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Have you ever failed flat in business?
Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Bigchick
I am wondering about the following:
1.Did she borrow 800k and this has now balloned to 859k?
2.Was she a first timer?If so it would have been advisable to engage an agronomist to see her through to harvest.
3.What acreage has she planted the melons?
If it is large and the harvest was successful,then it would be better for her to get buyers(by the truckload) to come to the farm and then she sells at farmgate price.thus she would not need to have a sales outlet.
4.Has the irrigation been done on the entire 10 acres?If so,she can sub-lease some of it and use the proceeds to offset some of the loan?She can join a number of FB groups which can help in this regard.
5.In any business,it is always wise to start small..
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Rank: Member Joined: 1/13/2012 Posts: 139
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@Big Chick, this is a dicy one, there is no crop i think the only offer here is sub lease the land to cover the extra 59k and let the FD be liquidated, thus no loan and from there she can think clearly on way forward. Is she a good farmer- has she farmed before? If she set up the infrastructure properly she should leverage this to a Big farmer, a few months ago this would have been an fantastic opportunity but now I have already set up farming. sparkly wrote:Bigchick wrote:sparkly wrote:Bigchick wrote:watesh wrote:Bigchick wrote:Looking for help/advice for a friend.
Her story.
She is came back from Europe and deposited 800k in the brown bank and borrowed against it and went in agriculture(growing melons)The agri loan was to be paid in one bullet payment upon sale of the melons.It did not work as planned.Melons she grew as planned and sales have been there but her costs seem high too.So the loan has not been paid and time is up.
She is now at ground zero.How can she pick up?
Her passion is agriculture and she has a 10 acre leased land. What are the components of the high costs? Once we know that we get to know if they are fixed costs or variable costs They are abit of both Fixed costs include Wages at the farm,Irrigation of the plants,Rent for her sales store and other maintainance costs of the crop. Variable ones include transport to clients,brokers fees to mention but afew. My key concern right now is that she is flat on the ground.No money to go on and the bank will liquidate her FD. The land is there but seeds and other inputs for the next crop hakuna.What next..... Deposited 800k and borrowed against ... Investing the 800k would have been a better idea to start with then borrow to grow. Nevertheless all is not lost. try: 1. Restructure/ extend loan repayment period. the loan. Interest will be lower than previous due to rate cap. 2. Get someone to inject equity investment, use proceeds to pay loan and for working capital. 3. If all fails, liquidate the FD, pay loan and put balance on the working capital. Option 1 failed.The bank said no to extention.That the terms are very clear on agri loans Option 2 is sounds good.Where can such a person be found.She is willing to discuss.The land is not hers but she has a 10 year lease and she develpoed the infrastructure.....water system for irrigation etc. Option 3 is inevitable as that is what will happen come 30th October and she has not paid up the loan.Unfotunately she will have no balance as the same is outstanding at 859K while her FD is 800k So if you know of any interested investor send me their contacts. I have a friend who has always wanted to to invest in agriculture. Where is your friend's farm?
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.
Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.
She has learnt her lessons and she will make a killing in the second attempt.
My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered.
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Rank: Member Joined: 1/22/2015 Posts: 682
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See how people are being helpful after fellow wazuans have confessed to failure. The badness is for people to confess to failure in real life is too hard. Everyone claims to be doing booming business for the sake of impressing friends. That's the attitude that ends up sinking you eventually when in reality some helpful friend could have intervened if you were man enough to say the truth
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Rank: Member Joined: 12/17/2011 Posts: 887
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Mike Ock wrote:See how people are being helpful after fellow wazuans have confessed to failure. The badness is for people to confess to failure in real life is too hard. Everyone claims to be doing booming business for the sake of impressing friends. That's the attitude that ends up sinking you eventually when in reality some helpful friend could have intervened if you were man enough to say the truth Word.
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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Happening right now to a friend. Thieves are not good people. Tumeelewana?
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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alma1 wrote:Happening right now to a friend. tell him to create tweeter post,attach the video and post it here,kenyatlk.com . The masses will be marshaled and news stations roped in ,It works as magic.Also let aspiring mca of that region roped in too...
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Rank: Elder Joined: 2/8/2013 Posts: 4,068 Location: At Large.
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FRM2011 wrote:@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.
Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.
She has learnt her lessons and she will make a killing in the second attempt.
My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered. This is the 1st thing we did. Unfortunatly I think her Branch Manager does not feel her or there os more that I don't know.They were categorical that come end month the loan has to be paid. The mess is they liquidate her FD clear their loan and she still has a balance of about 59K. She has zero cash right now to proceed with the farming. Asanteni wote for your ideas.Will share with her and above all link her to that number given up there. Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
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Rank: Elder Joined: 2/8/2013 Posts: 4,068 Location: At Large.
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Chaka wrote:@Bigchick
I am wondering about the following:
1.Did she borrow 800k and this has now balloned to 859k?
