Samuel owns a bakery where he produces cakes that are sold to supermarkets and schools. The bakery is successful and Samuel is for the moment unable to the meet the increasing demand from his customers. The major bottleneck is distribution. Samuel uses a motorbike for delivering the cakes and its transport capacity is too low to enable an efficient distribution.
The bakery employs around seven people. Samuel is also involved in a project where he helps a group of youth from the church. Samuel has taught the group how to bake cakes that they will now sell to other church members after the Saturday service worship. This will provide a much needed extra income for the group whose members are students and unemployed. Eventually, some of the youth can also be employed at Samuel’s bakery.
In the long run, Samuel has great ambitions. He want to buy land and build a new and larger bakery with more modern machines. A larger bakery would not only increase the production, it will also enable Samuel to use more of his baking skills and produce a wider range of products. Today, Samuel makes wedding cakes and other special cakes on request. With a larger bakery, he could produce these specialty cakes without it disturbing his normal production.
Samuel needs a loan in order to buy a truck. The transport capacity of a truck is significantly higher than that of a motorbike. Hence, Samuel will be able to increase production and meet the demand from his customers. The increased incomes that will follow will take him one step closer to realizing his dream of a larger bakery.
Loan history with CML
|Year||Loan size||Loan term||Repayment history|
|2014||800 000 UGX||8 months||Fully repaid|
|2015||1 000 000 UGX||12 months||Fully repaid|