To survive in the ever-changing business environment, microfinance institutions have put in place strategies that give superior value to customers .This brings about sustainable advantage thus attaining high-performance level over competitors.

However, while choosing the favorable microfinance suited for your needs, a couple of factors centered on convenience of the services received should top your checklist.

          1 Efficiency Of Services to Clients

Ensure the microfinance of your interest is reliable whenever needed. Where there is a customer support system dedicated to keeping you in the loop round the clock.

Bidii Credit   provides an efficient way to access credit by minimizing unnecessary processes. We are aware that access to capital for SMEs is of great importance in nurturing free enterprise, healthy business rivalry, innovation, and growth in all economies.

2 Individual lending

 This is the simplest and the oldest credit lending model where small loans are given straight to the borrower. Most SMEs have greatly benefited from this model since it is easy, efficient, and confidential.

Individual loans are given based on a combination of personal guarantors, individual savings accounts as well as co-signers and household securities to ensure repayment.

At Bidii Credit we have embraced the individual lending model for all our products and this has benefited our clients through efficiency and effective turnaround time.

3 Non-Financial Services

Access to funds as well as improved services also play a significant role on the development of SMEs. To maximize usage of the resources availed by the lenders, microfinances provide non-financial packages such as training of their clients. This is done through physical meetings, webinars and/or monthly circulations of written materials on various topics of interest.

Bidii Credit values the growth and well being of our clients’ businesses . All our relationship officers are well trained to provide free business advice to our clientele. We work hand in hand with our clients listening to their needs and finding the right package to improve their endeavors.

4 Credibility of the microfinance

People shy away from financial institutions for the fear that after investing with them some of these microfinances end up going under. Long-term survival and sustainability are critical for a business owner. Microfinances allows SMEs to protect, diversify, and increase their sources of income, the essential path out of poverty and hunger.

The ability to borrow a small amount of money to take advantage of a business opportunity, to pay for school fees, or to bridge a cash-flow gap can be a first step in breaking the cycle of poverty.

Bidii Credit is a licensed financial provider. Our top management is tasked with overseeing operations and ensuring they run seamlessly.

5 Choose a Micro-finance That Understands Your Business

SMEs vary widely in size and capacity for growth. As an entrepreneur you should look for a microfinance that understands the nature of your business. This ensures that they offer you a suitable product that will boost your business effectively.

We value our customers and take time to understand their needs. This guides us in offering them the most suitable product out of our wide range of SME loans.

The post Boosting your business through microfinances in Kenya appeared first on Bidii Credit Limited.

Credit score affects your financial life significantly as it plays a key role in a lender’s decision to offer you credit. A credit score of 500 and below is considered poor and this results to financial institutions declining you loan request. Below are some ways to improve your credit score:

1. -Paying your loans on time: consistently making credit card and loan payments on time is one of the biggest factors of your credit score. Set up reminders on your phone or email so you don’t miss a payment. Six months of on-time payments are required to see a noticeable difference in your score.
Secondly, you can cover your payments on time by changing the dates your payments are due. Set up your payment schedule based on when you get paid. Consistent and timely payments have a big impact and will greatly improve your credit score over time.

2.Increase your credit line: If you have credit card accounts, call and inquire about a credit increase. If your account is in good standing, you should be granted an increase in your credit limit. However, it is important not to spend this amount so that you maintain a lower credit utilization rate.

3.Work with one of the best credit repair companies: If you don’t have the time to improve your credit score, credit repair companies will negotiate with your creditors and the three credit agencies on your behalf, in exchange for a monthly fee. Additionally, given the number of opportunities that a great credit score provides, it could be worthwhile to utilize one of the best credit monitoring services to keep your information secure. Dispute Wrong Information on Your Credit Report. There are several Kenyan individuals offering these services on freelance basis on upwork

If you check your credit report and notice that there’s wrong information, take action to resolve it. Dispute any errors promptly. Consistent credit fix reviews will improve your credit score as well as develop the habit of staying on top of any inconsistencies.

4. Don’t close a credit card/ loan account: Once you pay off a loan or if you are not using a certain credit card, you may be tempted to close the account. However, in order to keep your credit score higher, you should actually keep the credit card open.

5. Pay Off Owed Money
The amount of credit you have versus the amount of credit you’re using is a factor in your credit score. Stop borrowing money and pay off what’s already owed. This is one of the best ways to relieve stress and improve your credit score fast.

Your credit score is one number that can cost or save you a lot of money in your lifetime. An excellent score can land you lower interest rates, meaning that you will pay less for any line of credit you take out. But it’s up to you, the borrower, to make sure that your credit remains strong so you can have access to more opportunities to borrow if you need to.

At Bidii Credit we have personal credit managers who will be at your disposal to give you FREE advise on your credit before you take a loan. You can call us any time for a loan review or as for a callback by visiting us on https://www.bidiicreditkenya.co.ke/contact-us 

The post How to improve your credit score with financial institutions. appeared first on Bidii Credit Limited.

