By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Youth Village KenyaYouth Village KenyaYouth Village Kenya
  • Home
  • Education
  • Employment
  • Entertainment
    • Celebrity News
    • Celebrity Interviews
    • Sports
    • Fashion
    • Politics
    • Tech
  • Opportunities
  • Health
  • Contact Us
Search
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Reading: 8 Mistakes To Avoid When Looking For A Loan For Your Company
Share
Sign In
Notification Show More
Font ResizerAa
Youth Village KenyaYouth Village Kenya
Font ResizerAa
Search
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Youth Village Kenya > Blog > Business > 8 Mistakes To Avoid When Looking For A Loan For Your Company
Business

8 Mistakes To Avoid When Looking For A Loan For Your Company

Editor
Last updated: 2023/09/30 at 3:28 PM
Editor
Share
2 Min Read
SHARE

As an entrepreneur you must have “your feet on the ground” to get financing. 

You depend on it for your business idea to flourish.It is important to avoid certain mistakes when looking for a loan, so that the financial institution does not close the doors.

1. Not knowing who you are and where you stand. 
Identify what cycle your business is in, what financial need you have, what you need the resources for and how much you need.

2. Touch only one door. There are several formal financing options in banks and cooperatives. Study and analyze which one best meets your needs.

3. Borrow more than you need. Verify that the credit is not greater than 30% of your profits, so you do not have to pay it at the end with your own resources.

4. Watch the deadline. Choose a loan with a term longer than the time in which you plan to recover your investment. For example, if your investment is $ 1,000 and you will get it back in a year, ask for a loan that you have to pay back in 18 months.

5. Lack of seriousness. Deliver the complete documentation and at the same time so as not to give the impression of being an unserious company and defaulted on its payments.

6. Mix personal and business credit. It is very common that at the beginning of the project the entrepreneur uses his credit cards to finance his business. It should be considered that while it is growing it should formalize and seek non-personal sources of financing.

7. Not formalized. Inserting yourself into a formal scheme will help companies to be trustworthy to financial institutions.

8. Pay until the last day. Do not wait until the end to pay the loan installments because there are always unforeseen events. If you are late, you will have to pay surcharges and interest.

You Might Also Like

Build a Powerful Online Presence with Paid Article Placement in Kenya

Corporate Governance Scores Drop Among Kenyan Companies, Says CMA 2023/2024 Report

Botswana Businesses Relaunches as the Premier Resource for Entrepreneurs and Business Leaders

10 Things You Should Know About Tom Gitogo

10 Things You Should Know About Peter Ndegwa

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
[mc4wp_form]
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Editor September 30, 2023 September 30, 2023
Share This Article
Facebook Twitter Copy Link Print
Share
Previous Article Top 75 Adventure Movies You Should Watch.
Next Article 10 Facts Women Should Know About Penis
- Advertisement -

Latest News

Mulamwah Introduces Ugandan Girlfriend Weeks After Breakup With Ruth K
Entertainment June 5, 2025
Big Daddy Denies Leaking Nyako’s Private Photos as She Laments Missed Opportunities
Entertainment June 5, 2025
Khaligraph Jones Reveals He Lost 22kg in 3 Months Through Intermittent Fasting and a Simple Diet
Entertainment June 5, 2025
Samidoh Claims He’s Been Celibate for Seven Months During UK Performance
Celebrity News June 4, 2025
Jamal Rohosafi Sparks Buzz After Reuniting with Baby Mama Wangari Thiongo
Life Style June 4, 2025
Singer Marya Recovering at Home After Suffering Stroke, Family Appeals for Support
Life Style June 4, 2025
Captain Sammir Leaks Audio of Girlfriend Hannah Benta Demanding More Money
Life Style June 4, 2025
Ruth K Sets the Record Straight on Her Relationship Status After Mulamwah Breakup
Life Style June 4, 2025
- Advertisement -
Follow US
© 2023 Youth Village Kenya By Nine80 Digital Media
Welcome Back!

Sign in to your account

Lost your password?