There aren’t enough loans in Nigeria, which accounts for a big percentage of the country’s loan shortage. In actuality, the nation’s firms have easy access to loans. These loans do, however, come with stringent restrictions for qualification. It is because of this that they seem to be unavailable. The most significant obstacle that startups have is supplying collateral as security for a loan. This is because most startups aren’t eligible for most commercial loans because they don’t have any assets yet. Here is a list of Nigerian institutions that offer starting business loans devoid of collateral.
Entrepreneurs can finance and start new business initiatives with the help of a startup business loan. Startup loans, akin to business accelerators and incubators, are beneficial for individuals in the first phases of an established enterprise.
Startup Loans
Businesses can get secured or unsecured startup financing. Collateral is a requirement for secured loans but not for unsecured ones. Unsecured loans are more difficult to receive because they don’t require collateral, and when they do, the interest rates are typically greater than those of secured loans.
Startups can get assistance from the Nigerian Small and Medium Enterprises Development Agency, or SMEDAN, in locating loans and other funding sources.
How Do Startup Loans Work?
Usually, a lender requires you to fill out an online application. To help the lender better understand your circumstances, including how much you need and why you need the loan, you will give details about your company.
Some lenders will want a business plan and cash flow prediction as part of your application before determining your eligibility. Your loan should be authorized as long as you can provide adequate evidence of your ability to repay the loan and the strength of your business plan. Once the money is in your bank account, sign the loan agreement. You will then start repaying the loan gradually in accordance with your credit arrangement.
Advantages Of First Loans
- You’ll have enough cash to launch a company.
- You continue to be the sole owner of your company.
- Your company’s credit history can be established.
Startup Loan Disadvantages
- Can be challenging to qualify for, and you might not know how to spend the funds most effectively.
- Your credit report may be in jeopardy.
- Where To Get Startup Loans In Nigeria
Companies That Give Startup Loan In Nigeria
The following organizations provide beginning company loans without collateral In Nigeria:
1. Kiwipay [kiwigo.app/kiwipay]
Kiwipay, one of the best startup lenders in Nigeria, offers loans to individuals and businesses via their jobs. Moreover, they take the loan amount out of your monthly paycheck. Furthermore, Kiwipay is particularly outstanding in that it offers loans up to N2 million.
2. Branch [branch.com.ng]
Despite providing initial business loans without the need for security, branch only offers a maximum amount of N150,000, which is a very small amount. Nonetheless, they provide loans to new businesses and people who need to close immediate gaps in their finances.
3. Carbon (previously Paylater) [getcarbon.co]
Paylater, which changed its name to Carbon thereafter, is an entirely online lending platform that enables you to get loans for your business. The loan has a N500,000 maximum amount and doesn’t require collateral. It’s amazing how easy it is to apply with them, and the money is disbursed within a day or three after your application. Additionally, timely loan repayment enables you to apply for a subsequent loan with a greater maximum amount.
4. Specta By Sterling Bank [www.myspecta.com]
Specta by Sterling Bank is one of the quickly expanding lending platforms that provides financial services to both people and SMEs. Owned by Sterling Bank, Specta gives you the ability to get up to N5 million in five minutes. Moreover, corporate and business owners can readily receive and utilize it.
5. SMEDAN [smedan.gov.ng]
Smedan’s purpose is to finance small and medium-sized businesses, which in turn helps them grow. But in addition to keeping an eye on things, they also organize, propose, and explain policy suggestions for companies operating in these industries, which helps them expand.
6. Fast Credit [fastcredit-ng.com]
Quick Credit provides you with short-term loans to help your business expand. Notwithstanding the lack of collateral, guarantors must guarantee the loans. In addition, the maximum term for enterprises that meet the requirements for the loan is six months.
7. One Fi [coolfinance.com.ng]
Previously known as One Credit, One Fi is a lending company that provides SMEs with short-term services. Before approving you, though, they run a creditworthiness background check. Their loan has a maximum sum of N200,000 and a tenure of roughly three to six months.
8. C24capital.com
In actuality, C24 is a microfinance organization that was founded with the express intent of assisting businesses in realizing their goals. They achieve this by making necessary financing accessible without requiring collateral. Additionally, the C24 loan period is substantially shorter than that of traditional rates, and applying online is convenient.
9. Zedvance.com
This is an additional lender that does not require security. You can apply for up to N5 million with a maximum 18-month term with Zedvance. It’s amazing how quickly you can finish the entire process and receive credit.
10. Grofin [grofin.com]
Grofin is an organization that offers investment services to companies throughout the Middle East and Africa. In addition, they finance small and medium-sized businesses in a number of countries, including Ghana, Nigeria, Ivory Coast, and South Africa. Grofin provides a maximum of $1.5 million in this scenario.
11. Kiakia.co
When making loan offers, Kiakia.co does not take your credit information into account. Rather, they credit-score you using an intricate machine learning and digital forensics system. If approved, you can access large amounts for your business financing. Currently, Kiakia offers loans to millions of people nationwide as well as SMEs.
12. Lydia.co
Lydia.co is an online lending company that offers startup business loans in the US, Europe, and Nigeria without the need for collateral. Lydia thus presents you with a chance to grow your company and make more money. Their loans come with quantities up to millions of dollars and may be obtained in three easy steps.
13. Aella credit [aellaapp.com]
Aella credit is a mobile Fintech company that uses technology to connect with SMEs in the loan market. They also want to develop products and lead the way in financial inclusion in Nigeria and other West African nations. Their influence is growing every day.
Final Thoughts
These organizations have greatly facilitated Nigerian nationals’ ability to obtain startup company loans without the need for collateral. You should definitely contact one of them for their services if you plan to launch a business. For example, an entrepreneur anywhere in Nigeria might make a substantial sum of money from the sources mentioned above to open their own business and operate more effectively. A crucial point to remember is that, before committing, you should make an effort to review further loan specifics and consult a financial specialist.