As a business owner, if what comes to your mind right now upon hearing the word business loan is:
“Debt is not good for business”, “Ah, loan lenders enjoy humiliating their defaulters” or “In these economic times, how will I pay back a loan?”
Then, this article is for you.
Granted, a lot of businesses may attain growth organically without the need for external financing. But if low-paying customers, rising costs, and inflation pressures have put your business in financial difficulty then a business loan is a fast and effective option to support your working capital and ensure your business continues to run smoothly.
A business loan can provide the financial support needed to achieve your business goals, ensure the stability of your business, and position it for long-term success. This article provides all the information you need to secure a fast, online business loan in Nigeria.
What is a Business Loan?
A business loan is money borrowed by a business and paid back within a stipulated timeframe. A business loan is a timely solution to cash flow problems – simply borrow the money, pay the money back in short-term installments, and remove the liability from your balance sheet when your repayment is completed. If you’re at a crossroads where the right financial backing can make all the difference, then a business loan is a powerful resource that can help push your business forward.
Who is a Business Loan for?
Any small or medium-sized business can take on an online business loan. However, it is standard for most loan providers to require that your company has existed for at least 3-6 months, has a good credit history, and can pay the loan back.
List of Eligible Businesses for Online Business Loans
- Food businesses (food sellers, local restaurants)
- Provisions or grocery stores (wholesale and retail)
- Cybercafes
- Mobile phone repair shops
- Hair salons or barber shops
- Courier and delivery services
- Cleaning services
- Bookstores or educational supply shops
- Private schools
- Boutique and clothing stores
- And so many other businesses!
Why should you get a Business Loan Online?
If you’re Nigerian, you probably have reservations about getting loans because of the popular conception that owing money is a bad thing. However, there are good reasons to get into temporary debt.
In business, not all debt is bad debt.
When a loan enables you to make more money, then it is a good debt. There are other reasons why you should consider taking a fast business loan.
An online business loan is a smart move for you if you want to…
1. Start a New Business
Starting a business requires a huge amount of capital to cover initial costs such as renting a business space, purchasing inventory, and marketing. A business loan is a straightforward way to finance your entrepreneurial dreams. Adequate funding gives you the liberty to build a strong business model, hire the right team, and launch your products or services effectively.
2. Expand your Business
If your business Is already up and running, growth is most likely your next big goal. Some of the benefits of business expansion include increased revenue, market share, and brand visibility. Expansion can include opening new locations, increasing production capacity, or entering new markets. Business loans offer the capital required to support these new growth goals without depleting your company’s financial reserves.
3. Invest in tools and equipment for your Business
No doubt your business relies on technology and specialized equipment to enhance productivity and efficiency one way or the other. A business loan can provide the necessary funds for when you want to upgrade machinery, purchase new software, or invest in state-of-the-art tools. All these investments are crucial to your business’s success and help you achieve important business objectives such as a higher output, better quality products, and improved customer satisfaction.
4. Cover losses, existing debt or revive a failing business
Every business faces challenges, and sometimes these challenges can lead to financial losses or accumulating debt. Nigeria’s current economic downturn may have placed a dent in your business’s cash flow. Getting a business loan can be a lifeline in this situation, helping to cover losses, restore profitability, consolidate debt, or inject much-needed capital into a falling business.
5. Cover Unexpected Expenses
Unexpected expenses are a part of running any business. Whether it is a sudden repair, an urgent order from a major client, or a short-term cash flow issue, having access to quick funding can make a significant difference. A business loan can provide a safety net, ensuring that unexpected costs do not disrupt your operations or lead to missed opportunities.
6. Protect your business from inflation
Inflation can erode purchasing power and increase costs for goods, services, and wages. Securing a business loan can help you manage these rising costs by providing the capital needed to maintain your operations. Extra funds will enable you to purchase inventory at current prices in bulk, negotiate better terms with suppliers, or invest in efficiency improvements to remove inflationary pressures.
How to Choose the Right Business Loan
While deciding which business loan to choose, it is important to consider your business’s specific needs, analyze different loan options, and understand their terms. For instance, if you need a loan for business expansion, you may want to choose a long-term loan whereas a short-term online business loan will better suit handling unexpected expenses. In addition, you should carefully consider the loan amount you need – borrowing too little or too much may have negative consequences for your business. In all, building and preserving a good credit history (by making loan repayments on time) will increase the chances of securing a favorable business loan.
How to Secure an Online Business Loan
Follow these simple steps:
- Complete the application process online
- Provide basic information about your business
- Get Approved
- Receive the money directly into your business bank account – usually in 24 hours or less
- Use the funds for the business need
- Pay the funds back via fixed weekly or monthly payments
- Clear the loan off within the agreed repayment period and after that, you can take out a top-up to refill your loan account.
Join an a growing community of business owners who access loans based on trust with Moni. With Moni, you ditch the long processes and access the loan your business needs in just 5 minutes. Get started here.
