Page 1 of 2 12 LastLast
Results 1 to 10 of 11

Thread: My Khula Story...

  1. #1
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts

    My Khula Story...

    3 1/2 months ago I decided to go to Nedbank to apply for a start up business loan. They told me that we have to do it with Khula. So I presented them my business plan, which is in their opinion very well researched and highly professional. The business banker there told me he is impressed by it and is positive that he can help me.

    When we went through the check list we found out that you have to be SA citizen to be able to apply for a Khula loan, which I am not. Isn"t a problem though, because my girl friend and partner in this business is SA citizen, so we applied in her name, as the business banker suggested. He told me it will take about 2 weeks to get a response. So I waited, nervous but patiently, 2 weeks, 3 weeks, 4 weeks, 5 weeks, 6 weeks, 7 weeks.... after 2! months he had the first repsonse from Khula. Which was following: (more or less)

    "business plan is very well researched and professional (again), bla bla bla, we need the following information: CV of my girlfriend (remember, we had to apply in her name), balance sheet and a letter of intent from 1 future client"

    One week later I went back to the bank with the CV, balance sheet, a letter of intent from a distribution company with more than 1000 clients all over SA, more than 500 are their own branded, specialised retail stores, that all supported by a 2 page motivational cover letter, again presented in a very nice way. The business banker was happy about that again, said this letter of intent is great, the CV shows all the necessary requirements, bla bla bla.

    Another 2 weeks later the response from Khula, which was following:

    "Bla bla bla, we can see the intention from company X to buy so and so much stock every month, bla bla bla, however this does not guarantee that they will reach the forecasted sales. Besides that we can see that there is experience in sales, but not in importing. The import process is very complicated and needs lots of experience and expertise"

    Huh?!? First they ask for a letter of intent and now as they have it they are not happy with it? What is going on here? This company that wrote the letter is one of the biggest distribution companies of it's kind in SA. He even wrote that they will support us in every way with their own distribution channels (which was planned from the beginning). But this is not the only company, there are 2 other companies (you all know them but I'm not mentioning it now), and 2 specialised distribution and sales agencies. Besides that this business has many more distribution channels, which are all supported by a well planned marketing plan. Oh, and btw, the purchase quantity of only this client covers 95% of the needed sales quantity to break even.

    Import process? I though what da **** is wrong now??? Paying and receiving the products isn't that complicated, is it? What kind of person has written this nonsens? They said there is sales experience but no import knowledge. Hello??? The CV that I submitted says clearly that my gf was importing and distributing stuff overseas for 3 years!!! Isn't that enough?

    After this the banker asked me to write a latter again, which I did. A 2 page motivational letter which explains all those things. Knowledge, me as a mentor (and I definitely do have enough business experience), marketing activities that reach more than 500.000 people in the first month, bla bla bla.
    The business banker read it, agreed with all the things, submitted it, and asked for a second opinion of another assessor, because he doesn't agree at all with what is happening here. I provided EVERYTHING they asked for and we have ALL the necessary requirements.

    That was the last thing I did, 2 weeks ago. I am trying to reach the banker for 3 days already, no response. I had him on the line for a second on Monday, he said he has some news but clients, he will call me this afternoon. Ya sure, since then I tried to reach him I don't know how many times.

    So, I am giving up at this point. The last couple of months have been the most nerve wrecking ones in my life, and I just don't want to proceed anymore. I am sick and tired of all this s*** that is going on here.

    I DO know that this business will be viable and I DO know that it is planned very well. The product is just amazing, there is nothing similar on the market. And people DO need it, that's a fact.

    It seems to me that they just don't feel like giving the loan and now they come up with ridiculous things. I am NOT saying what I think why they don't want to give it.

    Sick and tired
    Last edited by Wolf; 06-Aug-08 at 07:26 PM.

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    @ ExoPacific - you've got to keep on keeping on, my friend. Winners never quit and quitters never win. You know in your heart it's worth it to make it happen. Don't stop until it does.

    We have all this wonderful, humane legislation when it comes to hiring and firing, giving and collecting credit, providing information to would-be litigants, the list goes on. And yet a highly touted government initiative to enable new business can treat its clients like dirt.

    I wonder how many other Khula stories like this are out there...

    If there is a problem, it needs to be exposed. For everyone reading this, if you know someone who knows someone who has also been tortured like this, please give them a nudge to put up their story.
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts
    @ Dave

    I totally agree

    But the story isn't finished yet. So after I submitted the last letter and I finally made it to reach the banker, which is probably more difficult than getting a president on the line, Khula came back with another couple of questions, which are actually all answered in the business plan already. Funny question like: why is the product not being imported yet, what if someone else then directly goes to the manufacturer (huh, don't they know what exclusive rights means?), and so on. Silly questions in my opinion.

    But okay, so I sat down and wrote another letter, number 3. Again a 2 page letter which explains everything AGAIN. This was 10 days ago and I of course still don't have a reaction yet. We will see what's gonna happen. If they come up with a NO after 4 months I'm gonna have a big freak out. This is the most ridiculous thing I ever went through.

  4. #4
    Suspended
    Join Date
    Oct 2007
    Posts
    2,346
    Thanks
    0
    Thanked 254 Times in 209 Posts
    just dont give them tooo much info...they might decide to sell off the idea to someone else.

  5. #5
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts
    How sick is it actually that one must think the bank could steal and sell someones idea? A business plan is a confidential document. If something like this would happen I would go every necessary step to assert my right.

    If they really decline this application I am very curious for what reason because we meet all the requirements. Besides that, how do they wanna justify a decline after 4 months since I responded to every single question they had positively and auspiciously?

    My nerves are all on the edge already.

  6. #6
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    It could be what is known as the slow no... It seems they have not found any specific grounds to decline the application, but they're not that keen on approving it either.

    The question is what criteria haven't you met that they are not willing to disclose?
    Or is it as simple as incompetence on their part?

    It also could be a budget priority issue. Ultimately, it will take a few more Khula stories to see if there are any common denominators.
    The trouble with opportunity is it normally comes dressed up as work.

  7. #7
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Things turned around a little bit today.

    After I found out today whats going on the banker called the responsible lady to check my last letter. After that she sent him a response which says that they would like to see a confirmation of the manufacturer that we get the exclusive rights for South Africa. The owner of the company overseas is already busy setting this confirmation up. The banker said that the whole things looks very good for me.

    And you are right Dave, there are very slow. There is no criteria that we don't meet. But I don't care if they are slow as long as they don't come up with a NO after 4 months.

    I am quite excited today because it actually looks like that all my effort will be rewarded.

  8. #8
    Full Member
    Join Date
    Mar 2008
    Posts
    84
    Thanks
    0
    Thanked 0 Times in 0 Posts
    As things turned out it wasn't Khula who was so slow. It was Nedbank itself. But after talking to some people lately, they confirmed that 4 months for a business loan application is actually not too bad for South African circumstances. Either way, I got the business finance from them and I am very excited about it.

    Thank you Khula, and sorry for my wrong statement.

  9. #9
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    So Khula came through! Great news that you got there in the end, ExoPacific. Well done!
    The trouble with opportunity is it normally comes dressed up as work.

  10. #10
    Suspended
    Join Date
    Oct 2007
    Posts
    2,346
    Thanks
    0
    Thanked 254 Times in 209 Posts
    good for you it sounds like you have done your homework ...and your bussiness is going to be a huge success..

Page 1 of 2 12 LastLast

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •