How To Get Capital For Your Biz

Please note that all this options ziko na pros na cons zake.

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The first way to get capital is through SAVINGS. Uzuri wa this option ni that ukiachieve the goal, huwa haina any other expenses. This is the safest option especially when you’re not sure whether the business idea itaenda as expected or not. Ubaya wa savings as an option ni that, it is a slow method to actualize your plan so Itabidi you wait longer to achieve it.

The second way to raise capital is through reinvesting profits. This profits can be from your business or an income from a gig. This option itakuhelp kusave money on loans, pia iko less risky than taking a loan na uko in control of everything. But on the flipside, sio kila time you get enough profits that you can use and pia reinvest. Another thing, not everyone has a side job or gig to get that extra cash.

The third way to get capital is through taking a loan. Generally loans are a quicker way to achieve this but ziko risky kiasi, itakucost some money and lazima you pay it back. But kuna njia mob za kuget loans. Let’s quickly look at the options.

This is the least risky option kwa zote. It’s more flexible, you can renegotiate payments. They can also be patient with you if things are slow and if things don’t work well they can forgive you. Ubaya, it can ruin relationships especially if things don’t go well and you don't pay them back. They might also want to have a say on how you spend that money or run the business.

Second ni Mpesa, na with this i mean the likes of mshwari, fuliza ama KCB mpesa. Hizi zinaokolea very fast but ubaya, some people don’t have limits or what they have as available limits ni small. Pia time given to repay ni short.

3rd ni Loan apps. This are quicker to access na less strict than kina mshwari in terms of credit score na story za CRB but ubaya most of them are very expensive and terms zao can be restricting sana

Saccos are also an option, ni rahisi kama you are a member na they are cheaper. But the problem is that you will need time to save first for a given period before you can access a loan, and if you don’t know other members in the sacco, you might not get guarantors easily so hupati loan.

Banks are another source. They are more dependable kiasi but the main problem ni that they require collateral or security which most people hawana.

Chamas can offer you loans, they can be very flexible and a cheaper option but most hupeana a small limit or have bad repayment options. Kama some, you have to repay daily which may not favor every business.

Lastly ni Loan sharks ama shylocks. This one is a NO NO! Hapo nayo, go if you want both financial, psychological and emotional damage. In the next episode, tutadistinguish between good and bad reasons to borrow.

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