Paying Installment loan on time

 Written by: Hesamuddin Hamdard

Small business transactions depend on the agreement of the parties. Some businessmen take benefit from installment loans. The rule of installment varies between the parties; some of them pay the installment loan once or some of them twice a week.

Some businessmen do not pay the installment loan on time and this issue might cause some problems between them.

AEPO’s writer/producer has talked to Muhammad Jamil, who has a second-hand shoe shop in Kabul city.

Muhammad Jamil says about his business, “I have spent about 300 thousand Afghanis on my shop but this amount is not enough for a big shoe selling shop. As I bring second-hand shoes from a wholesaler and I pay him some amount in cash and some in installments.

We sign an agreement at the beginning that how much goods can I borrow and how much money I should pay him weekly after selling the goods. Paying money in installment on time increased my credit with the wholesaler and I can bring more shoes and different varieties from the wholesaler, my customers are also increased.”

Customers Taste and Production Changes:

Those who have manufacturing companies and if they make changes in their products according to the taste of customers, they will always be successful and never be bankrupted.

AEPO’s writer/producer had a trip to mazar-e-Shari city, Balkh province and there she had talked to a woman, Parasto Babur, the owner of the baking company in Mazar-e-Sharif city. Parasto says about her business,

“I started to back cookies, cakes, cream rolls, and some other sweets about 4 years ago at home with the help of some other women. At the beginning, when we started our work, our products were simple and didn’t have a good market and they did not trust in ladies’ services. Later, we visited some other bakeries and learned how to bring changes. After bringing changes in our products, more customers order and thus our customers increased.

Once we took our products to an exhibition and we had a good sale in that exhibition and people liked our products.
We did not have machinery at the beginning, but now we have it. We have signed contracts with supermarkets and they buy our products.
Before we were producing about 35-40 kilograms confectioneries but now, we produce about 80-90 kilograms.”