SHE BORROWED 720K WHICH IS 90% 0F THE FD.AFTER 6 MONTHS SOME KIHIBIRANIA SEEMS TO HAVE HAPPENNED SHE WAS GIVEN ANOTHER 170K WHICH SHE DID NOT ACCESS BUT WAS FEATURED IN HER STATEMENT.SHE HAS BEEN PAYING 17K PM HENCE HER BALANCE OF 859K
2.Was she a first timer?If so it would have been advisable to engage an agronomist to see her through to harvest
YES SHE IS A FIRST TIMER BUT VERY KNOWLEDGEABLE HAVING LEARNT MAJUU.
3.What acreage has she planted the melons?
5ACRES
If it is large and the harvest was successful,then it would be better for her to get buyers(by the truckload) to come to the farm and then she sells at farmgate price.thus she would not need to have a sales outlet.
SHE HAS ORDERS FROM SUPERMARKETS BUT THE SMALL ONES SHE SELLS FROM THE KIBANDA.
4.Has the irrigation been done on the entire 10 acres?If so,she can sub-lease some of it and use the proceeds to offset some of the loan?She can join a number of FB groups which can help in this regard.
NOT SURE ABOUT THE AREA UNDER IRRIGATION.WILL UPDATE HER ON FB ISSUE
5.In any business,it is always wise to start small.
See response in CAPS.ASANTE Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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out here you can't even trust family members...I remember one family member locking up my company's tools just a week ago in his warehouse just to frustrate my technicians...the fella was even the one who suggested I can use his empty warehouse as a storage facility...now no family member in my business...the last one was fired this week...Id rather them hate me than sink my promising start up.
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Rank: Member Joined: 8/16/2012 Posts: 660
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Bigchick wrote:Chaka wrote:@Bigchick
I am wondering about the following:
1.Did she borrow 800k and this has now balloned to 859k?
SHE BORROWED 720K WHICH IS 90% 0F THE FD.AFTER 6 MONTHS SOME KIHIBIRANIA SEEMS TO HAVE HAPPENNED SHE WAS GIVEN ANOTHER 170K WHICH SHE DID NOT ACCESS BUT WAS FEATURED IN HER STATEMENT.SHE HAS BEEN PAYING 17K PM HENCE HER BALANCE OF 859K
2.Was she a first timer?If so it would have been advisable to engage an agronomist to see her through to harvest
YES SHE IS A FIRST TIMER BUT VERY KNOWLEDGEABLE HAVING LEARNT MAJUU.
3.What acreage has she planted the melons?
5ACRES
If it is large and the harvest was successful,then it would be better for her to get buyers(by the truckload) to come to the farm and then she sells at farmgate price.thus she would not need to have a sales outlet.
SHE HAS ORDERS FROM SUPERMARKETS BUT THE SMALL ONES SHE SELLS FROM THE KIBANDA.
4.Has the irrigation been done on the entire 10 acres?If so,she can sub-lease some of it and use the proceeds to offset some of the loan?She can join a number of FB groups which can help in this regard.
NOT SURE ABOUT THE AREA UNDER IRRIGATION.WILL UPDATE HER ON FB ISSUE
5.In any business,it is always wise to start small.
See response in CAPS.ASANTE What was that in red again ? Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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FRM2011 wrote:@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.
Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.
She has learnt her lessons and she will make a killing in the second attempt.
My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered. @FRM2011, How does that work?
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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mulla wrote:sparkly wrote:mulla wrote:Nabwire wrote:[quote=RichVee][quote=Angelica _ann]Whah you guys have made me look back and be encouraged. In my old age all along I have only lost about 600k on the outside, pyramid schemes and Sacco guarantees.  Am really encouraged  Too careful perhaps? or maybe more sensible than most. But have you actually ventured into business? Because what makes one put in money is the passion and conviction that it will work out... All said and done, when you rise up from the ashes, you know you can face almost anything, plus it makes for a good story  I read somewhere that women are better money managers and I believe it! Hizi figures watu wamepoteza, I highly doubt there are women who have lost that amount. I've lost a tenth of what Amgelica has lost, and I beat myself up constantly over it. Most women I know who re in business are very frugal with their money. From your statement I can tell you for free you are not cut out for business nor the stock market. Losing money in business is guaranteed like daylight...and I am not talking little money. At the end of it all what matters is you will make more money than you loose. You are constantly in search of the businesses that will work,and if you fail,hey,you grieve,wake up,learn from it and move on. Reading this forum I am encouraged. I am going through ankther business failure and the same time another business start up. In stock trading i have lost a lot of money but NETT have made more comparatively on the gains. Right there is the most peddled fallacy... that you have to lose money in business. You don't go into business to lose money. You go into business to make money, to enjoy the flexibility of working for yourself. If you are a perpetual failure in business, consider employment. [/quote @Mulla, Businesses lose money all the time. It only depends on the level of losses. Ask SAMSUNG. Out of curiosity, which biz are you in that never loses money?
