Financing your entrepreneurial dream without outside funding can make you feel you are in a catch-22 situation. From hiring new employees to set up an office. From developing marketing collaterals for your company to set up operations. Every effort you make is a step to amass a capital that helps you in the expansion. Without an expansion, your business cannot raise enough money and generate revenues. Applying for a business loan in Nigeria is a step to keep your business afloat. Money makes money is an appropriate adage often used in the world of business.
So what do you do? People resort to raising funds through sources they know-family and friends. However, it may not be enough capital and may lead to complications. A business loan is a systematic way to get your business fuelled with the capital that it needs. It provides the vital capital to jumpstart your dream venture. You can start with some seed capital gathered from personal sources before you apply for a loan to expand your business and multiply the revenue. But the bigger picture will always be a business loan in Nigeria.
In this blog we will tell you some ways a business loan can help start your dream:
The primary source of gathering funds is banks and financial institutions. Banks provide funds to a business at all stages. Whether they are starting out or have an established presence, they can seek funds from the bank at an interest rate. Though the interest rate is generally on the higher side, you must do your groundwork before approaching the financial institutions for loans. There are many reputed banks in Nigeria who provide loans in Nigeria and one can find the one place that gives them the funds at the best rate.
SME Loans in Nigeria
GroFin, a development financier, has committed over $500 million to fund Nigerian Micro, Small and Medium Enterprises (MSMEs) across the country. There are many development financiers who have pledged to support small and medium enterprises. Apart from them, there is a social intervention fund, where some money that has been allocated in the budget 2018. The fund is for artisans of micro business owners. Microfinance banks or MFBs provide that give a loan to companies who have an operating account for at least 6 months. One can also fill out a business loan application and seek a loan from institutes like African Young Entrepreneurs (AYE), Leadpath, Shell Livewire etc. Some institutions may also provide assistance via mentorship apart from providing financial aid.
Loans in Nigeria Without Collateral
There are businesses in Nigeria that helps you provide loans without collateral. They can be availed offline as well as online. Some of the online providers of business loans in Nigeria are Grofin, Smedan, Lydia, Aella credit, Zedvance, Paylater etc. Some of them provide loans to the tune of 500,000Naira without a collateral. The digital money lenders utilize psychometry, big data, machine learning and digital forensics for its proprietary credit scoring. The solutions that they provide are simple and fast. This effective way to get funds can be very helpful especially for small to medium businesses.
Dreams are a beautiful way to realize one’s passion. They show us the way. And there are people and institutions who can help you achieve what you want. Financial support helps one attain the confidence and the direction. VConnect suggests you get in touch with the verified business loan institutions and lenders on its website. Not only will they give you detailed information on how to go about it, but will also help you with a lender who gives you the best rate of interest.