HOW TO SECURE FUNDING FOR STARTUPS IN NIGERIA
HOW TO SECURE FUNDING FOR STARTUPS IN NIGERIA
In Nigeria, entrepreneurship has become the order of the day due to a couple of factors.
Firstly, there is creativity of the new generation and there is a good number of citizens who are enterprising and business-minded.
Secondly, the lack of sufficient industries for the creation of jobs for the youths who are fresh out of university leads them to either brace up to the whirlwind of owning their businesses or falling into the wrong circle that specializes in attaining wealth via illegal means, for the sake of this article.
Our focus would be the former.
As one who is looking out to start up a business, the first step is usually putting this desire on paper and strategizing a blueprint to start. The second most important step is the hustle or struggle for capital, so if this has been a bone of contention for you, the information provided here might be of great assistance.
There are various ways to secure or attain funding/ financial assistance for a fresh startup in business. Although not limited to this, the methods give a comprehensive summary as to go about securing funds for a startup in Nigeria:
- BANK LOANS
Would it amaze you to know that some Nigerian banks will provide you a loan without requiring you to put up any collateral? It’s as simple as that; you’ll be able to apply for such loans after presenting your business plan and passing various examinations.
Although each bank has its own set of procedures and standards for it. The banks involved are Heritage Bank, First Bank, Diamond Bank, WEMA Bank, and Stanbic IBTC Bank. It might be helpful if you go there for further information.
- BUSINESS GRANTS
There is now a plethora of business grants available for Nigerians who have either started or intend to start a business? If you only had the proper information at the right time. Many Nigerians are increasingly taking advantage of these opportunities.
Nigerians can participate in all of these activities and more. You can apply for them if you are a Nigerian who is at least 18 years old and has a viable business plan. In this post, you’ll learn about eight clever strategies to get the money needed for your new business.
- COOPERATIVES
People join cooperatives for a variety of reasons: some want to use the money they save to purchase lands, while others want to buy automobiles or start enterprises.
To borrow money from these cooperatives, you must have been a member for a certain amount of time, which permits you to borrow a specified amount for a set period of time.
There are numerous benefits to being a member of a cooperative, so if you are not already a member, you should consider joining so that you will know where to go for finances when the time comes.
- CROWDFUNDING
This is yet another unusual method of raising capital for a business. You will most likely get what you want if you can post an appealing business pitch on the internet for people to see so they can invest in your company. This increases your chances of meeting genuine folks who like what you’re doing and want to be large investors in your company. It’s worth a shot because you never know where your money will come from.
- PARTNERSHIP
You may team up with specific corporate titans to help your company reach its maximum potential. It may be a friend who runs a successful company and has some prior expertise. When forming a partnership with someone, a lot of documentation is completed to ensure that the agreement is not abused.
This partner may be able to give what is required in the early stages of the business, or he may simply supplement what you already have.
Read Also: Business Grants for Entrepreneurs in Nigeria
HOW TO SECURE FUNDING FOR STARTUPS IN NIGERIA
- SALE OF VALUED PROPERTY
What valuable assets do you own that could be used to make money? Some people sell all they own just to keep their business afloat. If you’re desperate to start your business, I’m confident you’ll do everything you can to make it happen. As a result, selling what you have is not a bad idea because you can always buy it again once you’ve stabilized.
- FEDERAL GOVERNMENT EMPOWERMENT PROGRAM
Nigeria’s federal government is currently operating an empowerment initiative that provides business incentives to Nigerians who desire to start their own business. It is expected of you to apply for it as well as submit a proposal. A government-created panel will review your application and evaluate whether or not you qualify.
- LOANS FROM MICROFINANCE BANK
The majority of microfinance institutions provide loans to small enterprises. You can approach them and with your company pitch, collateral, and guarantor, you should be able to get business loans. Also, keep in mind that they will include interest rates when it comes to repaying the loan.
- ANGEL INVESTORS
Are you aware that certain investors are willing to provide you with the funding you need to start your business? They only ask for some type of ownership stake in return. This is the option for you if you are willing to accept it.
- MONEY CONTRIBUTIONS
Many people now contribute on a daily or monthly basis to help with their financial requirements. This is usually done by a group of people who, depending on the arrangement, each give a set amount of money. Some take the majority of the money at the end of the month, while others take theirs in subsequent months until everyone has been paid, and then the cycle repeats.
CONCLUSION
Starting a business may be thrilling, invigorating, and exciting. You’re getting butterflies in your stomach because you’re about to add the attractive title of ‘CEO’ to your resume. It’s as though you’re in a dream. Then you’re thrust back into the real world. You don’t start a new business with sand, in reality. You require funds. You’ll require capital for your company.
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