If you’ve been thinking long and hard about getting serious about that bizna, you’ve probably thought about the importance of being credit worthy.
But this just ain’t in regard to biashara and what not, all aspects of your life. Maintaining good credit is oh-so-important so admin hopes you’ve really been on top of things when it comes to this. Lakini today we’ll specifically talk about how this can and will affect your business especially when you plan to make it official by registering it and all.
It’s really NOT fun to be registered on CRB for loan defaulting and having those incessant calls back to back hadi unaogopa kuchukua call when you angalia and it’s a number you don’t know. We’ve all made some miscalculated decisions at one point or another in our lives (but we are doing better now, no? 😉). Now imagine all that tainting your very good image when you wanna head to the bank to borrow a loan to endeleza that biz you’ve worked so hard for. Sigh.
So what makes up a credit worthy bizna? Let’s take a look:
- Capacity
Before getting that loan, your lender, in this case KCBae, will need some reassurance that you are able to repay the loan. Your companies’ past cash flow statements will be looked into so make sure you always have this in order. The more steady your biashara is in terms of recurring cash flow, the higher your chances of getting higher loans with more flexible terms and conditions.
- Capital
Just like taking a mortgage, you need proof of assets when considering borrowing that loan for your business. This can range from cash, property, jewelry etc. and it shows your commitment to both your bizna and the bank.
- Collateral
Just in case (which we hope it doesn’t come to that) things don’t go as planned, the lender needs to jua that the borrower’s assets and or value of business is enough to compensate for the loan in the event that you can’t repay it. You can chat with our team to find out what kind of collateral you many need for your loan.
- Condition
This may be in relation to the terms of the loan, the economy, industry and even your biashara. Your lender needs to be up to par with the nitty gritty of your business and if or how other factors like the economy or industry will play a part in it. This is used to determine how successful your bizna will be given the conditions, therefore making it easier to get that loan, or the opposite. Lenders also assess the risk based on how you plan to use the money.
- Character
Msee, we all know that one person ukimsaidia doh you KNOW there’s a 10% chance you’ll get it back. Or 0% 😂 Same thing goes when borrowing from the bank. You need to show you’re a guy of integrity and this will be monitored through your statements, ability to repay previous loans and how well you’ve been abiding by the law. This kitu really does go full circle so best to remain a legit person with good character.
If this speaks to you, ebu get on this wave. We’re giving MSME’s funding for biz. So if you have any inquiries head over to your nearest branch to get more info or just check it out right here.
Over & Out,
The Witty Banker.
