Browsing by Author "Kasambula, Geoffrey Raymond"

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    Accessibility of financial resources to small contractors a case study of Dar es Salaam contractors
    (University of Dar es Salaam, 2014) Kasambula, Geoffrey Raymond
    In Tanzania most contractors in the lowest classes of registration lack adequate capital which would otherwise enable them go for large and lucrative works within their class limit. This study examines the criteria used by the commercial banks to evaluate small contractors’ loans applications. Specifically, the study looks at the eligibility of small contractors to access such loans and the common weaknesses hindering the access of credit for the group. A quantitative method was adopted for two different sample populations; commercial banks officers and small contractors (class VI and VII). Data were collected by questionnaires to all registered commercial banks in Tanzania and by telephone interview for the registered small contractors that are based in Dar es Salaam. Results established that small contractors’ loan repayment ability depend on their clients, and so bankers would often consider the borrowers’ clients when deciding issue of loans. It was further established that the banks would only consider loan applications of small contractors who have audited financial statements, clear purpose of the loan and bank’s knowledge of the small contractors business. However the contractors are only comfortable with the audited financial statement criterion. The information gathered by bankers about small contractors business may greatly help the banker in assessing risk associated with lending proposals. It was therefore established that commercial banks offer credit up to 14% of applications of small contractors.