If you run a business in this country and want to grow quickly, you may need to access business loans in Nigeria. Also, if you are looking at starting a new business but don’t have the capital, you may consider SME loans in Nigeria.
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Firstly, what you want to do is consider the options available to you. Most people think of banks immediately. Bank loans could be exactly right for the standing and reputation of your business but there could also be other options more suited towards your business. We’re going to explore three options when you’re looking to secure business loans in Nigeria — and yes we will start with bank loans.
SME Loans in Nigeria: How to Get Business Loans in Nigeria
- Bank Loans
Banks are usually willing to give out business loans in Nigeria. That said, they have very strict conditions and requirements that must be met. A lot of people who apply are not successful because they have not been able to meet the bank’s conditions. Before you apply for business loans in Nigeria with a bank, make sure you have a tight handle on some things. Respectable experience in your field, a good credit score, a very good business model, comfortable profit projections for the business, proven business management are all things the bank will look at. The interest rates for bank loans are usually high so do a good amount of research on the bank you are applying to. Study the loan agreements carefully to make sure you are comfortable with what your business can produce and the payback time frame.
- Loan Service Providers
Loan service providers give business loans in Nigeria to SMEs in form of quick loans, and there are many of them that give SME loans in Nigeria within a short period. Bank loans take a long time to process so if you need a short-term loan you could use one of these services. They usually cover a duration of three to six months. A few of these loan service providers that give quick business loans in Nigeria are Payday loans, Paylater, FINTECH, Quickloans and others.
- Government Funds and Schemes
A lot of people are not aware that there are few Government funds that offer business loans in Nigeria with very low-interest rates. Funds like Lagos State Employment Trust Fund (LSETF), YouWin, Bank Of Industry and many others are Government initiatives set up to help small businesses. They offer loans to starts and already existing businesses to stay above board. A lot of these schemes collaborate with banks to make business loans in Nigeria easier to acquire. Remember the interest rates are very low and they are available to a lot of businesses so you have to keep close tabs on these initiatives as you will face significant competition from other businesses.
Take time to look at all the options of business loans in Nigeria available to you. Your business will be better served by getting a loan that is suited for it.