Busia: Businesspeople in Busia County have been urged to ensure they understood the terms of the loans before borrowing. Speaking during a client education forum in Busia, Patricia Nalianya from Demulla, a money lending organisation, said understanding the requirements and need of a loan will help the businesspeople to expand their businesses.
According to Kenya News Agency, Nalianya advised business owners to consider the interest rate, loan amount, timeline, and repayment pattern. This approach, she explained, would enable them to apply for loans that truly support their business expansion.
Nalianya also emphasized the importance of compliance with legal regulations to enhance business credibility. She noted that compliant and registered businesses are more likely to receive credit and have a competitive edge. Such businesses avoid the risk of closure due to non-compliance and maintain good standing with the government and creditors.
Nalianya further added that effective loan management requires business owners to understand their cash flow and profit margins. This knowledge helps determine borrowing capacity and repayment ability without straining business operations. She warned against borrowing from multiple sources without a repayment plan, which can lead to financial strain and repayment difficulties.
Demulla currently serves 600 business people in Busia who borrow and repay loans with the organisation. Nalianya highlighted that client business forums are conducted to help improve business measures, share new ideas, and discuss opportunities. These forums also encourage better customer relations and record-keeping for profit realization.
Businesspeople participating in the forum, led by Rosebella Shiranda, acknowledged the growth of their businesses through loans from Demulla. A spa owner shared her success story of expanding from a salon and employing six people, emphasizing the importance of loan repayment to increase borrowing limits.
Hendrica Munyaho, another participant, urged women to engage in business activities to foster economic growth for their families.