This archive report was first published on 20 May 2020.
Loans are often viewed with skepticism, but they can be a powerful tool for business growth and wealth creation. In this article, we'll explore how leading business luminaries have successfully utilized loans to build their enterprises.
According to Lamin Manjang, former CEO of Standard Chartered Bank Kenya, a well-utilized loan can be a quick route to wealth. However, he emphasizes the importance of careful consideration before taking a loan, including income level, employment status, credit rating, and collateral quality.
Entrepreneur Jane Kagiri, founder of Creativedge Solutions, shares a similar perspective. She used to believe that debt must be avoided at all costs, but after a conversation with industrialist Dr. Manu Chandaria, she came to appreciate the value of borrowing money to build her business.
Not everyone finds it easy to secure a loan, as Roselyne Njoki Nthiga, founder and CEO of Angie's Tea, discovered when launching her business in 2015. She spent her first financial year juggling loan repayments and making profits.
Nassim Kassim, executive director of Sweet Waters Affordable Housing Services Limited, notes that loans can be more efficient than savings, particularly in the construction sector where projects demand significant capital.
Finally, Waceke Nduati-Omanga, a personal finance expert, advises that if you have a loan, your mission should be to settle it as soon as possible by making extra payments, thereby reducing the interest paid and the time taken to become debt-free.
