When you are planning to start a business, among the million things you have to plan for, the first one is the capital needed. The capital you have to invest for your business would depend on a lot of factors including the size and type of your business. If you have a reliable source of finance for your business, half the pressure on you would be relieved.
When it comes to financing any of our needs – business or personal – banks are the first place one goes to. But most banks in Nigeria come with stringent policies especially with regards to start-ups. This might make the loan process long tedious and difficult. In terms to increase your personal wealth you might consider using Die Swiss Methode trading software.
Sources of finance for your business:
In Nigeria, there are several loan and lending options for budding entrepreneurs. The key is to analyze and weigh your options to find the right one that best suits your business needs. Here are some ways to obtain funds for your business in Nigeria:
Savings and investments:
The first option is like in any other place where you start your business, make a cumulative record of the amount of savings you hold. This would help you figure out how much you are running short and how much funds you would require. Keep a safe reserve and plan accordingly. Remember that any loan and lending option comes with interest. So the lower the loan amount, the easier would the financial burden be.
Commercial banks in Nigeria:
If you have the right collaterals to back up your loan application, there are several commercial banks in Nigeria that would be able to lend you loans. Like conventional bank loans, these loans would bear interests. There are long term, short term and mid-term loans for businesses based on the tenure. Also in most banks, you would first be asked to open an account with them and then you would be able to proceed with the loan application process.
YouWin- Youth Enterprise with Innovation in Nigeria:
The Ministry of Finance, Ministry of Youth Development and Ministry of Communication Technology in Nigeria, together have established a program called YouWin. This is an initiative to help aspiring young entrepreneurs.The loan application process is pretty simple. To avail the YouWin funds, you would have to register your profile on the YouWin website.
The small and medium enterprises development agency of Nigeria is a government body that helps youth entrepreneurs in Nigeria. Besides associating with banks and aiding in the funding for businesses, this agency also helps with entrepreneurship training, counseling and more.
Bank of Industry (BOI) in Nigeria is another source of loan for entrepreneurs. Even for smaller cottage industries, one can fill out the application for loans from BOI Nigeria website. This is one of the most flexible loan options available conveniently for businesses big and small.
Besides the above-mentionedoptions, there is an ample number of other lenders and lending organizations to encourage the young entrepreneurs. This is to also help improve the job market in Nigeria. So it makes it a win-win situation for the Government and the individual. Make sure that you do enough research to find the easiest loan option for your business.