One of the toughest parts of starting a business is getting fundings or credit facilities. Most times, people come up with great, viable ideas of businesses and draw up a business plans on how they hope to actualize the business dream and achieve success, but a lack of capital soon sees these business ideas dying a slow, painful death.
There are a lot of bodies that have taken the challenges Nigerians face raising capital and have extended programmes to budding entrepreneurs and now you can get grants or low interest loans to finance these business dreams.
Here are a few of them:
1. Crowdfunding Websites
This is one of the best and fastest ways to raise the needed capital for your dream project. The way crowdfunding websites work, you sign up and create a request detailing your need and why you need money.
People who see this request contribute towards it anonymously or otherwise. The beauty about getting start-up capital through crowd funding is that you arent required to pay back.
2. Business Plan Competitions
From the name, a business plan competition is a competition of business plans; people write detailed business plans which are entered into the competition to vie for cash or any other gift. It’s a good way to raise seed money for your business.
Some good examples of such competitions includes She Leads Africa Accelerator Program (SLA) which was just concluded in June, 2017, the Tony Elumelu Foundation Entrepreneurship Programme which also just got concluded, and the BMCE- Bank of Africa-Africa Entrepreneurship Award for Women.
3. Angel investors
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Angel investors abound and will provide the seed capital you need in exchange for equity. Most angel investors go for around 20-30% of your equity, but it is most times worth it as they are investing in a start-p with the 100% guarantee of success.
4, Cooperative Societies
Many business ideas have been developed into full-blown, thriving business through the financial support of cooperatives. You join a corperative and are usually eligible for a low-interest lian after a period of time.
5. Private Loan Organizations
Private loan organizations also exist to provide you with a loan. Sometimes, these organizations provide these loans at very low interest rates and without collateral.
6. Bank of Industry (Boi)
Bank of Industry exists to transform the Nigerian industrial sector for good. It was set up in 2001 and exists to provide fiancial assistance and business support to enterprises.
You can get access to loans from BOI but you should know that BOI wont give you the loan directly, but would rather pay your supplier or vendor to curtail abuse. So contact a supplier and get the process under way before approaching BOI.