Are you a business owner looking to fund your business? Or are you an entrepreneur with a brilliant idea waiting to happen? One of the major challenges you may face as an entrepreneur or business owner is a way to access finances for the actualization and operation of your business.
Finances are the lifeblood of any business and as a business owner, finances are essential for things like the acquisition of inventory, daily operation, and maintenance of your business or the physical expansion of your business.
Perhaps you own a Bakery and you are looking to expand your office space, get fresh equipment that will give you an edge over your competitors, or perhaps open bakeries in other locations, you would need finances to make this a reality.
According to the Longman Business Dictionary, a Credit Company is simply a company that lends money to people or businesses. In Nigeria, accessing funds has become much easier especially with the rise and evolution of the FINTECH industry through the use of technology like mobile applications. Companies can now leverage technology to reach a wider customer base. Nigerians can now access loans right from their mobile phones. This is a very good opportunity for start-up businesses.
As a business owner, the structure of your business is something you must consider closely. The reason some businesses in Nigeria are unable to access funding is that they are limited by their structure. Your business structure must be in such a way that it doesn’t limit your access to getting funding.
You must have proper financial records of your business, a comprehensive but flexible business model, a clear cut, accurate and structured financial model and records of societal contributions. You must also make sure you are working with the right team, have the right business plan and can give a compelling pitch. If your business is positive in these criteria mentioned, getting access to finances becomes very seamless.
Now you know what you need to look out for to get access to funding for your business. Let’s look at some companies in Nigeria that can give you access to credit loans to help you start, sustain, and scale your business!
GroFin is a financial institution that provides small and medium scale enterprises across Africa and the Middle East access to loans. GroFin offers loans that range from $100,000 to $1.5 million with interest rates as high as 15%. If you are a business owner looking to expand your business on a very large scale, this will be the best option for you.
SMEDAN is a government-backed enterprise that offers easy and quick loans to Nigerian Small and medium scale enterprises who require funding to start up their business. The interest rate on loans is about 13%. This government based project aims at targeting entrepreneurs and small business owners who need financial help. Their mission is to help promote entrepreneurship in Nigeria and also provide capital for their business. SMEDAN also offers unique hands-on training opportunities to help run their business.
RenMoney is an online lending platform that offers loans as low as 40,000 Naira and could go as high as 6,000,000 Naira with a tenure of 12 months. The interest on loans is dependent on several factors like the company you work with as well as your credit score. Some other requirements include a fixed source of income, an active bank account, and a valid ID. There are no collaterals required but the applicants are usually to provide some documents like proof of monthly income and credit report.
Zedvance is a finance company that provides a platform for finance and business loans. This platform is majorly for salary earners. It offers loans for as much as N3, 000, 000. Its interest rate is between 4% – 4.5% based on the amount of the loan received, with a loan tenure of 3-12 months.
Lidya is a fintech company and makes use of technology to evaluate the possible risks involved in giving out loans. It is an online platform that provides funds for business owners. This platform offers SMEs unsecured loans between $500-$1500 at an interest rate of 3.5%.
Kwik Cash is an online lending platform that works with commercial banks, tech companies, and mobile network operators to provide quick and easy financial services to Nigerians. Kwik cash provides loans between N15,000 and N500,000 at an interest rate of 5% to 15% with loan tenure between 14 to 30 days of payment. With its unique USSD loan option, you can request a loan right from your phone.
7. C24 limited
C24 is a microfinance institution that helps consumers provide retail loans quickly and easily, with an interest rate as low as 4%. Their online loan process has been optimized to help their applicants avoid the stress associated with other loan companies. This platform is best for people looking for personal unsecured loans.
Credit Direct Limited, a member of FCMB Group Plc provides unsecured consumer loans to individuals in Nigeria. They offer loans as high as 5 million naira within just a few hours with low-interest rates.
PayLater is an online lending platform that provides easy access to short-term loans for individuals and small businesses in Nigeria. They help cover unexpected expenses or an urgent need for cash.
.Paylater offers its users up to N500,000 loans without collateral. Once the loan is approved a direct deposit will be paid directly into the borrower’s account within 3 business days, maximum. Making on-time repayments can grant you access to higher credit limits for your next loan.
OneFi is a credit facility company that offers short-term consumer loans to credit-worthy individuals with limited access to finance. One-Fi loan repayment cycle is between 3 – 6 months, with loans that amount up to N200,000 or more.
So there you have it! You can choose any of these credit companies above to help start, grow, and expand your business based on the size of your company amongst other factors!