Sapa: Loans & Advances
Hello people. How was the week? Not too stressful I hope. It's always important to keep a good balance between work and rest.
We are still on our discussion on Sapa Loans and Advances.
We are still on our discussion on Sapa Loans and Advances.
So, how does one make the decision regarding which of these credit options to use? There are basically 2 classes of credit seekers - individuals and businesses. Individuals typically need credit facilities for personal or other purposes (rent, school fees, family income, medical expenses etc) while businesses need credit facilities solely for their businesses. They may want to expand, purchase machinery, inputs, raw materials and so on.
An individual may take either option depending on his/her needs, employment status etc.
An employee can request for an advance from his employer against a specific purpose or take a loan from an MFI regardless of his/her employment status
An employee can request for an advance from his employer against a specific purpose or take a loan from an MFI regardless of his/her employment status
A business may do the same only in their case, they are either taking an advance against or backed by their future expected sales or taking a loan over a longer period for any number of business needs
