Business urged to offtake private equity to lessen cash flow problems...as banks get cautious with credit
February 12, 2018, 5:48pm
With business cash flows currently under pressure, repo rate high and banks cautiously extending credit, businesses have been urged to break from traditional borrowings and embrace private equity for growth.
“Although credit has been limited, there are other alternative instruments in the market that I would encourage business people to explore more such as private equity which provides capital for business growth,” says managing director for NamPro Fund Kaunapaua Ndilula.
She adds, “But that obviously imply that as business people, we have to think about business ventures that are more contributing to growth and get out of the comfort zone under which we have been doing business in this country.”
Last year was characterized by a downward trend in terms of consumer and business credit, although experts expect the situation to normalize this year.