In the latest installment of Uganda's Business Recovery Series 2023, renowned banking professional Shem Kakembo, the Managing Director of EFC Uganda Limited, took center stage to shed light on the critical topic of "How to Become and Remain Credit Worthy." The Zoom webinar, held on May 11, 2023, aimed to equip business owners with the knowledge and strategies needed to navigate the economic challenges posed by the ongoing Covid-19 pandemic.
Shem Kakembo's impressive background in banking and finance, which includes international experience in countries such as the USA, Rwanda, Indonesia, and Uganda, set the stage for an insightful and informative presentation. With a strong passion for both banking and entrepreneurship, Kakembo's expertise aligned perfectly with the goals of the Business Recovery Series.
Throughout the webinar, Kakembo delved into the fundamental importance of creditworthiness and explored various aspects associated with it. He highlighted the criteria used by financial institutions to assess creditworthiness, such as the timely repayment of loans and involvement in viable and legal business ventures. Additionally, Kakembo emphasized the role of credit ratings in determining credit eligibility, further underlining the significance of maintaining a solid credit profile.
The presentation also addressed the internal analysis conducted by banks, including the examination of credit reference bureau records and the assessment of a business's viability and legality. Kakembo underscored the crucial role of deposit intermediation in banking, where short-term deposits are leveraged to provide long-term finance through term loans. Risk assessment and trust emerged as key factors in the banking and lending process.
Exploring the decision-making process employed by banks when extending credit, Kakembo outlined the importance of cash flows, profitability, character, credibility, capital, capacity, and collateral. He stressed that positive cash flows often outweigh profitability for banks, as they prioritize lending to businesses with consistent cash inflows, even if they are currently facing losses. The significance of personal and business credibility, as well as the ability to provide collateral, was also emphasized.
The webinar concluded with attendees gaining valuable insights and practical advice on how to enhance creditworthiness. Kakembo provided actionable recommendations, including saving and building a track record, maintaining proper financial records, formalizing businesses through incorporation or registration, managing growth and expenses wisely, and maintaining open communication with lenders during challenging times.
The webinar received high praise from participants, who commended its relevance and applicability in today's dynamic financial landscape. By implementing the strategies and understanding the factors that banks consider when lending, attendees gained a competitive edge in their pursuit of creditworthiness.
Shem Kakembo's extensive knowledge and experience brought credibility and depth to the discussion, empowering entrepreneurs and business owners to navigate the world of credit and achieve their financial goals. The webinar served as a valuable resource in GEW Uganda's Business Recovery Series, contributing to the promotion of financial inclusion and growth within the banking sector.
Overall, the Zoom webinar proved to be a resounding success, equipping participants with knowledge and practical tips to become and remain creditworthy. With the guidance of industry experts like Shem Kakembo, entrepreneurs can confidently navigate the credit landscape and unlock opportunities for sustained business growth.
Attendees left the session armed with the necessary tools to establish and maintain creditworthiness, ensuring a strong foundation for their businesses in today's challenging economic climate.
