Photo: Photo: Ibrahim Sejfovic
Grand puts USAID-financed equipment into operation
“USAID taught us how to run our business, calculate business expenses, design marketing strategies, and use advertisement as a tool for reaching potential customers.” - Drago Bilic, entrepreneur
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"We realized the only solution for returning our company on the path to success was to contact USAID," says Bilic. Applying for a USAID loan was relatively easy. A potential borrower would submit a loan request to an agent bank which would forward this request to USAID with its recommendation. USAID then analyzed the applicant’s credit and submitted a loan recommendation for approval. Following approval, the interested parties would sign a loan agreement, register the collateral, and put the funds at the borrower's disposal.
Free business consulting services were offered to loan recipients. In addition to educating the owner on how to run a business, consultants provided instructions on managing finances and sound methods for building and preserving relationships with customers. In 1998, Grand received a loan for KM 300,000 (approximately $176,000), which Bilic used to purchase a drying kiln, boiler room and wood processing equipment.
Through a combination of hard work, persistence, and USAID assistance, Bilic succeeded in rebuilding Grand into a thriving business once again. USAID's loan and consulting services sparked drastic changes in Grand's operations. The company obtained two subsequent loans which enabled Bilic to hire eleven additional employees, bringing its total workforce to seventeen.
Today, the firm is one of the region's top exporters, sending 90 percent of its wood furniture products to Italian, German, Swiss and Croatian markets.
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