hero

investment credit that can help wider business expansion

27-June-2024

Finance

Doing business can be started by using investment credit services. In general, investment credit is a service that helps finance businesses both small and large scale.

This type of credit is an alternative type of bank credit, but is still officially supervised by banks in Indonesia.

Basically, investment credit is a government program that aims to develop the economy both in the region and in Indonesia. Providing investment credit to entrepreneurs can have an impact on creating job opportunities so that it can help reduce unemployment.

In general, investment credit seems quite profitable for the country and its business people, right?

Interested in applying for investment credit for business expansion? Understand more about investment credit first through this article!

Definition of Investment Credit

Investment credit is debt given to customers to expand their business. The debt repayment system can also be chosen based on a term agreement between customers who have businesses and the lender.

In Indonesia, the tenors given by banks are quite varied but generally 10-15 years. However, if you cannot pay it off within that time period, there is a 4 year deadline.

This type of credit is used to buy necessities or finance needs when building a business. Apart from that, investment credit can be applied for for various types of businesses, small and large scale.

Investment Credit Function

In general, the function of investment credit is to provide business capital for both individual businesses and institutions. The purpose of investment credit is provided so that business owners can develop their business in accordance with predetermined achievements.

In the financial sphere, investment credit is useful for moving the wheels of the country's economy and improving it. With the capital assistance provided to business owners, many businesses can develop.

It doesn't stop there, business development in the regions can have an impact on creating more job opportunities, thereby helping the government reduce unemployment.

Characteristics of Investment Credit

After understanding what investment credit is, of course there is a difference between this type of credit and others. The following are characteristics of healthy and official investment credit for you to consider:

Supervised by the Central Bank

For your information, investment credit is a government program so activities are supervised by the central bank. The central bank in Indonesia is Bank Indonesia with the function of supervising investment credit activities.

It doesn't stop there, the central bank's task is also to provide capital and assist business development in line with the function of credit.

Classified as a Government Program

As we know, investment credit is a government program supervised by the central bank. The large benefits provided make investment credit a target for parties participating in various government business programs.

Productive

Investment credit is productive. This is because the credit provided can be used to purchase inventory for business continuity and also business production costs. An example of increasing productivity is by adding tools or improvements.

With this, of course the business capital provided can encourage movement in the business's finances.

Example of Investment Credit

Investment credit is indeed interesting for those of you who have a business, either an individual or an institution. Apart from having expansion benefits, you also help the regional or government economy as long as you make payments on time.

However, what can investment credit references be used for? The following is an example of investment credit that you can consider when you want to apply!

Procurement of Business Equipment Inventory

For businesses that offer products, once they have their own factory, investment credit can be used. One of the things that can be done with investment credit facilities is purchasing business inventory.

If it is a factory, an example is the purchase of production machines. The purchase of business inventory equipment could be a component covered by the investment credit provider bank.

Building Renovation

Already have a business building, but need to renovate it to make it more viable? Investment credit can also provide costs for renovating buildings used for your business.

Examples of business buildings that can be renovated are head offices, factories or warehouses which are owned by individual businesses or institutions.

Purchase of New Buildings for Business

Have an adequate business building, but during expansion do you need a new building for production? Investment credit can help you to buy a new building for your production site.

Building a factory requires a lot of money, so investment credit can be an official financial service that can help in expanding your business.

This investment credit service provided by the government is indeed profitable for business people, both small and large scale. However, because applying for credit also has various requirements, make sure before applying you know all the requirements.

Apart from the financial matters that investment credit can help with in business expansion, you also need to equip yourself with knowledge before expanding. Want to deepen your business knowledge in the fields of supply chain, resources and marketing but don't have much time?

You can choose prasmul-eli which has several short program options.

For you business people who want to return to studying various sciences, Prasmul-eli now provides a variety of short program options with a learning duration of only 1-3 days. The program also presents facilitators who are experts in their fields so you can gain new business insights and tricks.
What are you waiting for, contact Prasmul-Eli to find out more about the program via this link!

Find this article insightful? Share it with your network!

INSIGHT AND KNOWLEDGE

Recommendation Articles

calendar

31-May-2022

tag

The Difference between Cash Flow and Profit in Operating a Business

The difference between cash flow and profit can be identified from the source of income. The understanding of these two terms greatly influences the making of important decisions regarding business performance.

Selengkapnya

article
calendar

26-June-2024

tag

Marketing

Why is Email Marketing Important? Functions, Types and How to Make Them

Email marketing is a promotional tool that has been proven to be effective. Read this article so that email marketing optimization for your business becomes more successful!

Selengkapnya

article
calendar

02-August-2024

tag

Finance

What is a Financial Report, Meaning, Types, and Importance for Business

Understanding financial reports is crucial in business. Learn the importance of financial reports by reading the article below!

Selengkapnya

article
calendar

15-August-2022

tag

Operational

Feasibility Study in Project Management

Feasibility studies are carried out to measure the level of products to be marketed. To determine its feasibility, a study was carried out looking at technical, economic, legal, operational and time aspects.

Selengkapnya

article
calendar

05-October-2022

tag

Strategic

Challenges Faced by Today's Entrepreneurs

Both internal and external factors can be challenges for entrepreneurs. However, you will avoid problems if you are able to allocate resources well.

Selengkapnya

article
calendar

14-December-2023

tag

Leadership

The Importance of Delegation? and When Should We Do It?

In essence, delegating tasks to subordinates apart from having the aim of making work easier, will also provide opportunities for subordinates to become more developed and more responsible.

Selengkapnya

article
calendar

07-July-2022

tag

Human Resource

Understanding the Psychology Behind Employees Who Resign

Losing potential employees of course has a significant impact on the company, because it is not uncommon for employees to have rare knowledge and skills

Selengkapnya

article
calendar

06-November-2024

tag

Innovation

Help Work Easier, Get to Know the Effective Mind Mapping Method

Mind mapping is a well-known thinking technique in the educational and professional world. Find out more about it in the following article!

Selengkapnya

article
calendar

25-July-2022

tag

Soft Skill

Developing Your Potential While Not Working

To be more productive when you are not working, the right way to build your skills is by volunteering, freelancing, contract work and networking.

Selengkapnya

article
calendar

07-November-2022

tag

Assessment

What is assessment, how to measure it, and its benefit

Assessment can identify strengths and weaknesses from a talent as a consideration in promotion or recruitment

Selengkapnya

article