How To Get Loan Of N50,000 To N5,000,000 Business Loan In Nigeria For Your Small And Medium Business
Today, one of the major challenges of business is capital. Getting to obtain this capital has always been a big challenge for organizations both small and large. When the capital is obtained, problems like Collateral and profit requirements come into play. On the contrary, getting a big loan may not be a function of how much you may earn. Some people do receive a large chunk of capital and end up mismanaging it causing them to suffer loss. The scope of this article would cover the topic – How to Get Loan of N50000 to N500000 Business Loan in Nigeria for your Small and Medium Business. Below are some ways you can get the loans:
Access Bank
Access Bank can offer you a loan of up to N5,000,000 when you request one. Access Bank has designed loans of different ranges for small and medium-scale businesses looking to boost their business. Apart from loans for businesses, they also have loans for individuals. Those who haven’t gotten access to loans from CBN can make use of Access Bank services. To match its reputation, banks have tried to emulate its services.
Access Bank offers a different range of loan options as stated earlier. Businesses have different services which include: Time loans, Mortgage Loans, Asset Financing, and others. What you need to do is to read up on Access Bank’s terms and conditions. Get yourself familiar with their Requirements and Apply.
Through Grants
Grants are one of the ways to get funds to start up your business. However, most times. Grants by the Government are very useful when dealing with a project requiring large capital. Also, Grants are given to finance a research-related project or activity. So, if you are interested in setting up a business that is research related or will solve an immediate economic need, this opportunity is for you.
Grants as we know are mostly given by Government. Very rarely, you would see Grants offered by private bodies. What is common to both sectors is that they often need something convincing and project worthy that would generate cashflow shortly. Examples of Grants include STTR which is an acronym for (Small Business Technology Transfer) and also SBIR(Small Business Innovation Research).
Guarantee Trust Bank
Often called Gtbank. Gtbank has been known to always support small and medium-scale businesses. Throughout the years of service of Gtbank, it has offered an array of services to business owners. These include overdrafts for business, asset financing, and a lot more. The array of capital-intensive prospects makes it easier for people to start a business. Although, possessing personal loan services, Gtbank also offers bank services to individuals and organizations. However, before you proceed just like any other platform you need to look at their requirements and conditions before accessing their service.
Venture Capitalist
A Venture capitalist is a person who like an investor provides capital to small or medium businesses who have an high growth trajectory in exchange for their stake in the company or business. A Venture capitalist could help your business by funding a start-up business and when they see your growth potential they would offer you high capital that could range from N50,000 to N5,000,000.
As a business owner, your Venture capitalist investor would have a stake in your business. So, when you make a large profit, there should be a provision for the cost of capital. Venture capitalists often focus and invest in specific industries and companies that ve the potential to grow within 3 years to 5 years. So, as a sole proprietor or partnership business, you need to draw out your map and access your growth trajectory so that it can be lucrative and profitable.
READ THIS: Complete List Of Ongoing Nigerian Federal Government FGN And CBN Loans And Grants For 2023
Crowd Funding
Crowdfunding is a new way of attracting investors to your site. When it comes to investors you would need as many as possible for you to obtain the capital requirements for your business. Remember, Crowd Funding does not necessarily mean you would give up your business in its entirety. Crowd Funding provides you with the opportunity for investors to buy into your idea
Oftentimes, many crowdfunding platforms do not necessarily need a contractual agreement or obligations. When investors come to your site they require a project or something lucrative that would make them feel obliged to invest.
Factoring/ Invoice Advances
This is a financial agreement where a company sells its invoice or account receivable to a third party at a discounted price. The factor then advances a portion of the invoice value to the business usually around a higher percentage. This process provides a situation where both parties have nothing to lose in the deal. You are expected to pay back the loan when a factor settles the bill.
First Bank SME
First Bank products offer financing to three major categories of business owners: Large and small businesses. The services offered by First Bank provide funds for a large array of owners such as the Small and Medium Scale Enterprise.
First Bank is one of the banks known across the world. This provision made by them allows customers to large loans to finance their business. This business includes people in the following work lines: Manufacturing Process, Energy Sector, Telecommunication, and Infrastructural Sector. As an entrepreneur, one needs to know the difference between getting a loan and the requirements it involves. You must meet First Bank Nigeria requirements before getting a loan or credit facility.
Baobab Group
This platform is one of the best there is. Honestly, for any entrepreneur, it offers large amounts of loans to different classes of people. Also, they offer loans to individuals who are in financial crisis. Their services include microloans, mini-microloan, SME loans, and the like.
Apart from the fact that they give loans to different individuals, it is very easy to obtain the loan. With just four easy steps, Baobab Group would give you a loan in no time. You have to fill out your loan application form for you to apply for a loan. An agent would help you carry out your loan offer if you encounter any problems.
FAQ
How much can I borrow from FairMoney for the first time?
FairMoney offers loans amounting to up to 3 million naira which can be repaid in 2 years. The better your lending history the more loans you get.
How much is the Microfinance bank loan rate?
The microfinance loan rate is typically lower than the traditional bank. These personal loan rates can be used for many packages. The interest rate range from 5% to 15%
Which loan is easier to get?
The type of loan that is easier to get is a credit check loan. Although, it is not the best choice for everyone.
What loan can I get without collateral?
Palmpay, Gtbank, Access Bank, Kudabank, Moniepoint, etc
What is SME?
SME stands for Small and Medium Scale Enterprise. These are businesses where their Capital requirements are little or very low
Conclusion
Many businesses deserve large capital requirements. Especially when it comes to financing a research or technological organization. This article has shown several platforms in which one can obtain a loan of N50000 to N5000000 in Nigeria to finance their business. Regardless of how easy the business is to set up, the business must be able to give out a large chunk of profit so that your loan can be offset soon.
