10 Easy Business Loans to Apply for in 2024

If your goal this year is to expand your business, then you may want to consider some urgent business loans in 2024. A business loan is a financial product offered by financial institutions, such as banks or online lenders, to provide funding for businesses.

It is a form of debt financing where a business borrows a specific amount of money, which is then repaid over an agreed period of time with interest.

Business loans can serve various purposes, including:

• Working Capital
• Expansion
• Equipment Financing
• Start-up Funding
• Debt Refinancing

Business loans may be secured or unsecured. Secured loans require collateral, such as business assets or personal assets, to secure the loan. Unsecured loans, on the other hand, do not require collateral but may have higher interest rates due to the increased risk for the lender.

Urgent Business Loans in 2024

Some business loan application processes can vary among lenders, and each business’s situation is unique.

Here are some business loans you can apply for in 2024:

1. Lendigo Business

Lendigo Business is designed for SMEs registered in Nigeria as LLP, PLC or Ltd. To qualify, your company has to be incorporated for at least two years and should be able to show a minimum turnover of ₦500,000 monthly.

2. Money In Minutes – Business Loan

The goal of Money In Minutes’ Business Loan is to make quick and affordable finance accessible to viable small businesses across Africa.

The loan required a collateral in the form of moveable assets (vehicles and other types of moveable assets).

3. FCMBank – Easylift Loans

FCMB offers the Easylift Loans, in partnership with Mastercard Foundation. Easylift Loans provide support to MSMEs who might have been affected by the effect of the COVID-19 pandemic to strengthen, revive, and expand old and new businesses.

4. Letshego Agricultural Loan

Letshego Agricultural Loan by Letshego Microfinance Bank Nigeria Ltd is for clients in farming, and animal husbandry.

The loan requires the borrower to provide a collateral like an inventory, household properties, cars, buildings, or lands.

5. Zitra Confam

Zitra Confam, a product of Zitra Investment, gives businesses quick, easy and flexible access to business loans tailored to their business requirements.

The loan aims to keep businesses afloat by offering highly competitive rates.

6. Fast Credit SME Loan

Fast Credit SME Loan offers business loans to micro, small and medium enterprises to support business growth.

The loans are backed by guarantors and are for a maximum tenor of six months for business owners that meet the criteria.

7. LAPO Microfinance Bank – SME Loan

The LAPO Microfinance Bank SME Loan is a credit product for Small and Medium Scale Enterprises (SMEs) operators in Nigeria.

With an affordable interest rate, LAPO MfB supports businesses with a credit facility of up to N5,000,000 to expand their enterprise.

8. Mainstreet Bank – Enterprise Loan

Mainstreet Microfinance Bank’s Enterprise Loan is a product designed for entrepreneurs with existing businesses requiring an increase in working capital.

9. NISL Credit – Contract Financing

NISL Credit Invoice Discounting and Contract Financing is a type of loan that provides businesses with a cash advance on work yet to be done. The loan is collateralised by a contract which specifies milestones and payments based on progress toward completing the project.

The Contract financing is usually underwritten based on the terms of the contract and the creditworthiness of the customer, rather than being based on your company’s credit record.

10. Union Bank – Cash-backed Loan

Cash-backed Loan by Union Bank of Nigeria is designed for personal, or business needs fully backed by your investments.

While a business loan can be a powerful tool for growth, careful planning and strategic use of funds are essential.

It’s crucial to assess your business’s financial health, understand the terms of the loan, and ensure that the borrowed funds are invested wisely to generate positive returns.

Each of these funding options has its unique features and benefits, making them suitable for different types of businesses in Nigeria. It’s important for entrepreneurs to carefully assess their business needs and choose a loan provider that aligns with their financial requirements and business goals. nairaCompare has a wide range of loan options you can compare and choose from.

Applying for Urgent Business Loans in 2024

If you’re considering applying for a business loan, it’s important to navigate the process carefully to ensure that you secure the right financing for your needs.

Applying for urgent business loans in 2024 involves several steps to increase your chances of approval and secure favourable terms.

