4 signs a secured business loan will take your business far

    October 25, 2014   No comments

Having a business is the way to go in this modern world economy.Even if employed with a big salary sufficient to finance all of your bills,depending on a monthly salary entirely for everything is risky. Keeping your wealth in the form of capital assets will reduce extravagancy and more importantly it will attract some extra money known as profits.
A smile on a business person's face will broaden
if that business is growing.A growing enterprise comes with increased profits.It might take long to grow sometimes.A business loan can give you a leap a head maybe to cater for the ever growing demand for your product or service.
There are a lot of financiers in kenya including more than 30 commercial banks who can tailor a loan package just for your business.How then will you know right away that an approved business loan will take your enterprise to the top?
4 SIGNS OF SUCCESS.
1) APPROVED DURING BOOM.
-Its most likely you are not alone in that business line.During boom periods for that business line, will most likely cause influx of loan applications to the banks. In a bid to reduce risks not all applicants will be approved.If you happen to get approved for a business loan during this period,it's likely your business will grow.
2) RIGHT LOAN AMOUNT.
-After all deductions to cater for all transactional,legal or any other legit charges,the loan amount should fit right into the business budget to be financed.It's a sign of success if the loan will cover all the expected costs.
3) FINANCING DONE WITHIN THE GRACE PERIOD.
-All lenders give a grace period to their borrowers. This is the period you'll be preparing yourself before starting to repay.A business loan whose intended activities(for example;buying more stock, buying new inputs or setting up a new branch/kiosk) are fully done within the grace period signifies business success.
4) FREE OF OBSTACLES.
-Obstacles here can mean anything hindering smooth implementation of the business activities which you borrowed money for.Not all loans are insured.Obstacles can be calamities like fires,bad weather,accidents or internal causes like workers' strikes and sicknesses.If there are no obstacles during the loan period then its likely the business loan will take your business far.
Good luck in your business activities. 
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Mwabaya Katana

Posted By Mwabaya Katana

Mwabaya Katana is a Personal Finance online writer.He is the founder of 'Loans Kenya' Blog.

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