Business loans in Kenya for the food processing industry

The expenditures involved in operating a manufacturing business, particularly in the food industry, can be overwhelming. However, business owners should not get stuck along the way. There are business loan alternatives that come in handy. Read on, as we dive right into it.

Business loans in Kenya help any manufacturing business to upgrade its operations. The loans help buy new machinery or retool your factory with the correct financing solutions. It helps maintain the liquidity needed for day-to-day operations.

What does food processing mean?

Any technique utilised to change a food item from one form into a form is food processing. The end product is food recognizable in our neighbourhood grocery store.

Food processing converts freshly raw ingredients into consumable, universally adored food products.

Contrary to popular belief, food manufacturing is relatively easy. It might be as easy as making a batch of cookies in your kitchen. Or as complicated as taking fresh fruit, drying it with freeze-drying, and packing it at a food processing facility.

Do small businesses in the food processing industry need funding?

Lack of funding is the main hindrance to entering the agro-processing sector. The food manufacturing business loans in Kenya enable firm owners to meet all their primary daily operations. The loans help deal with business demands. As a result, the firms generate revenue from their inventories or equipment.

The country attempts to expand the food manufacturing sector through the available business funding facilities. More equipment is required to carry out value addition of the country’s produce. However, upfront capital expenditure frequently poses a problem for a small or large firm.

Almost every firm needs funding to expand

The food manufacturing industry is not a tiny venture. It requires a lot of capital.

As a rule, the borrowing business needs a track record of meeting the funding criteria. This is checked to qualify for the traditional financing offered by financial institutions.

Food security and the impact of the food processing sector on the society

The food manufacturing industry plays a significant role in increasing food security in the Kenyan market.

The Food & Agriculture Organization (FAO) identified key factors contributing to food security.

They include the foundational elements of:

  • Accessibility
  • Utilisation
  • The stability of the environment in which they operate.

Food processing has the most significant multiplier effects within the food value chain. How well the food processing company is doing influences the creation of plentiful, high-quality, nutritious, and safe meals. The meals should be easily accessible and reasonably priced for consumers. Therefore, funding in this country comes in handy to boost the firm’s operations.

Food processing is essential to preventing losses after harvest. It bridges the gap between seasons. It helps make the most of the crop harvest, particularly in droughts and low output.

Beyond just producing food, the food manufacturing industry helps the economy. It fosters the growth of related businesses. It also encourages the construction of helpful infrastructure.

The industry is the largest employer in the manufacturing sector, a significant market for farmers, and a source of consumers’ essential finished goods.

The above explains why adequate funding is critical. The good news is, business loans in Kenya are fairly simple to access.

Business loans available in Kenya for a food processing industry

The food processing industry must have enough funding to ensure operations go smoothly. It’s critical to understand the available business loans in Kenya.

Food Processing Industry Business Loans

You can access a business loan in Kenya for a food processing company. The source could be conventional business financing from a big or small bank, credit union, or community lender.

For bank loans, rates begin upwards of 14.5% p.a. However, a food company can anticipate lengthier maturities, ranging from 3 to 30 years.

There are many ways a food processing company may utilise business loans in Kenya:

  • Buy commercial real estate for use by the business and also rent.
  • The businesses can refinance their facilities to produce food at a reduced rate.
  • The business owners can make improvements to the company.
  • Buying company business equipment
  • Raising operating capital.

Business Partners International Kenya – for business loans in Kenya

Business Partners International (BPI) Kenya is a great resource for business loans in the Kenyan food processing industry. The lender makes it possible for business owners to easily access funding.

The loan limits offered by Business Partners International Kenya range from 10 million to 100 million Kenyan shillings.

Business Partners International Kenya has provided business loans in Kenya since 2006. They have provided funding in excess of US$131 million across the region to business owners. This comes in handy for food manufacturing established firm owners.

Business Partners International Kenya has a reputation for comprehending the difficulties faced by business owners. Compared to most service providers for business loans in Kenya, BPI takes on more significant risks to finance seasoned business owners. Business finance, property financing, and non-financial services are among the main competencies of BPI (including technical assistance and mentorship).

Is your company looking for funding tailored to the food manufacturing industry?

Business Partners International Kenya tailors the finances to meet each company’s unique needs. It negotiates pricing and repayment terms with the company. Business Partners International doesn’t just look at security, as demonstrated by your company’s financials. The company is renowned for its in-depth understanding of the food processing industry’s needs. It has customised loan packages specifically for firm owners.

Business Partners International Kenya assesses the borrowing company. It checks the firm’s viability. It also engages with the company owner to understand the industry’s potential.

Are you in the Kenyan food processing industry?

Business Partners International loans in Kenya are your go-to financier.

Contact Business Partners International through the website application portal and get that needed funding!

About the Author: Debbie D'Costa