Here’s a general guide to help you navigate the process:

● Assess Your Business Needs

Determine the specific purpose of the loan, whether it’s for working capital, expansion, equipment purchase, or another business need. This clarity will help you choose the most suitable type of loan.

● Review Your Credit Profile

Check your personal and business credit scores. Lenders often consider credit history when evaluating loan applications. Address any discrepancies and work on improving your credit if needed.

● Prepare Financial Documents

Gather necessary financial documents, including:

• Business financial statements (profit and loss statement, balance sheet)
• Cash flow projections.
• Business and personal tax returns
• Bank statements.
• Business plan

● Choose the Right Type of Loan

Explore different types of business loans, such as term loans, lines of credit, or equipment financing. Select the type that aligns with your business needs and financial situation.

● Research Lenders

Research and compare lenders, considering factors like interest rates, fees, repayment terms, and customer reviews. Traditional banks, credit unions, online lenders, and alternative lenders are among the options.

● Check Eligibility Criteria

Review the eligibility criteria of potential lenders. Different lenders may have varying requirements regarding revenue, time in business, and credit scores.

● Complete the Application

Fill out the loan application accurately and thoroughly. Be prepared to provide detailed information about your business, financials, and the purpose of the loan.

● Provide Collateral

Some loans may require collateral. Identify and prepare documentation for assets you can use as collateral, such as property, equipment, or accounts receivable.

● Prepare a Strong Business Plan

A well-crafted business plan can strengthen your loan application. Include details about your business, market analysis, financial projections, and how the loan will be used to benefit the business.

● Review and Negotiate Terms

Thoroughly review the terms and conditions of the loan offer. Negotiate, if possible, especially regarding interest rates, fees, and repayment terms.

● Submit the Application

Once you agree with the terms, submit the loan application. Follow up with the lender to confirm receipt and inquire about the timeline for a decision.

● Monitor and Maintain Good Communication

Stay in communication with the lender during the underwriting process. Provide any additional information they request and be proactive in addressing concerns.

Remember that the lending landscape can change, and specific requirements may vary based on the lender and economic conditions.

You must prepare properly to position your business for a successful loan application.

Factors to Consider Before Applying for Urgent Business Loans

Applying for a business loan in Nigeria is a significant financial decision that requires careful consideration.

Some key factors to keep in mind before applying for a business loan may include:

● Purpose of the Loan

Clearly define the purpose of the loan. Whether it’s for working capital, equipment purchase, expansion, or another specific need, having a well-defined purpose helps in choosing the right type of loan.

● Assessment of Business Needs

Evaluate the specific financial needs of your business. Determine the amount of funding required and how it will contribute to the growth or sustainability of your business.

● Creditworthiness

Understand your personal and business credit scores. Lenders often use credit scores to assess risk. A higher credit score can lead to better loan terms and higher chances of approval.

● Financial Health of the Business

Review your business financials, including profit and loss statements, balance sheets, and cash flow projections. Lenders will want to see evidence of a stable and profitable business.

● Ability to Repay

Assess your business’s ability to repay the loan. Lenders will scrutinize your cash flow and repayment capacity. Have a clear plan on how you will meet the monthly loan payments.

● Type of Loan

Explore different types of business loans, such as term loans, lines of credit, SBA loans, equipment financing, or merchant cash advances. Choose the type that aligns with your needs and financial situation.

● Legal and Regulatory Compliance

Ensure that your business complies with all legal and regulatory requirements. Lenders may inquire about licenses, permits, and other compliance aspects.

● Loan Amount

Determine the appropriate loan amount based on your business needs. Avoid borrowing more than necessary to prevent unnecessary debt burdens.

● Early Repayment Options

Check if the loan has early repayment options or penalties. Some loans may charge fees for repaying the loan before the agreed-upon term.

By carefully considering these factors, you can make informed decisions when applying for a business loan and increase the likelihood of securing favourable terms for your business.

Remember to visit nairaCompare to learn more about business loans and how best to utilise them.