Being an entrepreneur can be challenging at times when there is no adequate funding for your business. Sometimes, this may result in the closure of the business, and at other times, the business may be crippled. In this article, we would be reviewing the top reliable business loan providers in Nigeria. As you read this article, take note of how the banks mentioned, the type of loans they give out and other details.
1. First Bank
Over the years, First Bank has been at the forefront of helping small and medium-scale enterprises. They have released packages that work well to meet the need of startups in Nigeria. For instance, they have funding packages such as personal, business, and private packages. Regardless of your choice, you would get offers that would suit you.
Depending on the sector of your business, First Bank is your go-to business loan provider. To stand a chance to get the First Bank loan for small and medium-scale enterprises, you would need to be in one of these sectors:
Oil and Gas, Manufacturing, Telecommunication, and Power, to mention just a few.
The size of your business is sacrosanct to the kind of loan you would receive from First Bank. So, if you are a small business owner, expect to receive a loan that is proportional to the kind of output or service you offer.
2. Union Bank
Through their SME Loan platform, Union Bank offers one of the best packages for business owners. With the Union Bank loan packages for SMEs, you get working capital to help you meet your short-term needs. That’s not all, if you need asset financing, Union Bank would make provision for that. This would entail bringing in assets such as operational vehicles, generators, and other pieces of equipment that would help in the running of your business.
Banks are often skeptical when it comes to offering loan opportunities to sole proprietors. However, with the Union Bank loan packages, as a sole owner, you could get a loan as high as 5 million naira to finance and help you expand your business. No matter how you look at it, Union Bank loan packages are tailored to meet your needs regardless of the type of entrepreneur you are.
This loan also is not dependent on the type of industry your business falls under. Union Bank financing cuts across almost all sectors you can think about. So, if you want to finance your business without any hiccups, then Union Bank is one of the best places to think of.
3. Baobab Group Loans
Unlike the First Bank and Union Bank financing packages, Baobab Group Loan is dependent on your location. So, it is not nationwide and as such only open to people at specific locations in Nigeria. These locations are Oyo, Ogun, Lagos, Abuja, and Kaduna. In these locations, the loan package is open to small, medium, and large-scale enterprises.
One of the factors that make a Baobab loan suitable for your business is that the interest rate reduces depending on the quickness of how you pay it back. That means, for instance, if you take a loan with a 5% interest rate, when you are taking another loan, the interest rate would be lesser.
Another great benefit of the loan is that you do not need to have an account with Baobab Bank to access this loan. Having an account or not is not a major eligibility criterion in requesting a loan. This is the primary reason why it is one of the most sort-after loans.
4. Access Bank Loan
Access Bank loans for businesses are meant for businesses that are seeking to upgrade to a large scale in a short time. This does not change the fact that they have loan packages for individuals but loan emphasis is primarily based on corporate bodies seeking to upgrade their pieces of machinery or business as a whole.
One of the factors that make Access Bank loans sort after is that they have all kinds of loan packages that a business would need. This would mean that everything that an entrepreneur needs in the form of loans is well offered by Access Bank.
Which bank is best for startup business loans?
To get business loans, the banks that are commonly used to obtain capital funding are First Bank, Union Bank, and Access Bank.
How can I get funding for my startup in Nigeria?
You can get funding for startups in Nigeria by requesting loans. Loans can help you with the adequate funding you would need to grow and expand your small-scale business.
How to get a business loan for starters?
You can get business loans by requesting them. Walk into any bank of your choice and ask for the requirements needed to obtain a business loan.
Is it wise to get a loan for my business?
To obtain capital, it is wise that you obtain a loan. A loan would help you grow your business to the stage where you attract visitors.
What is a business loan?
A business loan is an amount of money specifically meant for the building and growth of a business.
As a small or medium business owner, getting financing for your business can be tasking. This is because finding the right one that would be tailored for you may seem impossible. Thanks to this article, you’ve got the right information on banks that offers loan packages that are tailored to your needs.