17 Loans for Small Businesses in Nigeria

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Best Loans for Startup Businesses in Nigeria

Today, we will be looking at the best loans for small businesses in Nigeria

  1. Cedar Microfinance Bank
  2. Specta by Sterling Bank
  3. Pennylender
  4. Lydia.co
  5. Kaikia.co
  6. Grofin
  7. Onefi
  8. Alat by Wema
  9. C24
  10. Quick Check
  11. Aella Credit
  12. Zedvance
  13. Ren money
  14. Smedan
  15. Fast credit
  16. Grofin
  17. Others

Loans for Small Businesses in Nigeria

Wondering how you can secure a loan for your small scale business in Nigeria?

You are in the right company.

I’ll take you through how you can get loans for your small scale business here in Nigeria and expand your ministry…..your business, I mean.

I am of the school of thought that funding is not the most important factor that determines success in any business, big or small. And loans are the last options you want to go for.Lady gets loan for startup business in Nigeria

The fund, loaned, or given gratis, could get in the way of potentially successful small businesses and startups and such from achieving their goals and of course, scaling up.

On the other hand, many viable business ideas have died in the belly of their owners or at best after a few years in operation due to lack of needed funds to inject into the business and grow it.

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So, while capital solely does not determine the success of your business (market viability, product viability, business model, etc. do), the right amount of funding just at the right time will do a lot of good for any scalable business to achieve their profit goals.man loan for small business in Nigeria

To put this in context, take a business that deals in wigs for example. Human hair wigs for the upwardly mobile.

If you are into that sort of product, you do not necessarily need any funding to start. Yes, I say so!

All you need to do is to put your internet data to good use. Instead of following celebrities on IG up and down, Open an Instagram business page and start publishing intentionally promotional posts of your business – in this case your wigs.

13 Tips: How to Become a Social Media Influencer in Nigeria

Fine, you do not have the money to buy the wigs already right? Okay, get pictures online (at least you know how to Google); get the pictures from distributors who you intend buying from… just make sure you get good pictures to represent your kind of brand.Wig seller finds loan for startup business in Nigeria

Accompany your posts with great well written emotive captions and follow these other tested strategies I shared on how to promote your business on Instagram for free. 

Once orders start knocking at your DMs, then all you’ll need is get the specifications of your potential customers and send to your wig distributor who then sends good to you and then you to your customer.

Make sure the buyer sends money before you get the goods across to them, this is very important. Also, ensure you work with a trusted wig merchant, please there are way too many 419ners in this country.

With an increased order, you could then think of growing your business. You may want to have a warehouse or get one or two staff on-board, etc. In any case, you now need some funding for your small business.Man gets loan for his small businesses in Nigeria

Difference between Small business and startups

Now that I have convinced you – I hope so – that when it comes to business, especially, small scale businesses, money is not everything, in fact, money is the last thing you need.

Now that you have to inject funds into your business or else you will kiss it goodbye, you may need to get some loans after exploring these surefire ways to raise funds for business in Nigeria. Remember, loans are always the last option for business owners.

Here are the top 17 Loans sources for Small Scale Businesses in Nigeria

If you are thinking of where to borrow money to start a business, then this list is a great help.

  1. Cedar Microfinance Bank

What they do: Cedar Microfinance Bank is a Financial Institution that recognizes the different needs of their unique and different customers and provides suitable financial services.

Who they finance: Small business owners, school fees loans, etc.

Loan size: Loan sizes range from ₦200,000.00 to ₦500,000.00

Repayment Period: Up to six months.

  1. Specta by Sterling Bank 

What they do: Specta is an online lending platform that gives you loans in 5 mins!

Who they finance: Loans to entrepreneurs in Nigeria, employed and youths

Loan size: Up to 5 million

  1. Pennylender:

    What they do: Pennylender is a lending platform that provides access to credit at lower borrowing costs for millions of Nigerians that other lenders are unable to serve.

Who they finance: Entrepreneurs who need financial assistance for their small scale businesses.

Loan size: N10,000 – N500,000

  1. lydia.co 

What they do: They are an online platform that provides loans for small businesses to give them the opportunity to expand their businesses and generate more income. They are in the USA, Nigeria, Poland, and the Czech Republic. Loans are accessed in three steps.

Who they finance: Loans to entrepreneurs and small scale businesses.

