One of the best ways to boost business sales is to obtain a loan. Unfortunately for many, they find it difficult. Despite these difficulties, they still see others obtaining loans. Could it be there is something they aren’t doing right? probably, there is. So, what if I show you some practical ways to obtain business loans in Nigeria?
Is there anything you can do to guarantee that your next loan application isn’t thrown away? There is. And that is what we are going to show you here to ensure you are properly guided. As you already know, obtaining business loans are guaranteed ways of ensuring your business expands.
4 Practical Ways To Obtain Business Loans In Nigeria
So, what are the things to do to obtain business loans in Nigeria? let’s show you, in no particular order.
1. Arrange Your Business Documents
You already know that you will not be able to access any loan if your business is not registered. However, many people do not know the importance of these business documents in obtaining loans. Any loan company you approach would love to be sure you a credible business to deal with. So, to stand a better chance of obtaining loans, ensure your relevant business documents are kept updated and intact. Some of the needed documents include:
- Personal and business tax statement for 1 – 2 years.
- Bank account statement for the past year
- Business plan (especially if you are looking for funding for your business idea)
- Document showing income statement in the last 2 years
- CAC business registration documents, shareholders agreement document
- List of staff members on the payroll in the last year
- Proof of ownership or title documents for any asset owned. Most financial institutions and lending companies will require a collateral.
2. Evaluate Your Loan Credibility
Before you approach anyone for business loan, ensure you are credible for loans. Must businesses overlook this. Let’s bring it home. Would you give loans to just anybody that approaches you for loan? Of course you won’t/ You have to ensure the person/business has the character and capacity to pay back.
So, what is your credit transaction history? Do you have a poor record of repaying loans you borrowed? Can your business meet up with the loan demands? Do you have an up to date financial recording to back up your chances of getting the loans? Evaluate these to ensure you are in the right place before applying for loan.
3. Launch Out
Loans won’t come to you when you sit down and fold your hands. You have to get up and approach the companies or firms that would be able to give you loans. You may not be able to know all you need to know unless you step out. So, get up and meet with prospective lenders to know if you can obtain loans from them.
4. Fill The Loan Form
Get the loan application form and fill it. Also, take a look at the loan agreement before signing it. Be careful not to get roped into what you’re not ready for. Ask your loan officer about late payment penalties, hidden charges and for the breakdown of the monthly repayment of the loan. If you are not comfortable with certain parts of the agreement form, it is advisable that you seek legal counsel. The loan application form would often require information such as name, home and business address, previously owned businesses, phone number, email address, business history etc. After submitting the form, the lender will then conduct a credit check with the credit bureau.
Trust me. If you put these measures in place, your chances of obtaining business loans will increase by the day. So, get going. All the best.