Business Loan Without Collateral: Let us now discuss How to Get a Business Loan without Collateral in Nigeria.
In the event that you are a small or medium scale entrepreneur, opening an account with a bank can be advantageous to your private venture.
Banks are the real money lenders to individuals and organizations.
Nonetheless, to get to loans from banks, the borrower needs to understand that some criterion has to be satisfied.
This would aid eligibility for a loan from the bank.
Read on: Top 15 Social Media Marketing Business Tips in Nigeria
It is important to realize that banks don’t simply give out loans to anyone that wants them.
They have to be convinced of your ability to pay back, we know the bank is not a charity.
Banks for the most part tie their endorsement of loans to particular ventures or purposes.
For example, supporting business plans or carrying out other projects.
source: https://financengr.com how-you-can-get-pay later-loan
Business Loan Without Collateral
Usually, salary earners in reputable organisations find it easier to get loans from banks with which they have salary accounts.
This is because the bank having access to their salaries can always withdraw a percentage until the loan is fully settled.
At the point when the borrower does not have a salary account with the bank.
The moneylender usually requests collateral before giving out loans.
In any case, without collateral, a few banks can give you loans as long as you meet the accompanying conditions.
Related: Top 20 Business Loan Givers in Nigeria
Business Loan Without Collateral
See Steps to Get Business Loan without Collateral in Nigeria
- Register your business: Do not hold up until you require a loan before you begin your business. Open a business account with your bank. When you have a working relationship with your bank, it will be anything but difficult to get a loan. This is because banks will just relate with their customers and not outsiders.
- Be particular on why you require the cash: You must have the capacity to persuade the bank that you will utilize the cash for your business and not other things. The cash might be expected to obtain new machines or pay for merchandise in addition to other things. The bank needs to be persuaded that you will have the capacity to pay back.
- What amount do you need: Be particular on the amount you need to obtain from your bank and when you intend to pay back. Loans for small and medium businesses don’t as a rule surpass N1m.
Read also: Current Start-ups Grants in Nigeria
You may likewise attempt to acquire some cash from relatives and companions who won’t request interest. This will decrease the loan you need to take from the bank. Bearing in mind the fact that the bank will decide the interest rate you need to pay back on the cash.
Likewise, keep legitimate records of your finances, both incoming and outgoing. Have a cash flow analysis. This you will present to the bank to demonstrate your current money related stream and capacity to reimburse the loan.
- Guarantor: Because the bank is not asking for you for collateral, as a rule, it will demand for an underwriter in the event that your business plan comes up short and you can’t reimburse the loan. Your guarantor is generally required to work in a corporate organisation. He is expected to demonstrate proof of his money related worth in the form he will fill for you.
- Bank statement: You might be required to present financial accounts to demonstrate your business is still in operation.
Read also: Top 10 Grant Providers for Businesses In Nigeria
Business Loan Without Collateral
A CASE STUDY
AB Micro Finance
To a great many people they think, getting a loan in Nigeria without providing collateral or a guarantor is unrealistic.
In any case, you are in luck if you are reading this article.
Especially those yet to start their business due to absence of funds.
Related: How to Get Federal Government Loans for Small Business in Nigeria
Business Loan Without Collateral
The Process of Application for Loan
Getting a loan in AB Micro fund is so easy.
In light of the fact that the bank is owned by German nationals.
And they are very unconventional people.
All that you need is to stroll into their office at 9, Oba Akran Avenue, Ikeja, Lagos.
Ask for explanations on how you can get a loan for your business.
The officials will give you a form for the securing of the loan.
Which you will fill with the help of any available officer.
In the next 24 hours, a loan officer will be allotted to you who will go to your shop or office.
He or she will ask some questions as to the kind of business you do.
He will also like to know your income and how regularly it comes, e.t.c.
Basically this bank services the mainland part of Lagos.
So it will be in your wisdom to get a mainland address.
As this will enable the bank service your business.
If everything goes on well, in one week, give or take, your loan should be approved.
Read also: Top 21 Basic Loan Acquisition Tips in Nigeria
Business Loan Without Collateral
Characteristics of the Bank
- Quick and straightforward
- No concealed expenses
- No past investment funds required
- All you need is a running business
Types of Loan
- AB Business Flexi
- AB Business Plus
- AB Business Max
AB micro finance is a vital part of global micro finance fund network with different shareholders viz;
(1) Access holding (Germany)
(2) African Development Bank
(3) KFW (Germany)
(4) IFC (World Bank)
(5) Impulse (Belgium)
See also: 16 Ways To Fund Your Business In Nigeria
A CASE STUDY: PAYLATER and AELLA CREDIT
Step by Step Instructions To Get A Soft Business Loan Without Collateral In Nigeria
The procedure required in getting a loan from banks in Nigeria is a long and tedious one.
For those that have set out to get loans from Nigerian banks.
They know the apparently outlandish terms that are constantly set.
These terms can hamper entrepreneurs, the common man.
And anyone that requirements to get a soft loan in Nigeria without the bothers of collateral and huge interests charged on ordinary bank loans.
Holding up till the end of the month for compensation can likewise be an extremely tiresome affair.
Especially when there is crisis requiring immediate money
Paylater and Aella Credit are two tech start-ups that offer loans to clients with no collateral.
And they additionally charge as low as 7% interest or less on the loans.
They particularly have an inclination for individuals who have job security, that is, a month to month salary.
Read also: 9 Loans Problems & Solutions in Nigeria
Business Loan Without Collateral
These are the straightforward steps to get a loan in 24 hours or less:
Step 1
Download the Paylater or Aella Credit applications from the Google Playstore or iTunes, they are both not more than 35MB each.
Step 2
Input money related information of interest including your ATM card and Bank Verification Number (BVN).
This would be utilized to charge your record when the agreed reimbursement time comes.
See also: Top 19 Financial Business Potential in Nigeria
Step 3
After filling the form, fill the application for from inside the app and if your application is acknowledged, your account will be credited within 72 hours.
The loans for the most part begin from around ₦10,000 and increase with every reimbursement that is being made.
If it’s not too much trouble, please take note of there are a variety of reasons loans are rejected.
The reasons go from an inadequate filling of the form, to giving wrong information.
If you need a complete business plan, please let us know.
Or, you want us to help you set up this business, kindly contact us.
Otherwise, Please check out these other business ideas you can do.