Loan expands family business ensuring brighter future
Zarik Grigoryan, 44, is proud that the number of her customers is increasing weekly, as their store is becoming more popular in Sisian town, in southern Armenia. The shop offers a variety of foods, groceries as well as other household items. The family was able to significantly promote its business after taking a loan from World Vision’s microfinance institution in Armenia, SEF International, in December 2009.
We could hardly make ends meet, and used the limited working capital just to purchase the minimum amount of goods for the store“Our family was running a small shop since 2003”, explains mother Zarik. “Nevertheless, during the subsequent years we were not able to expand our business activities tangibly. We could hardly make ends meet, and used the limited working capital just to purchase the minimum amount of goods for the store”.
Their three children were growing and so were their various needs, significantly increasing the household expenses. In this remote, impoverished region of Armenia, employment opportunities are rare and running even a small business is a tough task. Thus, after some hesitation the father of the household, Andranik Sargsyan, 45, decided to apply to SEF International for a business loan. “Without any complications SEF international approved our application and we got the loan in December 2009”, elaborates Zarik. The loan is re-paid on a monthly basis over 48 months, with 22% annual interest.
Andranik started to increase sales and renovate the shop. They also built a new annex to the building and diversified the range of goods. “Several months later we had almost a new store”, shares Zarik. “Thanks to the loan, we have considerably multiplied the variety of our goods, constructed a meat-department and new warehouse. We have also completely renovated the whole shop, making it more appealing for the customers”. Thanks to the loan, we have considerably multiplied the variety of our goods, constructed a meat-department and new warehouse. We have also completely renovated the whole shop, making it more appealing for the customers
The income generated from the store has already started to increase substantially. “First we were afraid we couldn’t pay 22% of interest annually, but now the income is enough not only to pay the interest and main sum, but also to allocate enough capital for our growing trade and commodity circulation,” says Zarik. The expansion of the store also solved the issue of employment for the eldest daughter in the family.. Anna Sargsyan, 21, has recently graduated from college and now works as an accountant in the shop.
“After the loan and business expansion our family is living much better”, explains Anna happily. “We have been able to pay my siblings’ tuition fee for this year and are confident they will graduate from university without financial problems”.
“We have serious plans for the future. A part of our income will be spent to renovate our old house and we intend to add a couple of new departments and to reconstruct another small shop just next to this one”, shares Anna, an upcoming businesswoman. “Because of this loan and our expanded business, we have become much more confident for our future, our family, our prosperity and our business perspectives”.
We could hardly make ends meet, and used the limited working capital just to purchase the minimum amount of goods for the store“Our family was running a small shop since 2003”, explains mother Zarik. “Nevertheless, during the subsequent years we were not able to expand our business activities tangibly. We could hardly make ends meet, and used the limited working capital just to purchase the minimum amount of goods for the store”.
Their three children were growing and so were their various needs, significantly increasing the household expenses. In this remote, impoverished region of Armenia, employment opportunities are rare and running even a small business is a tough task. Thus, after some hesitation the father of the household, Andranik Sargsyan, 45, decided to apply to SEF International for a business loan. “Without any complications SEF international approved our application and we got the loan in December 2009”, elaborates Zarik. The loan is re-paid on a monthly basis over 48 months, with 22% annual interest.
Andranik started to increase sales and renovate the shop. They also built a new annex to the building and diversified the range of goods. “Several months later we had almost a new store”, shares Zarik. “Thanks to the loan, we have considerably multiplied the variety of our goods, constructed a meat-department and new warehouse. We have also completely renovated the whole shop, making it more appealing for the customers”. Thanks to the loan, we have considerably multiplied the variety of our goods, constructed a meat-department and new warehouse. We have also completely renovated the whole shop, making it more appealing for the customers
The income generated from the store has already started to increase substantially. “First we were afraid we couldn’t pay 22% of interest annually, but now the income is enough not only to pay the interest and main sum, but also to allocate enough capital for our growing trade and commodity circulation,” says Zarik. The expansion of the store also solved the issue of employment for the eldest daughter in the family.. Anna Sargsyan, 21, has recently graduated from college and now works as an accountant in the shop.
“After the loan and business expansion our family is living much better”, explains Anna happily. “We have been able to pay my siblings’ tuition fee for this year and are confident they will graduate from university without financial problems”.
“We have serious plans for the future. A part of our income will be spent to renovate our old house and we intend to add a couple of new departments and to reconstruct another small shop just next to this one”, shares Anna, an upcoming businesswoman. “Because of this loan and our expanded business, we have become much more confident for our future, our family, our prosperity and our business perspectives”.
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