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Logistics Loans

What funds are usually needed by logistics companies?

 What funds are usually needed by logistics companies?

A logistics company is a broad spectrum business – a role in ensuring that products are transported from producers and reach consumers. The main activities of logistics companies are transportation, storage warehouses, distribution, including sending and receiving goods.

Fund loans for logistics companies can cover various types of expenses to ensure your company is running well. The following is the use of funds from logistical loans.

Adapting New Technology

Along with the high cost of labor and the need to increase productivity to be able to continue to compete, it is very important for logistics companies to implement new technologies – such as cloud-based software, robotics and sophisticated analytical tools – to stay in the top position and for business growth opportunities.

Logistics companies like Nin Van for example; the company uses real-time algorithm technology, engine and packet tracking systems for daily operations. Emphasizing the importance of technology, its founder, Lai Chang Wen, said “Ninja Van needs to maintain digital culture and innovation, to prevent its companies from being” disturbed “by competitors”.

Buying equipment

Asset-based logistics providers will need significant investments to procure fleets and networks. Equipment loans and leasing are financial choices that you might consider to meet your business equipment needs.

Overcoming Seasonal Impacts

The holiday season, as well as the proliferation of learning on e-commerce can be a pressure to be fulfilled. In overcoming this seasonal challenge, companies need a long-term strategy investment, for example having a headquarters for drivers who are ready, or using tools to forecast demand and provide supplies.

Funds for Expansion Activities

Funding options from outside parties can be useful for capital expansion plans for your business, both adding labor, increasing depots and sorting rooms, opening new locations or utilizing unexpected opportunities that can arise at any time.

What types of logistic loans are available?

Guaranteed Loans

This loan requires the borrower to provide assets as collateral to the lender. If the borrower is in arrears or is unable to repay the loan, the lender can sell assets to cover the unpaid losses. This form of loan is usually used for activities that require a lot of funds, such as major renovations and procurement of work tools.

Factoring

With this loan method, you are not in debt; rather, you fund based on bills that already exist and have not been paid by the customer. This financing option is suitable for businesses in the logistics sector, because it provides quick access to the payment of invoices that have been tied to the customer.

Credit Line

The credit line allows the borrower to get an agreed amount of funds. You can withdraw the amount as needed and pay the interest according to that amount. This option is flexible for logistics businesses because it can be used for short-term needs, such as paying employees, expanding, or operating costs.

Equipment Leasing

Equipment leasing is not a debt; but you use a tool with a rental / borrowing agreement.

That way, you don’t need to invest capital by buying the equipment, but you pay it on a monthly basis to the provider of goods according to the specified duration. When the agreement expires, you have the choice to return the tool or will buy it at market price. This financing is a common choice for entrepreneurs who are looking for sophisticated technology tools without having to pay for maintenance costs and ensure that the machines used are the latest machines.

Tips to help you prepare a logistical loan proposal

 Tips to help you prepare a logistical loan proposal

With good preparation, you can have a high chance of getting the loan you need. Here are some tips:

The importance of filing time

Make a strategy to target loan applications. Show the loan provider that lending to your business is a good investment, don’t show why you need a loan. Therefore, the right time to submit a submission is when you have a good credit score, and experience running a business with good growth for at least three to six months.

Fix your personal credit score

Your personal credit score affects the filing of a company loan. This is because personal guarantees are often needed by loan providers – especially for new businesses whose owners are looking for loans, while their business has not shown strong business credit.

Your personal credit score is also important as an indication that you are able to manage funds, and you can pay bills on time. Next, let the loan provider decide to approve your submission.

These are steps you can take to improve your credit score so you can get external funding:

  • Review your credit report, identifying the factors that can reduce your credit score

  • Make sure your credit payment is on time. There are two credit categories: open-end credit and close-end credit. Open-end credit, also called revolving credit that can be used repeatedly. Credit cards and home guaranteed loans are examples of this category. Other categories are closed-end credit that is used for certain purposes, paid according to the stipulated period. Examples are mortgages and car loans.

  • If your credit is influenced by factors that you cannot control, there are two options for dealing with it: write a letter to explain it (complete with a copy of the document that can support your claim), ask for help to repair your credit to the credit service office.

Where can I get a loan for the logistics business?

Where can I get a loan for the logistics business?

Having a minimum annual income of IDR 2,000,000,000, two to three years operational history and an estimated average daily balance of IDR 100,000,000 in your bank account are the criteria that must be met if you are going to apply for a loan to the bank. Not to mention the submission process can be up to one month and the process is complicated – this can disrupt the financial health of your company so that it will lose business opportunities.

With the Astro business loan application, the loan application process is more convenient and faster – sending a submission only takes a matter of minutes and you will be notified within 24 hours.

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