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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mkeiy wrote:FRM2011 wrote:@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.
Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.
She has learnt her lessons and she will make a killing in the second attempt.
My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered. @FRM2011, How does that work? If you have 1m in your bank account, and you want to invest 1m in a business, the way I do it is open a fixed deposit in the bank and use it as security to borrow 1m. It's so straightforward since the bank considers it a risk free lending. With the new law, your 1m earns 59k after withholding tax. Your total interest expense will be 77k. Net int exp kes. 18k. At my bank, I simply sign a form they call charge on deposit, and within 24hrs, they have disbursed my loan.
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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Bigchick wrote:FRM2011 wrote:@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.
Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.
She has learnt her lessons and she will make a killing in the second attempt.
My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered. This is the 1st thing we did. Unfortunatly I think her Branch Manager does not feel her or there os more that I don't know.They were categorical that come end month the loan has to be paid. The mess is they liquidate her FD clear their loan and she still has a balance of about 59K. She has zero cash right now to proceed with the farming. Asanteni wote for your ideas.Will share with her and above all link her to that number given up there. @bigchick, pliz don't let her give up. Her case is so straight forward there is no cause for alarm. Go to another branch or look for someone you know in the bank and do the business. You guys could assist her to clear the loan on the understanding the bank will disburse a new loan thereafter.
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Rank: Elder Joined: 2/8/2013 Posts: 4,068 Location: At Large.
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Bigchick wrote:Chaka wrote:@Bigchick
I am wondering about the following:
1.Did she borrow 800k and this has now balloned to 859k?
SHE BORROWED 720K WHICH IS 90% 0F THE FD.AFTER 6 MONTHS SOME KIHIBIRANIA SEEMS TO HAVE HAPPENNED SHE WAS GIVEN ANOTHER 170K WHICH SHE DID NOT ACCESS BUT WAS FEATURED IN HER STATEMENT.SHE HAS BEEN PAYING 17K PM HENCE HER BALANCE OF 859K
2.Was she a first timer?If so it would have been advisable to engage an agronomist to see her through to harvest
YES SHE IS A FIRST TIMER BUT VERY KNOWLEDGEABLE HAVING LEARNT MAJUU.
3.What acreage has she planted the melons?
5ACRES
If it is large and the harvest was successful,then it would be better for her to get buyers(by the truckload) to come to the farm and then she sells at farmgate price.thus she would not need to have a sales outlet.
SHE HAS ORDERS FROM SUPERMARKETS BUT THE SMALL ONES SHE SELLS FROM THE KIBANDA.
4.Has the irrigation been done on the entire 10 acres?If so,she can sub-lease some of it and use the proceeds to offset some of the loan?She can join a number of FB groups which can help in this regard.
NOT SURE ABOUT THE AREA UNDER IRRIGATION.WILL UPDATE HER ON FB ISSUE
5.In any business,it is always wise to start small.
See response in CAPS.ASANTE Some action that is not clear or cannot be explained. Kama kifunga macho.Some signing of documents then bang some 170k in your loan statement and a payment schedule was unleashed. Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
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Rank: New-farer Joined: 7/17/2014 Posts: 17 Location: Nairobi
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2013...decided to do a petrol filling station. Land price in Nbi being over the roof, Talked to my old man to have it at his parcel huko bunduz. No market research at all but was confident I'd get a good ROI since the nearest PSS was about 10kms away plus I had seen potential of the market center being a hive of activity courtesy of it being a miraa collection and dispatch center among other cash crops. Approx 2m was sunk in the project. Fast foward to masaibu,super was the only fast moving product,kero I could only sell an approx of 200l per month, diesel, most truck guys wanted credit which I wasn't ready to offer after a lesson or two. As we speak, old man made the diesel tank his oil well. Masaibu No.2 left the venture to be managed by moms, bank accounts in her name,only when broke I'd ask for a quick top up. Long story short, I'm smarting from that loss of not managing my ventures directly and gifted my old folks a retirement package. Starting another soon. Family and business is a tricky affair especially if you don't manage the finances directly.
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Rank: Member Joined: 1/20/2015 Posts: 489 Location: Nairobi
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Am 27, have worked for 3 years post college! I have never ventured into any business in my life, i have never tried anything. so to me success or failure is so alien. However, i have about 27 business ideas that i have been noting down since 2014........so am just here!! I am so risk averse, and I prefer taking my time before taking a step. Hope its never too late Enjoy every moment of your life, you never know when your time will come.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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UpcomingPaperChaser wrote:Am 27, have worked for 3 years post college! I have never ventured into any business in my life, i have never tried anything. so to me success or failure is so alien. However, i have about 27 business ideas that i have been noting down since 2014........so am just here!! I am so risk averse, and I prefer taking my time before taking a step. Hope its never too late If you don't want to make a mistake,don't do anything!
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