For small business owners, one of the biggest challenges in getting your business out there is in acquiring a business loan. Here’s the thing, getting a loan is inevitable because you’ll need it for the recurring costs, payroll, inventory and office running costs. So it is important you get it right so your loan application isn’t denied.
In this post, we’ll be showing you how to get a business loan in Nigeria, where you can get a loan and what you need to get accepted.
Loan for Startup Business in Nigeria
Here are the options you can visit when sourcing for a small business in Nigeria
1. Government SME Loans
A government SME loan is the first on our list because it is the perfect option for small business owners. Usually, the government through funding programs identify small businesses and grant them loans to jump-start their company. An SME loan can either be given as a grant or an actual loan. This loan is paid back with zero or minimal interest.
Some of these loans include Npower, YouWin, BOI and Tony Elumelu Entrepreneurship Program amongst many others. You can check out any of these websites to find out more about getting loans.
As financial institutions, banks are obligated to provide loans for businesses and customers. The catch is that they require collateral and their interest rates are a little high. It is unlikely that you’d get a bank loan without interest.
Loan conditions vary for each bank. So it’s essential for you to research what their rates and conditions are. You’d be required to show some company information and projected returns. This is to determine if and how soon you’ll be able to repay the loan
3. Digital Apps
With the advent of fin-tech, several loan service providers have sprung up to offer short-term small business loans. Now you can request for a loan and get approved within 24 hours. This short-term varies from anywhere between 3-6 months. Due to the nature of this type of loan, there’s usually a limit to how much you can access or request. However, it’s perfect for quick and urgent needs.
And that’s it for today. What loan option will you be considering? Do share this post with your business friends and colleagues.