Business Funding? Get that loan approved
In as much as loans are not a popular way of raising capital, they surely are a run-to option and savior. Ask any successful business person and they’ll testify that getting loans for the right reasons go a long way to boost and might even sky rocket businesses in the country and abroad. Since the introduction of the Loans Interest Rate Cap by the Government of Kenya, implemented by the Central Bank of Kenya (CBK) back in 2016, banks have become more cautious in matters loans and who they lend money to. The lenders now look for a lot more in a loan applicant and are stricter in their terms.
We take the liberty to give your business a heads up of things or Checklist that has to be taken into account even as you think of approaching your Bank for funding.
- Lay out your requirements
Be sure to check out loan packages online and what different industry competitors are offering. Labor to know what kind of loan your business needs, specific tasks to be facilitated by the loan, affordability and working out the fastest repayment goals.
After getting the right loan package for your business, make contact with the offering institution directly, requesting their loan eligibility criteria. Never underestimate the value of having personal appointments with loan officers of the chosen institution. These appointments shed more light on the necessary documents and timelines that you need to start the loan approval process.
It is crucial to have information of your credit history and current score up front so as to compare with the institution’s. Correct and point out any errors in the above reports and clarify any funds whose use hasn’t been clearly stated. This is so since lenders rely heavily on the past usage of credit. Remember to apply for a loan within your financial ability.
With information given by the financial institution, create a checklist for the documentation needed. Take ample time to get all required documents, as incomplete applications could lead to denial of the loan.
Never be in a hurry while applying for a loan. This may lead you to ignore important loan information especially the terms and conditions. Do not agree to the terms without clearly getting to know the implications of all the mentioned clauses. Remember that the devil is always in the detail.
Use KenyaCompanies.com to find the top banks in Kenya, outstanding Credit Management Institutions locally and trusted SACCOs that are all parties of interest in your quest for a loan. List your business with us for more credibility, visibility and leverage on our rich database of various companies in Kenya to potentially acquire business to business leads.