A second loan for the next big step

Entrepreneur

About Me

My name is Bonface Njenga and I live in a small town called Limuru, Kiambu County, Kenya. Limuru is a town composed mainly of low and middle class I am relatively educated. I was born in a family of two and raised by a single mother. My mother struggled real hard to raise us. She only completed O Levels and that meant she would not easily get employed formally job. She taught me resilience and hard work. Growing up in this town has taught me a lot. After finishing my high school education I passed and got a chance to join a local public university. I was admitted to pursue a bachelor's degree in Agro-forestry and Rural Development. One semester in the campus and I knew my heart was not there, so I put my education on hold. I raised seed capital from friends and family and opened up a small store. The idea was to stock fast moving consumer goods and select groceries. Starting was a real hassle, but six months into the business and it started breaking even.

My Business

My business entails retailing fast moving consumer goods. The town's economy over the years has changed from one based on agriculture to one based on services. This has led to a growing middle class that can afford to spend some extra cash on basic goods. This has been my main clientele over the years. The location of my business is good as it favors fast and free delivery of goods from wholesalers. On the downside, rent is relatively high, KSh11,000(USD130)/month. You also have to pay extra fees for private security as the security provided by police is not so great. That would be about USD4; every tenant in the building contributes that amount. Over time, even with all the challenges, I have really come to love my job. It makes me feel that I'm doing something worthwhile for the community. Waking up everyday to serve the people of this small town that raised me is my ultimate dream. One of the things I sell is fresh milk. I buy milk from farmers around and retail it to my customers. On average I sell about 70litres of milk in a day. People in Kenya love milk; tea with milk to be precise. Kenya is the second largest consumer of milk per capita in Africa. The profit margin for milk is usually 10% per every liter . My greatest problem is that some days the milk doesn't move so fast making it to go bad. This is is a very big loss considering the margins . With the loan, I am requesting for about KSh26,000(USD306), I will be able to buy a quality small deep freezer to cool the milk overnight and save me the loses. Currently a small deep freezer goes for about KSh21,000(USD247). The remaining money will be used to buy accompanying equipment and gadgets. I will also be able to stock more milk and serve more customers.
1USD=KSh85
Thanks.

Loan Proposal

Hi guys,
I'm here again asking for a second loan.
My first laon went into inventory increment.
My second loan will also be for the same purpose. I'm still waiting to get to the point where I can be advanced one to purchase a deep freezer. For the meantime, my loans will be going towards adding the stock; to make sure all fast moving consumer products are available all the time.
Wheat and maize flour, rice and sugar are the consumer goods that I want to boost stock. Most shoppers around here buy their goods from shops.
I'm also upbeat about this year. With fuel prices falling I think the average shopper will have a little bit more of disposable income.
Thanks a lot, to all of you.

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