MSME - Funding, Lending & Credit | |
MSME - Funding, Lending & Credit | |
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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.
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