After taking a loan to invest in a business, how does one make sure that the loan repayments are done on time as agreed with the loan provider?
Loan Payment Tips from MESHERS
We spoke to MESHers who applied for business loans between January and March 2024 to find out ways and tips one can apply to make sure they have income and are able to pay back their loans.
Triz ako na biz ya hotel na huuza smokies, chips, and other food items in Nakuru. Loan alichukua helped her stock her business, keeping it running well and busy.
Aliqualify for a higher amount (KES 25,000) but hakua prepared for it, so akachukua KES 10,000, which was more than she expected compared to what most loan apps offer. Ku-make sure analipa loan, huwa ana-save some of her daily profit in an account ku-repay on time.
Wab ako na M-Pesa agent business in Butere, Kakamega County. Alitumia loan yake ku-increase M-Pesa float ku-improve commission from customers’ transactions. He also started a new business. After qualifying for KES 29,000 alitumia 11,000 to top up M-Pesa cashflow, 13,000 ku-buy beans ku re-sell and 5,000 in deras stock. Kulipa loan, ali-save the M-Pesa commission (KES 9,000 per month) which he used to pay his loan after 2 months first, then aka save up profits from beans and deras biz as part of the loan balance repayments.
Aggi ako na biz ya M-Pesa shop and salon in Kitui. Alianza biz yake in 2021 after leaving employment. Aliqualify for KES 32,000 but requested KES 30,000 and used entire loan amount ku-boost M-Pesa float yake. First month after receiving loan, commission ili-increase by KES 4,000. Kuwa na enough float ili-help ku-retain customers. Alitumia commission ali-make as profit ku-clear her loan repayments.
Loans if used properly can help in growing your business.
Ku-improve trust yako and chances za ku-get credit and loans, pay on time as expected, kuwa na relationship poa na lenders and communicate with your provider in case of any issues.
Cheki more tips za ku-improve loan repayments:
Create a repayment plan: Kuwa na clear plan that includes due dates, amounts, and priority of payments. Hii ita-help in managing cash flow, balancing income, expenses and ensuring timely repayments.
Increase revenue by looking for ways to boost your income, such as introducing new products or services, ama kutafuta new market reach. Ukiwa na channels kadhaa zinaingiza doh inazweza help in making loan repayments faster.
Make loan repayments a top priority in your business budget. Treat loan payments kama any other business expense, such as rent, electricity. Ukiweza anza ku-save from profits una-get.
Maintain financial discipline: Avoid the temptation kutumia doh za kulipa loan yako for other purposes. Resist the urge to use the loan money for other needs if possible.
Kama biz yako ime-get excess cash or good profits, consider making extra payments or paying earlier than your repayment date.
Separate accounts: Kuwa na dedicated account ya loan repayments kando hata kama ni putting money aside somewhere safe. Hii ita-help ku-track na ku-manage your loan payments more effectively.
Review expenses zako: Kagua business expenses zako and look for areas unaweza cut costs and save. Any savings unaweza manage inaweza tumika in loan repayments.