Are you ready to start your own business? If so, now’s the time to work out how to raise money to start your business. According to the National Bureau of Statistics of Nigeria, the economy grew 0.55% in 2017, signaling the first sign of recovery since the major recession. When considering coming up with a business investment, start by looking at your own savings. You must also build supportive investors for your team. But a key way to build up funds for a business is to opt for a loan.
Keep in mind, getting loans for small business ideas is not easy. Banks will not lend money to a business without favorable conditions. This is because they do not want to risk debt in the current economy. Take time to consider the variable loan options that will benefit you in the long term. Your credit check will determine the interest rate, which this example from Norway demonstrates. Proper planning and management will help you deal with collateral and credit issues.
Here are the top 3 lending platforms for business loans in Nigeria.
Smedan is a government-supported initiative that offers easy loans to small businesses. Their mission is to promote successful entrepreneurship in Nigeria. The main goal is to provide the capital needed for their business ventures. Owners may also receive hands-on training to increase the chances of running a successful business.
As a consumer finance company, Zedvance commits to providing consumer credit to employees. Entrepreneurs can receive up to 3 million Naira, depending on their credit. The company provides specific loans to employees. This option is ideal for those on a regular salary with plans to invest in a side business.
This building platform provides an easy opportunity for individuals to receive financing. It is focused on lending and entrepreneurship. The company is known for its affiliations with three credit bureau agencies located in Nigeria. This will help provide fast and affordable loans without hassle.
Aella Credit follows a credit-scoring program to determine if the applicant is suitable. The algorithm software determines their eligibility by considering the demographic and social factors as well as their income to debt ratio.
Furthermore, most of these lending platforms offer quick loans, yet many don’t need collateral. Keep in mind, it is advisable to study their terms and conditions. This will help you understand their process before you apply. One last factor to consider is the payback period and interest rate. As a business, you will want to prepare for the pay period and earn back profit.