1. Should the loan funds given to the winners be paid into their business bank accounts or can they be paid to their personal bank accounts?

It is ideal if the winners are able to set up a business account before the loan capital is provided to them. By setting up a separate business account you have clearly established a separation of the businesses capital from that of your own personal needs. This separation of the business’s needs from your personal needs is critical to enable business the chance to succeed. We do however understand that banks often have substantial transaction charges and as such some of you may want to just hold funds in cash. If winners can clearly illustrate to us that they truly will keep their business funds separately from their personal needs we will consider giving them the loan capital without setting up a separate business account. They should however remember that setting up a separate business account will make it much easier for the business person to be able to keep the businesses monies separate from their personal funds.

2. Should all loans be paid back over a period of 12 months?

Not all of the loans are necessarily paid back over a period of 12 months. The loan term is actually determined when establishing the business model for your business idea. We have found that most small enterprises are capable of making the loan repayments within 12 months, however loan terms typically can range from as little as 3 months to as long as 3 years.

3. What if the borrower fails to pay back the loan on time?

We have found that the failure of meeting your loan repayments usually falls into 2 categories:

the business is not doing as well as anticipated and hence cannot pay back its loan on time    OR

the business owner is ‘cheating' in some way. The most common mistake is that they are taking more funds from the business than the business can afford to pay. This means that they are not separating the business requirements from their personal requirements. Sadly this means that the business owner is destroying or ‘cheating’ their own business and hence their own future.          or

the business owner is simply stealing the money. This again destroys their own future as well as damaging the entire Miss Career Africa Program

It should be noted that whilst the loans are not secured, you will be required to sign a loan agreement. Hence repayment of the loan can be enforced if we find deliberate ‘misuse’ of the loan funds provided.