Agro processing in NIGERIA now so CAPtivating.

Our Cottage Agro processing (CAP) fund provides Agro-processors with access to finance and technology to convert our agricultural products to economic prosperity.

1. Single digit interest rate (9%)
2. 5 year loan tenor
3. 6-month moratorium
4. Guaranteed working capital
5. Speedy processing


To know if the CAP fits kindly visit
www.boinigeria.com/CAPfund


BANK OF INDUSTRY
...transforming Nigeria's industrial sector

Opportunity to add value to your products

@op, thanks for the information.
Please, can you tell us something more you know about the BOI's CAPfund? Because I am interested, but every effort to visit the website so far does not give comprehensive information as required.
Thanks in anticipation.

CyreB:
@op, thanks for the information.
Please, can you tell us something more you know about the BOI's CAPfund? Because I am interested, but every effort to visit the website so far does not give comprehensive information as required.
Thanks in anticipation.

My brother, that is the way it is with bank loans. You will never get the complete information. For instance, for the CAP fund, you will need to get a guarantor who will undertake to pay off your liability if you default. Let us assume you need N5m for a business, who will guarantee to pay back the N5m if something happens to your business?

Let me give you an approach to bank loans. First, use your own money to run a micro-model of the business. Use this opportunity to learn the ins and outs of your business. Commit all the blunders and learn from it. I will advise you read FarmTech's thread on his poultry farm. It is a classical story of how someone started a micro-business model and learnt a lot of stuff he never knew about poultry. All the glamour that has been painted about poultry business was stripped bare and he saw firsthand what is involved.

It is only when you have produced a profitable model which can then be scaled up that you should now endeavour to approach a bank for a loan. So if you are new in the business, I would advise you to forget about any loans. Get a profitable model which can be scaled up. Then you can approach a bank to give you finance.

The CAP fund comes with 9% interest, which means if you borrow N5m, you are going to pay back a total of N5,450,000 in 60 months (not counting admin charges), or about N91,000 every month for 5 years. Does your business have such cash flow? If it does not, will it have it by the time the 6 months of grace is over?

Bros, look well before you leap.

stagger:


My brother, that is the way it is with bank loans. You will never get the complete information. For instance, for the CAP fund, you will need to get a guarantor who will undertake to pay off your liability if you default. Let us assume you need N5m for a business, who will guarantee to pay back the N5m if something happens to your business?

Let me give you an approach to bank loans. First, use your own money to run a micro-model of the business. Use this opportunity to learn the ins and outs of your business. Commit all the blunders and learn from it. I will advise you read FarmTech's thread on his poultry farm. It is a classical story of how someone started a micro-business model and learnt a lot of stuff he never knew about poultry. All the glamour that has been painted about poultry business was stripped bare and he saw firsthand what is involved.

It is only when you have produced a profitable model which can then be scaled up that you should now endeavour to approach a bank for a loan. So if you are new in the business, I would advise you to forget about any loans. Get a profitable model which can be scaled up. Then you can approach a bank to give you finance.

The CAP fund comes with 9% interest, which means if you borrow N5m, you are going to pay back a total of N5,450,000 in 60 months (not counting admin charges), or about N91,000 every month for 5 years. Does your business have such cash flow? If it does not, will it have it by the time the 6 months of grace is over?

Bros, look well before you leap.

Well stated.
Loans basically organised for successful,profitable agribusiness facing cashflow problem or want to expand.
I have said it many times,if you are just starting out or you are yet to know the practical nitty-gritty of the business,it is not advisable seeking for the.loan.,because the bank will investigate your years of experience,the location of your factory etc

Thanks for your responses/advice!

CyreB:
Thanks for your responses/advice!

you are welcome.

ow.ly/dfdhdk

Thanks Guys for this Advise, it is very Educating.

Regards

ahmedng:
Thanks Guys for this Advise, it is very Educating.

Regards

thanks.God bless