We at Karibu are committed to making loans easily accessible to women. The loan uptake by female entrepreneurs has had some challenges though such as the fear of being unable to repay, lack of spousal support, inability to understand the type of loan that best meets the needs of their business amongst others. While we have put measures in place to dispel some of the fears about taking a loan, there are ways female entrepreneurs can position their businesses to access loans.
Have a workable business plan While most women have a natural ability for organization, they are also known to shy away from documentation processes as it relates to a business. It is necessary for you to go the extra mile to understand how your business works beyond making sales.
Get your business registered Quite a number of female entrepreneurs in Kenya begin their businesses as a side-hustle, a hobby and as such, registering the business may not be a top priority if sales can continue without it. Unfortunately, without registration, your business is not recognized as a legal entity and cannot enter into a contract with any financial institution. If you have any plans to boost your business growth with a loan facility, getting registered is one of the first steps to take. Some entrepreneurs delay business registration to avoid tax duties. However, you should consider the sustainability of your business.
Open a corporate account and use it Having a bank account not only serves as a means of financial identification and representation, but also provides a safe place for you to keep and track your money. Personal accounts mainly serve as a vault for savings, but if you are planning on starting and maintaining a business, a business account can provide you with more benefits to assist in your venture. When you operate a corporate bank account, you not only know the true financial picture of your business i.e. your financial turnover but your tax deductions are also calculated accurately.
Organize your financial records This is another area where most small businesses fall short. Some women assume that their businesses aren’t big enough to maintain records while some still regard the business funds as personal resources. It is important to distinguish these two things and maintain a financial record for your business no matter how basic.
Be social and information driven You should not be afraid to ask questions and understand exactly what you will be getting into should you accept financial backing from any institution. Find out if you can get flexible repayment terms that suit your business. Be hungry for information and use it to the benefit of your business. Also, no matter what industry your business is in, social media offers the opportunity to establish and amplify your brand as well as give you access to information on low cost loan facilities to boost your business. Following socially aware partners like Karibu Microfinance exposes you to financial tips for your business.
Be clear on what you require You should be clear about the amount you require to run your business. Understanding your business and industry will help you know just how much you need and what structure of the loan repayment will work best for you. You shouldn’t take more than you can afford or less than you need.