Loans for small businesses in Nigeria

  1. kiakia.co 

What they do: They help Nigerians have access to personal and small business loans, and also enable savers lend out funds at negotiated interests through intuitive conversations.

Who they finance: Kiakia loans provides financial services for entrepreneurs and small businesses.

Loan size: Up to N500,000

Loans for startup businesses in Nigeria

  1. Grofin

What they do: GroFin provides investment finance and business support to growing businesses in Africa and the Middle East.

Who they finance: GroFin provides Small and Medium Enterprise (SME) finance/business loans in South Africa, Zambia, Nigeria, Ghana, Ivory Coast, Senegal, Uganda, Tanzania, Kenya, Rwanda, Egypt, Iraq, Jordan and Oman

Loan size: US$100k and US$1.5M

  1. Onefi

What they do: OneFi is on a mission to democratize access to finance by leveraging data and technology. Our lending process is fully online via the Carbon Mobile App.

Who they finance: Businessmen and women, employers, employees, etc.

Loan size: Up to 1,000,000Young man gets small business loan in Nigeria

  1. ALAT by Wema:

What they do: They provide access to loans without paperwork, no visitation to any physical location and response time between acceptance of offer and loan disbursement is in minutes.

Who they Finance: Open to all validated customers.

Loan sizes: Up to N200,000

  1. C24

What they do: they provide Nigerians with an online loan application that can be completed within 5 minutes. Their loans are flexible and have great rates.

Who they finance: They provide personal loans, business loans, and quick cash.

Loan size: As much as N5,000,000

Loans for small businesses in Nigeria

  1. Quick-Check 

Who they are: They provide digital financial services to help you get closer to your personal and business goals.

Who they finance: Individual and businesseswoman gets loan for small businesses in Nigeria

Loan size:

  1. Aella-credit

Who they are:  They exist to simplify and open up financial access for all in emerging markets – by leveraging technology and widespread mobile adoption, they build products to make an impact at the frontier of Financial Inclusion. They operate in other African countries like Ghana.

Who they finance: All but they believe in, and support women and women-owned businesses, and they represent 45% of their active user base.

  1. Zedvance

What they do: They provide access to quick loans without collateral. Users can apply for up to 5million naira with loan tenors of up to 18months and have their money sent straight to their bank account in minutes.

Who they finance: Small business owners and others.

Loan size: Up to N5,000,000

  1. RenMoney 

What they do: they provide convenient loans to meet your financial needs of Nigerians.

Who they finance: Employees and small and medium-sized  business owners

Loan size: ₦4,000,000 today.

  1. Smedan 

Who they are: Some of their mandates are Stimulating, monitoring and coordinating the development of the MSMEs sub-sector; initiating and articulating policy ideas for small and medium enterprises growth and development.

Who they finance: Small and medium enterprises

  1. Fastcredit

What they do: They provide value-based lending to this bottom of the pyramid that may not have access to credit from the traditional banking system in line with the financial inclusion policy of the Central Bank of Nigeria.

They are in over 5 states in Nigeria.

Who they fund: Personal loans, SME loans, corporate partnership (group) loan.

16. This is where you contribute your own input. What credible platforms do you know that loan startup businesses in Nigeria? Feel free to comment in the comment section below.

Other frequently asked questions are:

Where can I get a loan to start a business in Nigeria?

You can get a loan to start a business in Nigeria from online loan platforms like: Cedar Microfinance Bank, Specta by Sterling Bank, Pennylender, Lydia.com, Kaikia.co, Grofin, Onefi, Alat by Wema, C24, Quick Check, Aella Credit, Zedvanc, Ren money, Smedan, Fast credit, Grofin, and some Others.ladies get loans for small businesses in Nigeria

How do I start a money lending business in Nigeria?

You can start a money lending business in Nigeria getting data (phone numbers and other contacts) of small business owners who may need money. Then reach out to them offering different loans and packages that you have for them. Then, of course, you need some money to loan out.

Can I get loan for start up business?

Yes, you can loan for your startup business. You may find angel investors who are interested in funding your business or equity investors. Or you may lend money online from Apps that loan startups like Quick Check, Aella Credit, Zedvanc, Ren money, Grofin Fast credit, etc.

Rounding Up

There you have it. Thos are some loans for startup businesses in Nigeria. Is there anything I left out? Please share in the comment session.

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Cheers!

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