The Business Owner Who Received a Loan Guaranteed by CGCC
December 1, 2023Understand Credit Guarantee
Agriculture is one of the key sectors in supporting Cambodia’s economic growth. Seeing the potential to promote Cambodian products and support Cambodian farmers, I decided to start a Cambodia Safety Vegetable Union of Agricultural Cooperative in 2021.
When starting this business, my main challenge was the lack of human resources to prepare documents and handle administrative work since most of the community union members were farmers. Another major challenge was the lack of working capital to expand the business and product exports. The solution for me was a loan from a financial institution.
At first, because my collateral was not enough for the loan, I could not obtain the necessary loans to support my business. However, later with a guarantee from CGCC, I was able to receive a sufficient business loan from Chamroeun Microfinance Institution. I used the guaranteed loan as a working capital, which allowed me to grow my Cambodia Safety Vegetable business to serve my customers and distributors in many provinces and cities on time. I also gained the trust of various development partners on my business.
Obtaining a guaranteed loan from CGCC depends on the potential of my business, namely the possibility of growth, building a good credit history, as well as completing the required documents that can confirm the need to use a loan for my business. Other business owners who need capital but lack collateral can also seek credit guarantees from CGCC through CGCC partner banks or microfinance institutions.