BUSINESS LOANS IN NIGERIA: PROS AND CONS

 HERE IS THE SECRET WHY 80% OF BUSINESSES IN AFRICA FALL TO THEIR KNEES WITHIN 5 YEARS OF ESTABLISHMENT EVEN WITH A KEEN EYE ON BUSINESS

‘Only 4% of MSMEs have access to credit in Nigeria’

The Credit Bureau Association of Nigeria (CBAN) has stated that despite efforts by the Central Bank of Nigeria (CBN), credit bureaus, and financial institutions to make loans accessible to Micro Small and Medium Enterprises (MSMEs), only 4% out of the 40 million MSMEs in the country have access to credit.

According to the Managing Director, Chairman Credit Bureau Association of Nigeria, Dr. Tunde Popoola, stated that the major challenge to MSMEs is lack of  access to loans. And how to solve this problem is by capacity building and awareness creation for small businesses.

Issues hindering the growth of MSMEs also included:

*lack of adequate bookkeeping, 

*inadequate capacity to present good business plans,

*inadequate business presence 

*challenge of providing collateral to be used to access credit. 

MSMEs remain the bedrock of the economy. Bookkeeping gives small business access to loans for business expansion. MSMEs must take cognizance of the 3Cs to get easy access to credit from financial institutions. “The 3Cs include capacity, character and capital. A good financial record keeping demonstrates the capacity to pay back loans while also showing that you have a consistent income to pay back loans while character is another quality MSMEs must have to get access to loans because it shows your willingness to pay back.

Therefore, are you a woman? Do you live or do business on Nwaniba road, Uyo? Can you gather a minimum of 5 trustworthy business women together to access a loan/credit facility of N100,000 each? Do you need a business loan to stock up your shop or revamp your dying business place? 

Look no further, rather call Grace and Mercy Household Improvement Initiative on 09056300278 or visit our office on #433 Nwaniba road, Uyo - Akwa Ibom. Note: Registration is only N1050. I suggest you register immediately because as a business person, you can never tell when you'd need quick access to emergency funds to fortify your business.