The rhythm of life is back thanks to the flow of loans

Trial – failure… no less than 1 time, until now, Mr. Tue (Tan Phu district, Ho Chi Minh City) still decided to stick with the coffee business, which is a familiar plant to his family. However, this time, he decided to do business under the franchise model. Profit will come from the cost of franchising and the cost of supplying materials to the points of sale.

For nearly 2 years, the business was affected by the epidemic, this year Mr. Tue set a rather ambitious goal to further accelerate the opening of coffee shops. The number is 200 franchised coffee shops from now until the end of the year.

Businesses can rely on financial resources from banks. (Illustration image – Photo: Investment Newspaper)

The number of points of sale increases, which means that the raw material supply area for coffee must also increase accordingly. Therefore, the business problem now is how to ensure a supply of quality coffee.

“We have to store coffee to ensure the quality of the source. From now to April next year, we must have a certain amount of goods in stock. We sign contracts with farmers, what are the payment steps like? in order to maintain a stable cash flow to ensure smooth operation of the system.Corporate capital is about 50-60% and the remaining 40% is from the bank.Currently we are using bank loan for business. this,” said Truong Tri Tue, Tan Phu district, Ho Chi Minh City.

Bank capital is used by him to invest in a warehouse system to store coffee ingredients until the end of the crop year. The plan to use loan capital effectively must also be carefully calculated.

“The fact that we store goods like this ensures that goods do not increase in price. Currently, we buy this price by the end of the year, it increases by about 20-30%, so we only need to rotate once, we have enough money to pay. We have ways to rotate 2-3 times to ensure increased profits,” added Mr. Truong Tri Tue.

Tue’s further goal is to further develop the F&B segment. Therefore, each plan, whether short-term or long-term, involves the effective use of capital. Because this not only helps maintain profits, but also helps to pay off the output for farmers in their hometown.

Mai Phuong