179 installments • 8%
I get chicken backs from a chicken factory around my area (Kenchic Limited) and supply to chicken shops in Nairobi. I am allowed to buy a maximum of 1000kg buying once a week. The demand for chicken backs in Nairobi is always higher than supply, since i don,t have a freezer I am only able to buy about 50kg a week. Buying at Ksh80 ($1) per kg and selling at Ksh130 ($1.625) per kg, I am able to make Ksh2500 ($31.25) a week. This good profit but is only 5% of my business potential. Due to high cost of living in Nairobi, very little of this goes to saving. I plan to to expand my business until i reach my full potential allowed by kenchic of selling 1000kg a week. This will raise my weekly profit to Ksh.50,000 ($625). This will require me to have at least two deep freezers of a volume of 600kg each. This far beyond my reach, but i know that a long journey starts with a single step. I am planning to purchase a 125kg deep freezer to kick start this journey. This costs about Ksh12000 ($150). I nearly hitting a saving of $100 and i am asking for a loan of $50.
Dec 18, 2014
Cost to entrepreneur
Lender interest: $50.09 at 11.50% annual rate over 1 month = $0.71
Service fee: $0.23