Business Loan: How To Ask Your Banker And Get It
One of the most important steps you should take when in need of a business loan to finance an existing or new enterprise is to prepare a good business plan and then present it to your banker.
Presenting a good business plan to your banker, will make a good impression about you and how professional you are before your banker.
When it comes to obtaining business loan in Nigeria, most banks in the country have similar requirements but for Agricultural related business loan a special requirement is needed from customers.
Below are the general and special requirements for obtaining a loan from banks in Nigeria.
A clear statement of the AMOUNT of money needed as business loan.
A clear statement of the PURPOSE for the business loan.
The PERIOD OR TERMS of the loan.
Your BUSINESS PLAN. (If it a new enterprise or expansion of an existing one) Including an authentic financial report of the performance of your business, if it an existing one.
Your MANAGEMENT BACKGROUND AND COMPETENCE. The banker is very much interested in learning about your management background because without a competent management the enterprise will run into trouble and the repayment of the business loan becomes very difficult.
Your REPAYMENT arrangements: The banker will be eagerly interested in knowing how you plan to repay the business loan. Hence, he will like to evaluate your cash flow forecast.
Any SECURITIES OR COLLATERAL you want to pledge. Bankers, in general and especially in Nigeria may want all sorts of securities. You will therefore be well-advised to find out from your pre-application interview with the banker what kind of securities is acceptable to the bank.
SPECIAL REQUIREMENT FOR SOME BANK LOAN.
Here are the special requirements for granting agricultural loans to bank their customers in Nigeria.
A certificate of occupancy for the agricultural land where you plan to farm.
A certificate of valuation of the land.
A survey report of the acreage.
Thanks for taken time to go read through this article, I believe with the information gotten so far, asking and getting a loan from any bank in Nigeria (Gtbank,First Bank and Zenith Bank e.t.c) will no longer be a problem.
Also, I would want you to go through some profitable ideas in Nigeria whose links are listed below.
These are businesses that will make you smile to the bank continuously.
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I wish you the best in all your endeavors.