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15 Tips to Gain SBA Loan in Nigeria

Gain SBA Loan: If you are starting your own business.

It is important to know the difference between a small business administration loan.

And a conventional bank loan.

One of the biggest challenges that business owners face.

When they are trying to grow a startup is with funding.

Since money can go fast and one small mistake can cost you your company.

It is important to have options when it comes to getting the funds.

That you need to operate comfortably until you start to profit.

Here is what you need to know about these two loan options:

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Gain SBA Loan

1. WHAT IS A SMALL BUSINESS ASSOCIATION LOAN?

The Small Business Association is a federal agency that provides aide and counsel to small business owners.

The main mission of the SBA is to preserve a competitive marketplace while strengthening the economy.

One way the agency helps business owners start and build businesses is by offering small business loans.

A Small Business Association loan is a loan that the agency offers to entrepreneurs to help them grow their small businesses.

The agency actually has 4 different loan programs that are around for very different purposes.

The programs that you can choose from include:

General Small Business Loans, Microloans, Real Estate & Equipment Loans and Disaster Loans.

Gain SBA Loan

2. WHO IS ELIGIBLE FOR AN SBA LOAN?

Much like students can get federal aid to attend school.

Business owners can get federal aid to start and grow their businesses.

You must meet eligibility requirements before you can qualify for an SBA loan program.

The agency will only offer loans to small businesses that operate for a profit in the Country.

Some other requirements include:

  • Have a reasonable amount of invested equity in the business
  • Use the loan proceeds for business activities
  • Be able to show the financial need for the loan proceeds
  • Be able to show that you have used personal assets before seeking out financing
  • No delinquent debt with any federal agency

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3. WHAT IS A CONVENTIONAL BANK LOAN?

A conventional bank loan is one that is funded by a bank with no government ties.

There are two types of conventional loans that you can apply for.

Which include a secured loan and an unsecured loan.

A secured loan is one that is backed by collateral.

And an unsecured loan is one that is based on your creditworthiness and backed only by your signature.

4. WHAT ARE THE MAJOR DIFFERENCES BETWEEN AN SBA LOAN AND A BANK LOAN?

The primary difference between each type of loan.

Aside from the fact that one is funded by the government, is the type of paperwork that you must submit.

Each loan is underwritten the same way.

But the Small Business Association generally requires a lot more paperwork than a conventional bank.

Pursuing an SBA loan may not be easy, but it is the best choice for businesses that are eligible.

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5. Gain SBA Loan

New startups have accounting ledgers that are low in revenues and high in expenses.

Sometimes, applying for financing is the only way that you can cover the startup costs.

When you are not yet making a profit.

Make sure that you borrow responsibly.

And that you have a detailed plan in order before you start the application process.

Knowing the difference between a small business administration loan.

And a conventional bank loan will help you make an educated final decision.

6. Gain SBA Loan

As your business partner, you can count on us to provide more than just financial resources for your business.

We will support you with advice and help link your business with other successful business clients.

So you can be free to do what you do best – run your business!

All business banks provide a variety of business loans.

What differentiates us is our ability to customize solutions tailored to your unique business opportunities.

A team of well seasoned commercial lenders will design a repayment plan.

And financing structure to suit your business, not to fit some big bank’s policy manual.

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Gain SBA Loan

7. Working Capital and Professional Lines of Credit

It provide flexible financing options to assist in managing accounts receivable.

Inventory and other short term cash flow requirements.

Lines of credit are generally revolving loans with interest only terms.

8. Machinery, Commercial Vehicle and Equipment Financing.

With flexible terms is available for all types of businesses.

9. Commercial Real Estate Financing

This  loans are available for the purchase or refinancing of owner-occupied commercial real estate properties and investment properties.

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10. Construction Financing

Loans to business owners for new plant facilities and the expansion of existing buildings.

Financing is also available to real estate developers for both commercial and residential projects.

11. Business Expansion

loans are available to assist businesses in a growth mode.

Including plant expansion, tenant improvement financing and business acquisitions.

Various terms are available that provide repayment options based on the unique cash flow requirements of each business.

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12. Small Business Administration (SBA) Loans

This can be utilized for working capital, business expansion.

Equipment financing, leasehold improvement, real estate acquisition and other business financing requirements.

SBA loans may offer longer terms and higher advance rates than other conventional loan programs, enabling businesses to better manage cash flow.

13. Letters of Credit

This can help your business guarantee payments for domestic transactions and long-standing vendor relationships while helping you establish credit history.

We can also arrange letters of credit for the import/export activities of your business.

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14. Credit Cards

This simplify the acquisition of small goods and services.

A credit card can provide fast and easy access to funds for business purchases.

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 15. Choose your SBA loan program.

Once you’ve determined that you can meet the general SBA loan requirements, the next step involved in getting an SBA loan is choosing your specific loan program.

The SBA offers a variety of different loan programs and each program will have unique requirements, terms, loan amounts, typical interest rates, purposes, and more.

Therefore, it’s important to consider all of the options and determine which SBA loan program is best for your business.


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