Блог / Test

Most entrepreneurs in Kazakhstan were raised with the mindset of «live within your means». Having no debt may seem like a sign of stability. But in reality, excessive caution often leads to stagnation.

While you are saving up from net profit for a new batch of goods or equipment repairs, competitors may capture your market share by using borrowed capital. When used correctly, a loan becomes a tool for scaling.

Abilkassym Abildenov, Head of Project at the fintech company Buhta, explains in which situations borrowed funds can be more beneficial than using your own capital.

Scenario 1: Managing Working Capital Liquidity

This is the most common issue in retail and the service industry. On paper, your revenue may look strong, but in reality, there is no cash available: funds are tied up in inventory, accounts receivable, or prepayments.

Example: A pharmacy chain purchased a large batch of seasonal medications, while payment to the supplier is already overdue.

Benefit: A short-term microloan quickly covers the temporary liquidity gap. The overpayment for using the funds for 10-14 days will be minimal, while you avoid interrupting sales and maintain your reputation with partners.

Scenario 2: Purchasing Equipment to Increase Productivity

If a machine, vehicle, or server capacity allows you to produce or deliver more, a loan for its purchase pays off faster than it may seem.

Example: A taxi fleet owner leases or finances five new vehicles. The additional revenue generated by these cars not only covers the monthly payments but also brings extra net profit.

Benefit: You start earning from the new asset immediately instead of waiting a year to save the required amount. Besides, the equipment may become more expensive by then.

Scenario 3: Scaling on Marketplaces

Sellers often face situations where a product suddenly takes off and inventory disappears rapidly. To avoid missing out on profits and losing ranking positions, the next batch must be purchased urgently.

Example: A store on Kaspi or Wildberries experiences surging demand. However, it does not have enough internal funds to purchase three times more inventory.

Benefit: Borrowed funds help maintain top positions and generate turnover that significantly exceeds the loan interest costs.

Scenario 4: Supplier Discounts for Bulk Purchases

Sometimes suppliers offer significant discounts for full upfront payment or large wholesale purchases.

Example: A construction materials supplier offers a 15% discount for purchases worth 10 million tenge.

Benefit: If the loan interest rate is lower than the discount received, you come out ahead and effectively profit from the difference.

Strategic Reserve: A Credit Line

Another tool businesses often overlook is a credit line. Unlike a traditional loan, you do not borrow the entire amount at once and immediately start paying interest on the full sum.

Benefits for business:

• You receive an approved limit, for example 20 million tenge, which simply remains available in your account.

• Pay for what you use: Interest accrues only on the amount you actually withdraw and use. Once the funds are repaid, interest stops accruing.

• Stay ahead of the game: A credit line should be opened when business is doing well. When a crisis hits or an urgent supplier offer appears, there may be no time left for paperwork and bank approvals.

Conclusion

A loan is first and foremost a mathematical decision. When the return on investment exceeds the cost of money, borrowed capital becomes fuel for growth rather than a burden. The key is to use financial instruments at the right time, because timely access to capital is often what separates stagnation from rapid growth.

Among Buhta’s products is its microfinance direction. We provide unsecured loans for sole proprietors and LLPs ranging from 1 to 55 million tenge for periods from 5 days to 2 years. Thanks to a high approval rate and integration with your business data, this is one of the fastest financing tools on the Kazakhstan market. If your business needs resources for growth, contact us at mfo@buhta.com — we will help you find a solution that pays off faster than the loan itself.