There are some common mistakes people make which we will address in this article hence leaving you better informed and more confident about loan applications.

Not Checking Your Credit Score

The approval of your loan application depends on your credit score. Before applying for any loan, the first step should always be to check your credit score.

This number is based on your credit history and current debt levels, and it gives a lender an idea of how trustworthy you are as a borrower. A low credit score denies you the chance to get a good interest rate and can lead to your loan application being rejected.

You can access your credit score from credit reporting companies such as Transunion. All you need to do is download the TransUnion Nipashe app on the Google Play Store, pay a registration fee and then request your credit status.

If your credit score is low, you should consider paying off your outstanding bills, pay down your debts and make sure you’re paying your existing bills on time.

This will improve the number hence setting you up to qualify for a better interest rate, which will save you money. Paying down existing debt will also help you to better afford the payments on a new loan.

Pro Tip: If your credit score is low, you can read on how to improve your credit score

Making Multiple Loan Inquiries

Each time you seek a loan from a lender, a query is raised, and it appears on your credit report along with the date. With each query, your credit score reduces.

When multiple queries are raised in a short span of time, you are considered as ‘credit hungry’. A Lender views this as a sign of high credit risk which reduces the chances of your loan application being approved or may lead to a higher interest rate.

Pro Tip: Do your research to understand which lenders are right for you. Find out more about the lender and product by visiting their website or calling customer care to get clarity of the requirements and types of loans they offer.

 Falsifying Financial Information

While you might be tempted to fudge the details about how much you make and how much you owe, this is technically considered fraud. If a lender realizes you’ve misrepresented your financial information, they reject the loan.

The biggest reason a lender wants to know about your financial situation is so that they can evaluate your repayment capacity. This might be frustrating if you had your heart set on buying a new Ferrari but only got enough money for a used Chevrolet, you can take comfort in knowing you’ll be able to afford your loan payments.

Pro Tip: Provide full disclosure of your finances as it is today, it will not necessarily deter a lender but hiding details is likely to do that and might make it difficult for you to secure a loan.

Not Researching Your Lender Thoroughly

Taking a loan is a big decision that significantly affects your financial life for an extended period. While lending is largely well regulated, there are still less than scrupulous lenders who use predatory practices to make a profit and especially in Kenya. To safeguard yourself from falling prey to such lenders, do your research before you approach them for a loan.

Keep in mind that a reputable lender will make the whole process of borrowing transparent and will take the time to explain the process to you. They will disclose all aspects of the loan sanctioning charges upfront and offer legitimate repayment options.

Pro Tip: Opt for registered organizations as they will be under strict compliance ensuring consumer safety.

Not Understanding the Loan Product

Loan products can seem complex because they are often presented with plenty of information and jargon that can be difficult to interpret. It is essential for you as a borrower to understand what loan product you are signing up for before you accept the loan.

There are various loan products based on the need that a customer has. Have the lender guide you on the product that best caters to your need.

Understand how the loan product can be used, the requirements of equated monthly instalment (EMI) payments, early repayment options, and other terms and conditions.

It is important to be in the know of the purpose of the loan, and how it will be allocated once issued. You should find out from the lender if you will get the amount upfront or if it will be in installments.

Pro Tip: Before you apply for a loan, get a good idea of its purpose so that you can request the correct loan amount. You can also use an EMI calculator to figure out how much you will have to pay each month and ensure that your cash flows support the repayment.

Bidii Credit is always offering FREE advice and consultation in regards to loans. Contact us today and speak to a financial advisor. We also have a variety of secured and unsecured loans that you can get within a short period of time- From 6 hours

The post Top Mistakes To Avoid When Applying For A Loan appeared first on Bidii Credit Limited.

1. Limited or Inconsistent Cash Flow
2. Not Using a Budget
3. No Preparation for Unforeseen Expenses
4. Not Raising Enough Capital
5. Too Much Debt
6. Neglecting Necessary Reporting
7. Poor Tax Compliance. Many thriving businesses have been closed down by KRA
8. Not Paying Bills on Time
9. Mixing Business and Personal Finances
10. Poor Marketing Tactics

Having said that, there are many ways to start a business in Kenya with minimal focus on logistics and upfront costs and more focus on getting your ideas started. Having worked with business people from diverse business environments in the last 8+ years, we have listed several businesses that we know will work well with KES 5,000 or less budget (appr. $50).

Reselling

Those passionate about clothing, kitchenware, Home appliances and/or sales may consider starting an online resale business. Although it takes time in research, dedication, and an eye for fashion and or homecare, expert in the said field, and some little cash for advertisement (in this case less than 5k), you can start as a side hustle and turn into a full-time resale business. Start a business on IG, FB or Twitter, get your wares from Eastleigh or Gikomba cheaply and resell. You could start by using online store websites Jumia or Jiji to sell your ware, then expanding to your own resale website. Good news is that you don’t have to own these items.

