Owning Your Own Business

There is a sense of pride when you can produce something of which for which you have strived. But be complacent when you run a business that had appeared to be growing. The growth of a business field should be followed by efforts to develop a business that can be reached by opening branches in other places, expanding the business and adding products or services to your offer. To realise that goal, of course, necessary additional capital needs to be pursued through loans from financial institutions (banks).


One of the bank loan products that you can use to develop the business is the Working Capital Loan (WCL) and services have been offered by a number of leading banks, both private and government-owned with the terms and conditions that must be met by the borrower. KMK is one of the forms of loans/working capital loans in foreign currency and dollars disbursed to meet working capital requirements within a maximum of 1 year and can be extended. Several advantages when compared with the KMK other credits are:


  • You can draw or withdraw funds when you need it through a bank loan account.
  • Working capital loans that have not been used and are still stored in non-interest bearing loan account.
  • Working capital loans can be repaid before maturity timescale.

But often working capital loans backfire for borrowers who can not utilize the loan funds wisely. In fact there are several businesses that were forced out of business and changed hands since suffering losses due to having to pay instalment bank loans in excess of income net profit businesses.

Here are some tips for you who are planning to apply for working capital loans as additional capital.


  • Make a plan about what you will do by using loans / working capital loans, and only use the funds for working capital to finance all the activities that support business development. For example, to buy the production, purchase of raw materials, or to purchase wholesale goods that you sell back.
  • Always separate fund working capital loans from private money so you avoid using loans for private consumption purposes.
  • Set aside a portion of the business to repay KMK and do not ever use it for any other purpose.
  • Make a note of all the transactions that you make using the funds for working capital. These notes will help you to determine whether KMK is completely absorbed for business purposes or even wasted.


Do not use for working capital to finance other businesses that you may wish to start. This is because the new one will still be unstable in terms of revenue, you will not yet know the prospects for it’s future.


If your business is successful, try not to spend all of your profits on private consumption – they key is to re-invest. You can separate part of the profits in addition to your capital.