Personal expenses

Development Bank of Namibia loans must not be used for personal expenses. In the Bank's experience, owners who use working capital for personal expenses (drawings) will not be able to cover budgeted business expenses and are likely to have failed enterprises.

Loans for working capital are paid into business accounts. An owner’s salary must be budgeted in terms of the cash flow projection in the application for working capital. The salary must be paid from the business account into the owner’s personal account.