Purchasing a milling machine

George

Kiptangwanyi, Kenya

5% repaid

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How it Works

Entrepreneur

Name

George

Member since

September 2012

On-time repayments

257 installments • 13%

About Me

I am married with one child. I live in Kiptangwanyi shopping center which is about 43kilometers from Nakuru town. This is the nearest major town where we go to get our supplies. I live in plot number 347 at the shopping center. My business entails a cereals shop at the trading center. I purchase maize, beans, wheat and other dry grains at my shop. After I have bought them I later resell them to major towns such as Nakuru, Gilgil and Naivasha.

My Business

My business entails a cereals shop at the trading center. I purchase maize, beans, wheat and other dry grains at my shop. I have been in this business for five years now and I am well conversant with it. I have many customers from within the shopping centers as well as other towns. I also have a good source of supplies. The main challenges that the business encounter are lack of enough capital to expand the business and drought.

Loan Proposal

Dear lenders,
I hope you are well. Am well too and my business is doing fine too. I am grateful that I am in Zidisha as I have doe great things with the loans that I get from Zidisha organization. I wish to use this loan to purchase two machinery that will be very useful in my business. Firstly, I wish to purchase a posho mill. This will be used in converting my cereals into flour. Main cereals that I will grind are maize and wheat. This will be a great value addition for my products. A new poshomill is costing 50000ksh(about 569 US dollars) Secondly, I will purchase a grade 1 miller. This will be used in converting the flour into a grade 1 flour. The miller will cost about 40000ksh which is approximately 455 US dollars). The total cost of the machinery is 80000ksh which is approx 1024 US dollars. The remaining amount from the loan will be used to cover for transport of the machinery from the shop to my business premises. The expected income from the machinery is as follows.
Normal grinding of flour per day is 2bags of the cereals(maize and wheat) at 400ksh(about 4.5$) per bag, thus 2bags will be 800ksh(about 9 US dollars). Grade 1 milling is 1bag of cereals per day at 600ksh per bag. The total income per day will be 1400ksh (about 16 US dollars). 30% of the income will be for electricity consumption and labour and that transforms to 420ksh(about 5 Us dollars) thus net profit per day is 980 ksh(about 12US dollars). Monthly net profit will be 29400ksh(about 334US dollars). Annual net profit will be 352800ksh(about 4000US dollars). Thanks for your support.