Hello,

I received a contract from an Indian firm and I was able to handle it independently. The firm pays me on a monthly basis, but I plan to request a loan six months after my income starts flowing into my account. The firm makes payments within the 8th to 10th of each new month.

What are the requirements for me to qualify for a loan based on this information? I would appreciate advice from a Senior Banking Officer. I currently bank with GTbank.

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Olayetan:
Hello,

I received a contract from an Indian firm and I was able to handle it independently. The firm pays me on a monthly basis, but I plan to request a loan six months after my income starts flowing into my account. The firm makes payments within the 8th to 10th of each new month.

What are the requirements for me to qualify for a loan based on this information? I would appreciate advice from a Senior Banking Officer. I currently bank with GTbank.

I doubt if any bank will agree to give you an outright loan even after 6 months except you have a good asset you can pledge as collateral.

The best you will get will be a temporary or revolving overdraft which you can call up anytime the company gives you a purchase order.

Documents you will need tender are as follows

Copies of your certificate of incorporation/business name registration

Certified true copies of the Memart ofbthe comoany, CO7, CO2 etc

Bank statement for the business for a period not less than 6 month

You would also need to present a copy of the service level agreement or the contract you have with the Indian company

Some banks may also ask for an audited financial statement or a certificate of non-indebtedness

The list I have given you is non-exhaustive as the bank may also ask for additional documents where they feel it is necessary.

The bank will also demand exclusive domiciliation of receipts and deposits in your account with them. What this means is that all payments you receive from the Indian company must pass through only your bank account with the bank that gave you the credit facility.

Note that the probability of getting a bank finance after just 6 months of running the business is also dependent on the volume/size of transactions and the frequency with which they occur.

Good luck!