Precious has requested a loan of $500 to order more cloth. She needs to buy the raw material in bulk so as to cut costs instead of buying in smaller quantities. The price for a roll of cloth costs around $120, which is much cheaper by at least 30 percent than when buying in smaller quantities. She says the extra income generated as a result of this loan will allow her to increase business capacity and fulfill outstanding orders. This will also enable her to operate profitably on the finished products when pricing them. In the future Precious plans to open a bigger factory as well as a shop selling her products. She also intends to purchase modern machinery for use in the business, which will improve turnaround time.
About MicroKing FinanceMicroKing's loans are guaranteed against institutional default (failure of MicroKing to repay Kiva lenders if the borrower repays MicroKing) by MicroKing's parent company: Kingdom Financial Holdings Limited.
More About MicroKing
This loan is administered by MicroKing Finance, Kiva’s first partner in Zimbabwe.
MicroKing’s mandate is to provide financial services integrated with advisory services and targeted training to the under-banked but rapidly growing Zimbabwean micro-enterprise sector. The intent is to mobilize the underprivileged as active agents in fighting poverty as well as to accelerate the country’s journey back to economic prosperity where Zimbabwe was once known as the “bread basket of Africa.”
Zimbabwean micro-enterprises are generally run by women and comprise a multitude of business types. Constraints on local production and manufacturing capacity have led to cross-border trading being the most common type of business.
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