You only need to contact a reputable wholesaler in Eastleigh or Luthuli, strike a deal with them, get permission to list their items on your page and start making sales. When you make a sale, rush to the wholesaler, get the item and resell at a profit. A good 65’’ Samsung TU8000 TV that would fetch Ksh.120,000 on those high-end shops you see in Westlands and Kenyatta Avenue is retailing from only Ksh.99,999 on Luthuli Ave. potentially giving you a profit margin of Ksh.20,000 ($200)!

What could go wrong: Listing a product from a fraud seller, Listing a product without notifying the seller.

What do you loose: 5k advertising fee on various socials

Online Bookkeeping

With good education and knowledge in accounting and bookkeeping, technology allows many bookkeeping services to be performed online. Around June every year, KRA requires businesses and individuals to file returns. Sad news is that many individuals are still ignorant or the process sometimes can be very bureaucratic. That’s good news for you. If you are an accountant or bookkeeper who wants the freedom and autonomy of running your own business, take advantage of modern technology and start advertising some of these services to start your own online bookkeeping service.

What could go wrong: Nothing really. Unless you don’t have knowledge in bookkeeping

What do you loose: 5k advertising fee on various socials

Freelance copywriting or content writing

Again, this will only need advertising on FB and IG. No one will know you without advertising.

If you’re a natural wordsmith with a bit of marketing knowledge, you can establish yourself as a freelance copywriter or content writer. Whether you write blogs, web content or press releases, plenty of companies will pay for your services. Increase your value by using SEO knowledge to help clients craft a strategy around specific keywords that their target audience is already using in their online searches. Most freelance copywriters in Kenya charge Ksh.500 to Ksh.20000, but those with expertise in a given vertical could charge even more.

Freelance copywriting is a great business to run because as long as you have an internet connection, you can work. It’s a business that you can operate from the comfort of your own home, or even from the road if you travel. If you establish a large enough network and gain referrals from satisfied clients, you could even make it your full time job

What could go wrong: Not getting online gigs. That however only happens when starting. Once you establish your customer base, you are good to go.

What do you loose: 5k advertising fee on various socials

Create Digital Products

Digital products include music, courses, and podcasts, youtube channel etc. There are no recurring manufacturing or shipping costs to worry about, and your margins can remain high. This makes it another no-brainer for being one of the best businesses to start.

For youtube channel for instance, you only need to start with your phone camera. Most good phones today have good camera.  As for editing, just because you’re creating videos doesn’t mean you need advanced video editing software (like Final Cut Pro or Adobe Premiere) to edit your content. These software programs don’t necessarily improve your content, particularly if you’re going to be struggling with it a lot during the first few weeks. If you’re new to video editing, you’d do much better with simple programs like Windows Movie Maker or Apple iMovie. These are a lot more user-friendly and are easily downloadable (for free) if you don’t already have them on your computer. As you go along, it may be more challenging to come up with fresh, new content and YouTube channel ideas that will match the hype of your first few videos. But don’t worry—even established YouTube artists go through the same thing every once in a while.

The secret is to look for inspiration everywhere—even when you’re out and taking a break from recording. List down your ideas. Check out other videos and build upon their ideas to make them your own.  Avoid comparing yourself to others and focus on your own channel. As long as you like and enjoy the concepts you come up with, your viewers will sense your sincerity and love for your craft, and this will help pique their interest. While you’re at it, take every opportunity to improve and evolve in other areas. Explore other camera filming techniques, editing styles, and approaches to your presentation.

What could go wrong: Starting a digital product that will not appeal to your audience, creating lousy or poorly edited videos.

What do you loose: 5k advertising fee on various socials

Homecare Services 

A little while ago, a popular comedian Kennar (Crazy Kennar on IG) started a very interesting business idea. He started a platform where you would register to offer home cleaning services at a fee. The platform saw so many students especially from JKUAT and KU signup for the service- very genius idea. He makes a profit from commissions when you request for the services of these. While we dont encourage you to do exactly the same (He’s done his research and he knows why this will work), we have another idea similar to that:

A background in care and hospitality can go a long way to support housebound seniors who require in-home care. It’s also a service for which demand is only going to grow especially in Kenya. The idea is already HUGE in US and Eastern Europe. According to the National Institute on Ageing in the US, between 2010 and 2050, the 85-and-over population is projected to increase 351% globally.

Many will need care and assistance, often in their own homes.  Luckily, you don’t need a background in healthcare to help seniors and grow a successful business at the same time, although those skills will be in demand as well. Many seniors need help with all kinds of tasks, like errands or repairs around the house. With some experience, you could consider growing your business to help seniors transition from their homes to assisted living facilities, offering services such as packing, transporting, setting up, or storing their furniture and possessions.

What could go wrong: Being impatient. Working in this field will need your 100% patience!

What do you loose: 5k advertising fee on various socials

We will be listing 5 more ideas in our next article. So stay tuned and follow us our socials for updates when we do:

Blog: https://www.bidiicreditkenya.co.ke/blog/

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Linkedin: https://www.linkedin.com/company/bidii-credit-limited/

The post Top 10 Small Business Ideas to Start in Kenya- Part 1 appeared first on Bidii Credit Limited.