I'm in a business partnership with a friend, we have a registered company that's in form of a conglomerate , so we can basically do a lot of different ventures, recently he brought a business proposal and we are to invest 5m each.

I can raise 3.5 on my own , he on the other hand can raise 2.5m but the problem is that he suggests we bring 2.5 m each since thats what he can afford, that we can finance the rest. Even though the bank has already offered us 5m at 8%, I have insisted that the bank attach a 6 months moratorium since its agro business, but they refused. I'm very skeptical I dont want to finance any business in Nigeria with loans as I think they are all predatory lenders


This partner of mine is older than I am but I happen to have a loan I'm also servicing abroad so I know what loans , if not properly handled can do to a business or even personal finance, but he on the other hand have no such expedience, hence he does not really understand the loan situation the way I do.

My suggestion to (him/us )is that we can start small with 5 million that we both can raise at ease and grow from there, in fact the cash flow would determine if we can even take a 20 million loan or just 5million that was in our original business plan.

Dear businesslanders, I need your opinion on this

I would advice you better if you could let me know;
1 . if the 8% is monthly or total interest .
2. The type of ago business (rearing , crop or processing )
3 . Who will manage the business .

1. Monthly

2. Fish farming ( we been doing it for 3 years just looking to expand)

3. Both of us.

Mogambo123:
1. Monthly

2. Fish farming ( we been doing it for 3 years just looking to expand)

3. Both of us.

8% is too high in this economy . I guess u approached a micro finance bank .
2. Bro, I won't advice u to take a loan to finance an agricultural project in Nigeria. Am advicing u as a money lender .
3. Thought u said u r abroad

concho:

8% is too high in this economy . I guess u approached a micro finance bank .
2. Bro, I won't advice u to take a loan to finance an agricultural project in Nigeria. Am advicing u as a money lender .
3. Thought u said u r abroad

1. You are right on this one.

2.Well it all depends though, we have done it before and it worked, just that I have reservations about this one.

3.Used to, now I only visit.

I appreciate your contribution brother.

[quote author=Mogambo123 post=83559810]

1. You are right on this one.

2.Well it all depends though, we have done it before and it worked, just that I have reservations about this one.

3.Used to, now I only visit.

I appreciate your contribution brother. [/quote I ]I wish you luck then