How to get Financial Assistant to Start an Export Business?
Starting an export business is serious business. Thankfully,there is a reliable partner that offers this support. This support is provided by no less a partner than The Nigerian Export Import Bank (NEXIM). It provides this support through its Export Credit Guarantee Facility and it’s Export Trade Support Facility among others. These ensure that you get the much needed support you need. For further details, visit it’s website
If you want to get financial assistance for your business, you can borrow money from your friends and relatives, and apply a loan from the bank. But I really don’t think it is a good idea for you start a export business considering its fierce competition.
Although There is hardly a business with no competition. I am not going to tell you the requirements to get loan from a bank because various banks with various requirements.
But however, i am going to tell you some things you need to know before you make this choice:
Every business at some point in its operating cycle will require some form of finance to pay its short term indebtedness or to fund new projects or business plans, or to acquire operating assets
Things you need to know
1. You need to formally apply to a bank for a loan
2. Banks charge interest on a per annum basis and they are not fixed– Banks do not charge interest rates per month but per annum. What this means is that when a bank offer a 20% interest on a loan it is per annum and not per month. For example, when you apply for a loan of N1million for a 3 month tenor at an interest rate of 20%, your interest will be N50,000. Which is 20% of N1million apportioned for just 3 months out of the 12. However, it can actually be lower depending on how often you repay the principal.
3. Different banks offer different interest rates and terms and conditions
4. Never ignore the terms and conditions – When gives you an offer letter they aways include a set of “Other Terms and Conditions” or “OTC”. Usually, they differ from the conditions like collateral, interest rate, tenor (Terms and Conditions or TC) that most people prefer to look at
5. Banks always ask for a collateral or some form of security – Banks no matter the type of loan you ask for will ask for some form of collateral. It could be a landed property, asset or even your personal guarantee. Sometimes they remember to register claim to these collateral in the court and sometimes they don’t.
6. Defaulting on repaying your bank loans when their due doesn’t mean the bank will take over your business – Yes, banks like to avoid the court as much as you do and quite frankly want you to succeed because your success and theirs is directly proportional. If you can’t pay back all of your loans, it is better to pay a portion of it that you are able to than not pay at all
7. You can always attempt to refinance or restructure your loan – Following from above, you can always approach your bank to restructure your loans if you think the current terms are not favorable to you
8. You can ask your bank for a moratorium – A moratorium is simply a bank permission to a borrower to suspend repayment of principal for a period of time.
9. The biggest threat to defaulting is not your interest rate but your Debt Service Coverage Ratio (DSCR)
10. Banks have hidden charges
Get loans without Collateral
You can actually apply for a loan without collateral. The loans are offered to SMEs (small medium enterprises)
You can get them from these banks. I am not 100% sure about if the SME prgramme is still active but you can give it a try
1. Zenith Bank
Zenith Bank is arguably one of Nigeria’s megabanks where individuals and firms can access loans to boost up their lifestyle or bring progress their businesses.
2. First Bank Plc
In other to power growth in the SME sub-sector, First Bank of Nigeria has made plans to provide non-collateral loans for small and medium enterprises.
3. GTI Microfinance Bank
GTI MFB offers loans to individuals, Small Scale Enterprises and Corporate bodies and their tenor range between 6 months and 48 months.
4. Diamond Bank
5. Bank of Industry
This bank, which is reputable for its integrity, grants loans to entrepreneurs to grow their business. If you are an entrepreneur that needs loan from Bank of Industry, visit www.boinigeria.com
6. Fortis Microfinance Bank
Fortis MFB is Nigeria’s best Microfinance bank that has helped many individuals and corporate organizations to bring fulfilment to their dreams through assisting them with loans of all sorts.
Walk to any bank of your choice, and tell them you want to apply for a load. They will give you everything you need to know.
KFC in New York was rejected thousands of times before he could get started.
If you are sure of your dream, go on and apply.
Please let me know if this helped