‘Failure to repay loans not good for business’

JMAAC Financial Services says failure by most business communities to pay back loans will continue to hinder the creation of a sustainable financial system that will contribute to poverty alleviation and economic growth.
The lending institution, which was launched in September last year, targets the formal and informal sectors, small-scale farmers and marketeers, and now plans to expand to minibus and taxi drivers.
Company chief executive officer Musanchi Simbeye said the importance of access to finance cannot be overlooked as it plays a critical role for entrepreneurs to grow their capital and income base.
In an interview on Tuesday, Ms Simbeye said despite the benefits that come from accessing finance, it is unfortunate that most entrepreneurs still have a mind-set of not repaying loans.
“Most entrepreneurs face challenges in accessing finance, but as far as they are concerned for them to grow their business enterprises, they [entrepreneurs] need finance to start up, expand and diversify their trading areas and once they obtain loans from financial institutions, most of them do not want to pay back,” she said.
Ms Simbeye said continuation of non-repayment of loans affects the future access to finance among the business communities in their quest to reduce poverty.
She said the launch of the lending institution is aimed at bridging the gap by providing financial assistance to marketeers, and that it is imperative that they pay back the money on time to enable others benefit.

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