Running a business in this country is hard and its even a lot harder to get a bank or financial institution to loan you money needed to grow your business. Today we will be showing you how to get a quick loan in Nigeria.<\/p>\n

Raising startup capital to finance a business idea is not easy and that is why the question \u201cHow do I get loan to finance my idea?\u201d is mostly asked by people from all walks of life.<\/p>\n

There is no doubt to the fact that it is sometime hard to come by money to launch a new businesses. In fact, one great hurdle you will have to cross if you are to be in business is raising start- up capital.<\/p>\n

There are many problems confronting entrepreneurs, but the major one is how to raise capital.If you have a good and and tested idea, the only thing that can stop you is how to finance such idea and kick it it off ground.<\/p>\n

If you\u2019re a small business and are thinking of how to get a credit facility from a financial institution, here are 8 effective ways to get bank loans in Nigeria:<\/p>\n

Steps To Get A Quick Loan In Nigeria:<\/strong><\/p>\n

1). Salary Advance:<\/strong>
\nMany micro finance banks give loans to individuals against the value of their salaries. If you run a small side business but still work for an organisation, you could approach micro finance banks like RenMoney and co. to get a loan, which you could then use to finance your short-term operations, pending when you repay it at the end of the month.<\/p>\n

Every micro finance bank has their own terms. Visiting each to understand what they will or will not allow will determine whether you get the loan or not.<\/p>\n

2). Invoice Discounting:<\/strong>
\nIf you\u2019re a contractor, this is a great bet for you. Several banks like Access Bank issue loans to businesses who have outstanding invoices for payments owed.<\/p>\n

For instance, if you run a supply chain business and are expecting an outstanding payment of 1 million Naira from an organisation, you could borrow up to 75% of the value of the invoice from a bank to finance your next supply, pending when the debtor pays up.<\/p>\n

This way, if you lose the amount borrowed, the bank is still sure of recouping their money from the outstanding invoice you\u2019ve lodged with them.<\/p>\n

3). Collateral:<\/strong>
\nThis is the most common way of getting bank loans in Nigeria. If you want to get money for most business activities, you\u2019re usually required to have a collateral that is about 50% more valuable than the loan you want to get a quick loan in Nigeria.<\/p>\n

The collateral could be a house or any other valuable asset the bank is confident they\u2019d be able to monetize in the event that you do not pay up.<\/p>\n

4). Asset Finance:<\/strong>
\nIf you run a business like a transport company, equipment leasing company, or the likes, and have a good cash flow, you could approach your bank for an asset finance.<\/p>\n

In this instance, the bank would finance the acquisition of the assets because they\u2019re certain you already use these type of assets to run your business.<\/p>\n

In some other cases, a bank may finance the building of an even larger project like a shopping mall as part of their asset finance scheme, without collecting collateral from you.<\/p>\n

Whenever banks finance the acquisition of assets, they\u2019ll literally own the asset and its revenues till it is fully paid for. This saves you the trouble of having to put up a collateral before you can fund some of your projects.<\/p>\n

5). Advanced Payment Guarantee:<\/strong>
\nAdvanced Payment Guarantees are usually sought when a company demands that a contractor they just awarded a contract provides them a form of Bank Buarantee (BG), before they can disburse the first batch of payments to them.<\/p>\n

Companies demand a BG to ensure they can still recoup their losses in the event that the contractor disappoints.<\/p>\n

When contractors find themselves in a position where an organisation is demanding a guarantee from their banks, they take a copy of their award letter and important information about the client to seek an advanced payment guarantee from the bank.<\/p>\n

This guarantee could usually be issued without a collateral required, depending on who the client is.<\/p>\n

If You are an individual looking to access quick loans for personal use.<\/p>\n

You Can Try:<\/p>\n