So many Nigerians today tend to handle a business but lack good start-up capital. In another case, some have a small growing business but want it to grow to the next level but don’t know how to go about it.
Let me take you through a procedure by which you can obtain loans from banks to grow your small business:
1. Develop a good business proposal
A business proposal is a legal document containing the mission and vision statement of your business. When developing a business plan it must also include the type of product or services you are rendering, the number of staff employed, the lactation where you have your business and to crown it all its financial level.
This means that there must be a total Breakdown of basic information included in your business plan. Any business without a well-written business proposal cannot be legally recognized by any bank and can never gain access to any type of loan. So for your business to be fully recognized by official bodies you must draft out a business proposal.
2. You must possess a good networking system
You must possess a good customer relationship with other people doing the same business as yours in other to have a strong bond. To be successful in any business you need to get familiar with people.
To show that you are indeed an expert in your business you must have some vital information and ideas about your business. When obtaining a loan for your business you will be required if you provide useful information about your business. Questions like, why do you want to obtain a loan for your business? You must be able to defend that question by providing related answers.
Before any bank can grant you a loan, your business must be registered with relevant bodies related to your business. Take, for example, a school that must be registered under Cooperate Affairs Commission ( CAC) before it can be recognized in Nigeria.
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Having your business is a good start and you can easily obtain a loan From the bank because that might serve as part of the collateral that might be required.
When you register your business to appropriate bodies it will be fully recognized as a legal one and granted approval to take the business to any length of your choice. You will have the full right and authority to have your signboard to create public awareness in the crowd.
4. Register with any loan agency
There are thousands of loan agencies in Nigeria, but you can only register with the one related to your business such as a microfinance bank. You cannot just work up to any loan agency and be granted without going through a proper procedure.
So you need to register your business with the appropriate loan agency before you can be granted a loan. Although there are some online loan agencies one can get access to just as K-Cash, OPAY, and many of them. It will require you to link your bank BVN to it before you will be given an online loan. But sincerely this is not always advisable to do because the risk involved might be high and might be given at a higher rate.
5. Ability to convince relevant loan agency
You must possess this characteristic as a business person because you are the one with the vision, and you have the full knowledge of the business idea. So, you must know how to convince this agency about your business idea and bring them into the vision. Make them see the reasons why you must be granted a loan to push your business forward.
Conclusion
Seeking loans for businesses is a very easy step to take but endeavor to stay at a lower interest rate of at least a minimum of 10%. Acquiring a loan at a higher rate might be very risky and might in turn affect your business. So don’t bite more than what you can chew. Always stay at the top of your game and you see yourself on the boat of riding a successful business.
