Omoluabi16:
This renMoney won't stop with their unsolicited SMSs. Anyway, is there any loan facility that offer Collateral-free loan for maybe students or Small scale businesses?

And that same Renmoney did not answer my email. They are not serious.

Num07033711115:
Kwickcash.ng can do it

with that their peanut?

i2know2:
Across the country, smart online entrepreneurs with brilliant business models find it hard, and often impossible, to get small business loans. In fact, many do not even know they can get loans. This may be because they are not taking their businesses serious. or the banks are just not lending.

Have the banks run out of money? Of course not! In fact, the volume of bank loans to large companies, multinationals, and big businesses are increasing every year.
So, what are the secrets of getting your small online business loan application approved?


What kind of small business loan should you apply for?
An overdraft is a type of loan that allows you to withdraw money from your bank account even if you have little or no money in it. So, if your bank approves an overdraft of N1,000,000 for your business, it means you will have access to this money even if your account balance is zero.

Unlike overdrafts, a term loan is a sum of money released to you by the bank and starts to accrue interest from the moment you receive it; whether you use it or not (unless the bank agrees to a delay, usually known as a ‘moratarium’).

This type of loan is best for long-term projects and can last from two to ten years, depending on your needs and terms of the loan. Just know that the longer the loan lasts, the more interest you will have to pay over time.


The reason why banks don’t like to give loans to small online businesses…
Why do banks not like to give loans to small businesses and startup entrepreneurs?
They call it ‘high risk.’

This simply means there is a high likelihood that something may go wrong with a small online business and make it unable to pay back the bank loan (plus interest).

If your bank believes that giving you a loan is a ‘high risk,’ your loan application will surely be denied! Unless you can do, show or prove something that reduces the risk to a low level, very few banks will want to give a loan to a high-risk business.
Let’s look at some effective ways to reduce the risk in your loan application and ensure that it gets the approval that you need to secure that small business loan.


Ways to improve the chances of getting your loan application approved…
Fortunately, it’s not an entirely sad situation; risks can be reduced.
Entrepreneurs who can successfully apply any of the ‘open secrets’ I’m about to reveal will significantly increase the chances of getting the loans they want from their banks.


Get a supply contract (or purchase order) from a credit-worthy customer
One of the big risks that worry your bank about your loan application is the ability of your small business to sell enough products or services that will make money to repay a loan.

A supply contract from a creditworthy customer (usually a company or organization with good business performance) proves to the bank that somebody is interested in your products and is willing to pay (and can pay).

With a contract in hand and a credible large company behind you, you would have significantly reduced the high risk that would make your loan application difficult to approve.


Do you have a good credit history?
If you have taken out a loan before and paid it back with all the interest and no delays, it often signals good behaviour and creditworthiness to banks.

Banks and other lending institutions can verify your credit history and gauge the ‘riskiness’ of giving you a loan. If you have been coming up short on a loan you took out previously with another bank, this may show up in your credit history and reduce your chances of getting your loan application approved.

If you have a poor credit history, the banks may insist on collateral or other forms of security for the loan.
This process was not common but now that almost everyone has a BVN, it is easier for them.


A detailed business plan always helps!
To convince the banks that lending you money will not be a gamble, it helps to present a detailed and well thought-out business plan.

What will your business be about?
Is there a market for your products and services?
What is your plan for marketing and selling your products?
What background and experience do you have to make the business work?
What will the loan amount be used for?

The more of these questions you can answer, the more comfortable and convinced the bank becomes.

Your business plan should be a road map that shows the bank that a lot of thinking and planning has gone into your business idea. Most small businesses and startup entrepreneurs do not do a good work of presenting detailed information about their business to the bank.


Writing a business plan can be a simple or complex affair depending on the type of business and who the business plan is meant for (you, banks, investors, business partners etc).


Get a guarantor to cover you
A guarantor is a person who guarantees to pay the bank in the event that you are unable to repay the loan and any interest it accrues. A guarantor is often someone who is wealthy or has valuable assets that can be used as collateral (or security) for the loan.

Having a guarantor to back up your loan application reduces the likelihood that you will not be able to pay back the loan. This usually gives banks the assurance they need to classify your loan application as a ‘low risk’.

And depending on the policies of the bank, your loan application would be approved.
Now you know how to get a small business loan from your bank: have you had any problems?

If you’re like many Nigerian startup entrepreneurs and small businesses, you may have been unlucky with your small business loan application.
What were the problems you faced?
Have you used any of the methods discussed in this article to help you secure a business loan?
We would love to hear from you.


ARTICLE SOURCE

Poster still living in Stone ages....there are financial institutions begging people to loan them funds, this one is old thinking....you don't need guarantors....but it's easier when you 're a salary earner.

helinues:
Who exactly is giving out the loans cos I am more than qualified.

N20m above loan, lets talk biz

PM me.

sucessdriven:
I have got a revolutionary failproof business idea. Just need an investor that will bankroll our way to billions
Trillomaniac@gmail.com is where it begins. No Its not bike related

What's the business about?

Be careful with loans


I saw the loan terms of a loan company with the name that is the name of 1 sheet of a book


It was so horrible. The terms are

1) They can change the interest at will every month so they can increase the Interest rate every month as they choose

2) They will deduct an adminstration fee before giving you the loan. They will not tell you the administration fee either in percentage or amount so you can decide to say no if you feel the administration fee is too much.
Example Mr A borrows 20 naira and maybe 5 naira was deducted as loan administration fees, by the sham loan compay leaving Mr A with 15 naira as the loan amount collected;
Mr A will still pay interest on the 20 naira instead of 15 naira he collected
Mr A would not be told how much exactly would be deducted as admin fees before the loan would be given because if Mr A knew, he might not agree with such terms and might not take the loan

The 15 naira Mr A collects instead of 20 naira might not be enough for what he wants to do and so the loan mightl be insufficient for the purpose he wants to use it

3) The loan repayment date was set at 28th of the Month of which most employers do not pay salaries by the 28th the Month and not repaying the loan installment on that date attracts higher interest rate so the loan company puts a date they know you will not likely get paid so they get higher interest


Please don't make mistake. For exampleYou can request to borrow 10000, receive 7000 after administration fees have ben removed before you see any cash and end up paying 20000

Just be careful.

