1 . Stock purchase
2. Working capital
3. Asset finance
1. STOCK PURCHASE
Stock purchase is the loan given to businesses to buy stocks only. If you own a trade store and wish to apply for a loan to restock your depleting stick items, the loan you should requesting from banks is stock purchase. For BSP stock purchase under the SME Credit Enhancement Loan, K50 000 is the maximum and must be repayed in 1 year period only.
2 . WORKING CAPITAL
Most times , many loaners need cash money to be given. That's working capital. Working capital is the cash that banks will debit to your business account as loan. This happens when you need finance to purchase things apart from stock purchase and asset finance. For BSP, K50000 is the maximum working capital and loan repayment schedule is strictly for a 1 year period. Sapos you nidim cash money, Askim lo Working capital.
3. ASSET FINANCE
Asset finance means to get loan to buy assets such as vehicle, refrigerator, generator, speed boats etc. Under the Government Sponsored SME loan, asset finance has a life span of 15 years and the maximum loan is K5 million. Due to volatility in the real estate industry, BSP is currently reluctant to give loan on purchase of house and building materials under the SME Credit Enhancement Loan. However you can seek the other loan products under the Home finance loans..
Remember: Do not request for all three in one loan as they won't allow it. However, you can still request for both working capital and stock purchase in one loan ad both have a life span of 1 year.
Good Luck
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