Best banks for small business loan
August 16, 2018
Best banks for small business loan. There is a great financial need to support an existing business with funds, better still fund a startup.
How and where to get these funds oftentimes become a herculean task, frustrating and difficult, with all variables in good shape it then becomes pertinent to source loans aimed at accomplishing this task.
While small business loan can be difficult to obtain, there are options not farfetched, in this article you will get to understand how small business loan works and how you can source the best loan for either a startup or to expand your existing small business.
Categorically as it concerns Nigeria, reading this guide will serve as an eye opener to your breakthrough towards accessing small business loan, to further assist advance your course into big time entrepreneur.
WHERE CAN I GET SMALL BUSINESS LOAN TO SUPPORT MY BUSINESS?
The answer to your question is tied down around few commercial banks in Nigeria who have in their own creativity, commitment and quest to assist dedicated entrepreneurs achieve their set down goals and objectives, made provision for seamless facilities that encourage small businesses.
Read also: See how you can get loan without collateral
First on this list is Diamond Bank: Diamond bank has a loan package termed PERSONAL LOAN, this loan actually came in existence for the purpose of assisting you overcome your financial challenges, you can actually access and convert this to small business loan.
Feature and Benefits of Diamond Personal Loan
1) It has a repayment period of up to 12 months, you can as well pay in installment.
2) The pricing is competitive, you can negotiate down the interest rate to your advantage, there’s no hidden charges.
3) You can access a minimum amount of N500,000 and a maximum amount of N5,000,000. Corporate Guarantee can access N10, 000,000.
There are however requirements to certify before you can access this facility
1 You must have a functional savings account with the bank, why not open one today and start funding your account gradually and build it up ahead of the business plan.
2 You will complete a retail lending application form provided by the bank.
3 You have to present your employment letter to the bank.
4 You confirmation letter is required or your last promotion letter
5 Staff ID
6 Valid ID card ( International Passport, driver’s license or national ID card).
7 Your proof of address. With all these details you are good to go sourcing your small business loan. Diamond bank is one of the easiest bank in history to get small business loan.
First bank: First Bank believe that Small and Medium Scale Enterprises are key drivers of the economy, this is why they have designed products and services that create solutions for your business growth and sustainability. That being said, they have arrays of loan plans you can benefit from. https://www.firstbank.com/
Oil and Gas Contract Finance: This facility is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of First Bank.
1 The loan is self liquidating: Upon receipt of contract proceeds, you are required to be kneeling off.
2 The facility is usually short term tenured: This is mostly between 90 to 360 days.
3 The bank provides up to 70 percent of cost of contract execution and not that of contract value.
4 The product is essentially domiciliation of contract proceeds as the sole comfort except where the facility is in excess of N50 million naira for project finance which must be secured with tangible collateral.
1 There is an increased profitability
2 Contract Documents
3 Financial statement (Audited)
4 Evidence of past jobs executed, copies of payment advice.
5 Your application letter.
Import Finance: This is a First Bank loan scheme targeted at its’ customers who import raw materials or finished goods and services into the country.
Features of Import Finance:
1 Credit facilities are made available through (LC) Letter of Credit, (BC) Bills for Collections etc. I will write exclusively about these two terms as it concerns importation in my next article on this blog for you to learn more.
2 It’s a short tenure facility with the lien on shipping documents serving as collateral.
3 Equity contribution is required
1 There is an ease of access to credit facilities for importation.
2 The customer can take advantage of volume discount and enlarge sales.
1 (KYC) Know Your Customer documentation has be in place.
2 Form M.
3 Proforma Invoice
4 Risk Assessment Report (RAR). If your business is solemnly on importation of raw materials and finished goods, then back up yourself with this opportunity and make exploits, no doubt an effective small business loan.
Skye Bank: “Personal Term Loan,” This plan has been provided by Skye Bank to enable you meet your small business loan challenges, hence one of the easiest banks to get your small business loan. https://www.skyebankng.com
1 Access up to N5 million
2 Flexible and convenient monthly repayment plan over a period of 36 months.
3 You will pay back from your salary domiciled with the bank.
4 There’s a competitive interest rate.
5 You are not required to provide collateral.
1 Applicant must be in employment of reputable organization in private or public sector.
2 Applicant’s salary account must be domiciled with the Bank.
3 This facility is available to only confirmed staff.
How to apply:
1 Visit any Skye Bank branch closest to you to complete a loan application form
2 submit duly completed loan application form with all relevant loan documents.
3 Your loan is processed and disbursed within 48 hrs. Skye bank could be categorized as one of the top small business lenders, you can easily source your small business loan without much stress.
The aforementioned banks have been up and doing in providing what could be referred to as best small business loan for startups, they remain the industry good players with a track record over time.
Do you have a contrary idea, this list may not really appeal to everyone but do well to leave your contribution using the comment box below. Point out other banks you think are better in providing small business loan.
Raphael Orji is a freelance writer, professional blogger and a content marketing consultant. I work with small businesses, startups and entrepreneurs in building their brand image with high quality blogging and content marketing strategy.
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