Loans for ONLINE BUSINESS?......... Capital NO... Please Don't do it especially if its not software as a service.(SAAS) with active subscribers.

yemi15:


And that same Renmoney did not answer my email. They are not serious.

Hehehe..see matter.

pocohantas:


Because your business needs to take her baby steps without undue pressure and expenses. To collect loan sweet o, na to pay back be the wahala.

Loans, like every investment also has an element of risk. IF the idea is there with a high chance of ROI, one should go for it. A shrewd business man can own a virile business bringing returns capable of financincing a 5year loan

Starting a Business with a loan is very Risky and involve too much pressure

pocohantas:
I do not even advise people to take loans from banks. That is if I keep professionalism aside and advise them like a buddy

Don't take a loan for a start-up business. Source for soft loans from family and friends. If you take from banks, the interest payable would eat deep into your income.

To get an OD, your bank statement has to show you have seen that kind of money before. Your statement would determine what you need, not you. ODs are best for working capital. So, if your business doesn't yield daily income, do not attempt OD.

God bless you real good; you were in the spirit while saying all these.

Exactly what I was about saying before scrolling down abit only to see yours.

Brother, leave Nigerian banks. These people will give you an umbrella when there is no Rain. Immediately, the weather changes, you are on your own. Your point 2 cannot be for Nigerian banks.

For Example, I have a contract letter from a Federal Government Organization. One of the pre-conditions for starting is that I have at least $1M in my account or get my bank to guarantee that they can fund the project. Payment to made within 180 days.

There is just no bank in this country I have not been to. They keep telling me to bring collateral. I ask them Collateral for what na? These people are not serious in supporting businesses. Just forget Nigerian banks. They are worthless, I swear.

specter:


I understand your point. But I depends on the kinda business and if you have a solid plan.

If you plan to take a loan for business as a graduate, my advise is first sell yourself by getting a job in another man's company.

Work at least 3-6months, then get a loan. Put the loan pressure on your salary while the business takes some pressure off your daily expenses. Do this for another six months before asking your side biz/coy to give you a full time job as CEO.

If you can't sell and keep selling your self in the employ of another, chances are high that you can't sell yourself in your own employ.

Which inversely means that the chances of you selling your business to the public is slim

Hmmm, we both know it isn't this easy. Nigeria isn't a very mice country for new businesses. Let alone the one standing on a loan.

We are talking of more than N350 million! Which Bank for this Buhari era go loan you that kind of money?? When you no be Dangote

pocohantas:


Which banks have you been going to?
So many banks will happily give you an APG all things being equal. After all, revenue from the project would be domiciled in the bank.

And what project are you funding with such amount? You be Julius Berger? That amount can lead to another Diamond and Polaris o. I no blame the banks.

Ijeleigbo:
We are talking of more than N350 million! Which Bank for this Buhari era go loan you that kind of money?? When you no be Dangote

Lol, true talk. What he needs is an APG, not just a "loan", he seems to be one of these engineering contractors. Some banks would naturally shy away from it, it is a contingent liability that can quickly turn into a direct one if the contractor fails to meet his obligation.

If he were Dangote, he will get it

Dhenz:


What's the business about?

How do you expect him to spill it in a public forum?

Delivar:

How do you expect him to spill it in a public forum?

The idea is for him to make effort to get through n let me know the medium with which one can contact him?

..

Dhenz:


The idea is for him to make effort to get through n let me know the medium with which one can contact him?

check your email Sir

Dhenz:


Poster still living in Stone ages....there are financial institutions begging people to loan them funds, this one is old thinking....you don't need guarantors....but it's easier when you 're a salary earner.

Please Bros can you help put me through

When the interest the bank will charge kill the small business? Abegi.

By the way, who knows how to access the CBN SME facility?

Not everyone is a salary earner sir. What of those into small businesses?

Dhenz:


Poster still living in Stone ages....there are financial institutions begging people to loan them funds, this one is old thinking....you don't need guarantors....but it's easier when you 're a salary earner.

MrBONE2:


Please Bros can you help put me through

PM

luluosas:
Not everyone is a salary earner sir. What of those into small businesses?

You can still get with some terms n conditions

Alright. Please link me up. Thanks

Dhenz:


You can still get with some terms n conditions

rfbvcsa

Olawalesmarter:
Starting a Business with a loan is very Risky and involve too much pressure

In my opinion it's depend on how successful your idea is . Yes of course it could be risky but if you choose a correct loan company you will escape some lose of debit in your bank account or additional fees . I borrowed 20K from this company
PaydayLoanAmerica. This loan company has a great service. Not everyone has an emergency cash fund that can be called upon when it is necessary. They have small monthly fee and simplified steps for approving your loan.

Are you in damn in need of cash to attend to your personal needs ?

Or you are looking forward to cash to expand that your business or to start up your business idea ?

Here is the good news, do you know you can have an access to funds worth up to # 5,000,000 without an hassle irrespective of your location in Nigeria .

All what you need are few documents without any collateral to secure this funds.

If you are interested, kindly comment below with your full name and phone number and you will be called right away.

Delay may be dangerous…

Cheers