Nigeria is one of the most difficult countries globally to secure a loan for your business, and this tells why our economy is suffering.
Though, I do not blame the financial institutions, because most times due to poor business management skills most people who manage to secure these loans find it difficult to payback.
But these are the things you should do in order to secure funding for your business if you are an entrepreneur.
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1). SECURE LOAN WITH YOUR SALARY ACCOUNT
Most banks are ready to give you a reasonable amount of loan if you have your salary account lodged with them. The bank in return deduct a fixed amount from your salary at the end of every month to offset your debt.
Do know there are terms and conditions you have to study properly before you apply for these loans.
If you have a collateral then this is the most easy way to secure a loan from any bank. Take for instance you have a landed property worth 5 million naira and you need a loan of 2 million niara, the banks would gladly issue this loan to you because you have a security (the property) the financial institution can sell off if you fail to pay back.
3). Purchase Order
When you have a Purchase Order (PO) from an organisation, you could visit your bank to seek funding to carry out the supply. Most banks would usually require you present a collateral before they can fund the supply. But on special cases, and depending on the company size of your client, the bank may fund the Purchase Order (PO) without requiring a collateral.
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4). INVOICE DISCOUNTING
This facility is mainly for those who are contractors, if you are a contractor and you have a track record of outstanding invoices for debts owed, then it will be very easy to secure a loan from most banks.
For example, perhaps you run a supply chain business and are expecting an outstanding payment of 1 million Naira from an organisation, you could borrow up to 70% to 75% of the value of the invoice from a bank to finance your next supply, pending when the debtor pays up.
Most banks give loans to individuals with outstanding invoices because it is safe due to the outstanding invoice you left with them.
Besides the above named facilities, there are other means available for you to secure loans for your business like the Letter of credit and advance payment guarantee.