fast growth. Here are smart ways to use small-business loan.

1. A Great Deal for Business Development

Some people using small-business loan to run their new business. Not currently recommended, because small-business rates is biggest, up above 1.5% per month. Use your small-business loan as business development money. For example, you need Rp200.000.000 to run your business, but you only have Rp150.000.000, you can ask bank to give another Rp50.000.000 through the small-business loan.

2. Developing Your Business

If you are using small-business loan to fund business you just started, the probability of bankruptcy in large part. Because you don’t have a pretty good blueprint of don’t’s for running a small business. It can’t or can be used to pay off the instalment. On the other words, use your small-business loan to develop your running business.

3. Compare Business Loan Rates with Profit

You should compare rates of your business loan with monthly profit. For example, you are selling a rice bowl for Rp40.000, with production cost Rp14.000 and another cost Rp10.000, it means you can get profit for Rp16.000 per bowl. On the other words, you earn 40% profit. If your profit bigger than business loan rate, about 1 – 1.5% per month, you can ask for small business loan.

4. Choosing Most Profitable Small-Business

It is better to choose most profitable small-business to pay off the instalment in time. You can choose which one will be profitable through the quick and easy process. Based on that idea you will find is it can reach a high level of sales or not to pay off the instalment.

5. Calculate an Instalment Loan Payment

Besides creating a smart financial plan, you should calculate an instalment loan payment, so your benefit not only use to pay off the instalment. You will need to make sure how long it takes to pay off the instalment, because you will pay in the long run and you need to make payment for production cost.