Access to startup capital is one of the most significant challenges for entrepreneurs and small business owners in Nigeria. Many promising ventures have failed due to the lack of adequate funding, leaving a void in the market and hindering economic growth.
This article highlights the best business loans available in Nigeria for 2024, offering solutions to the financial needs of small businesses.
Why Businesses Need Loans
Businesses require loans for various reasons, including:
- Startup Capital: Initial funds to launch and establish the business.
- Expansion: Capital to open new locations or scale operations.
- Inventory Stocking: Funds to purchase inventory, especially during periods of high inflation.
- Equipment Purchase: Investment in new equipment or technology.
- Advertising: Budgeting for marketing campaigns to increase reach.
- Cash Flow Management: Maintaining daily operational costs.
A business loan can be the key to unlocking new opportunities and sustaining growth.
Best Business Loans for Small Businesses in Nigeria
Below are the top lenders offering business loans to small businesses in Nigeria:
1. Advans Nigeria
Advans Nigeria is a microfinance institution that provides working capital to small and large businesses. Their services are tailored to meet the unique needs of each business.
- Loan Amount: Up to N150 million.
- Eligibility:
- Must be 21 years or older.
- Must be a Nigerian or have resided in Nigeria for at least 10 years.
- Business must have been in the current location for at least 12 months.
- Application: Check their website or download the Adspire app for details.
2. Standard Chartered SB Loans
Standard Chartered Bank Nigeria offers Smart Business Loans (SBL) designed for business expansion.
- Loan Amount: Up to N20 million.
- Repayment: Flexible terms up to 24 months.
- Collateral: No collateral required.
- Application: Visit their website for more details.
3. Renmoney
Renmoney is a top lending company in Nigeria providing loans to new and growing businesses.
- Loan Amount: Up to N6 million.
- Repayment: Flexible plans up to 24 months.
- Application: Entirely online, making it convenient and quick.
4. Moniepoint Small Business Loans
Moniepoint offers Working Capital Loans to businesses, with repayment terms tailored to the business’s cash flow.
- Repayment: 7 to 120 days, renewable.
- Eligibility: Solid credit history determined by Moniepoint’s credit score algorithm.
- Application: Through Moniepoint accounts.
5. ALAT Small Business Loans
ALAT provides loans specifically designed to support SMEs, offering more than just cash by including advisory services.
- Loan Process: Fully digital, minimizing paperwork.
- Requirements:
- An ALAT account.
- Business registration with the Corporate Affairs Commission (CAC).
6. FairMoney
FairMoney is widely popular for personal loans but also offers business loans to SMEs.
- Loan Amount: Up to N5 million.
- Collateral: None required.
- Eligibility: Based on smartphone data and credit history.
- Application: Through the FairMoney app.
7. Lendigo Nigeria
Lendigo is a client-centric financial technology firm focusing on SME growth.
- Loan Amount: Varies based on business needs.
- History: Over ₦6 billion disbursed to more than 2,000 SMEs.
- Application: Quick and easy access via their platform.
8. Baobab Group
Baobab Group caters to businesses of all sizes, offering a variety of loan types.
- Loan Types: Microloans, Mini microloans, Micro plus loans, SME loans, Cross and Group guarantee loans.
- Application: Online application with minimal requirements.
9. Okash
OKash, financed by Blue Ridge Microfinance Bank Limited, provides quick access to personal loans that can be used for business purposes.
- Loan Amount: Between N3,000 to N500,000.
- Availability: Accessible 24/7.
- Application: Through the OKash app.
Conclusion
Securing funding for small and medium-sized enterprises (SMEs) in Nigeria has historically been challenging. However, the rise of fintech companies has revolutionized the lending landscape, making business loans more accessible than ever.
These nine lenders offer a range of options to meet the diverse needs of Nigerian entrepreneurs, enabling them to launch, grow, and sustain their businesses.