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Getting the Finance to Start a Business in Nigeria

MSME - Funding, Lending & Credit	10321 VIEWS
MSME - Funding, Lending & Credit
10321 VIEWS

Monday, June 25, 2018 8:00AM / OutreachXpert.com

Starting a business can be a real challenge these days, as you have so much to consider and organize. At the same time, there are many elements that are far easier than they used to be because there are more opportunities and options available. If you are looking to start a business in Nigeria, you need to make sure you put in a lot of research beforehand to help the process run smoothly and boost your chances of success.

One of the things you will need to consider when it comes to your new Nigeria business is getting the necessary funding. You need to think about money for your startup costs as well as money that you can use for the day to day running of the business such as working capital business loans. By looking at all the options open to you, it will be far easier to sort out your business finances and enjoy greater peace of mind.

Some Options to Consider For Your Startup Funding

There are various options you can consider when it comes to your startup funding. You may be able to get a business loan from your bank or from another lender. Make sure you have a good business plan available as this is something that the bank will need to see as part of their decision process. Also, make sure you check your credit score and rating first, as this could impact on your eligibility for a standard business bank loan.

Another option is to use a business credit card, although this does depend on the amount you need to start your business. You need to work out what your startup costs are and then determine whether you can get a credit card with a high enough limit. The downside of credit cards is that you will be charged much higher rates of interest on your borrowing unless you can repay the balance in the interest free period. In addition, you will need to have a good credit score to get a credit card that does not come with eye-watering interest rates.

You could turn to private investors for funding if you think that your business idea is one that will generate interest. Again, you should make sure you have a solid business plan for potential investors to see because this will help them to make their decision. You also need to make sure you find the right investors with an interest in the type of industry or area of business that you are working in. There are also crowdfunding sites, which may be more suited to your needs depending on the type of business venture you are starting.

Finally, you could look at using your own assets to raise the funding for your startup business. For instance, if you are a homeowner and have some level of equity in your property you could borrow against the equity and get the money you need for your business.