The word loan in Nigeria is sometimes seen as taboo, however it is a word that should be synonymous with business. Nobody likes the idea of having to pay money back, but when it comes to business, sometimes the upright capital you need is just not something you will find lying around in your savings account. Borrowing money isn’t always such a bad thing if you have a solid repayment plan and you ensure your returns will supersede the amount your borrowing so you aren’t at a loss. People who are into real estate know all to well about taking loans out to obtain properties as well as how to make debt work in their favour.
Many entrepreneurs want to start a business and are clueless on ways to access capital. There are however several banks willing to provide loans for start-ups. Here are a few we’ve come across
- Zenith Bank
- Ecobank Plc
- African Development Bank
- Skye Bank
- Access Bank
- First Bank
- Sterling Bank
If you’re already banking with any of the above listed banks, pop in and make inquiries about your eligibility to apply for a loan. Remember to compare interest rates at different banks before taking out the loan.
Please note that a business loan isn’t necessarily the best option for every business! There are other options such as borrowing from friends and family, angel investors, venture capital funding, or crowd funding. So on that note, the primary answer to the question regarding whether a loan is a bad idea for your business, is only you can say! Weigh out your options, calculate your predicted returns and profit as well as interest on your loan. Above all, make sure you have a solid business plan and know that everything you do in business takes a level of risk. If you’re up for the risk, there are institutions ready and willing to give you everything you need.