The desire of many small scale businesses is to have enough start up capital so as to enable them get more sales and make more profit in their business.
However, we all know that the reward for investment is profit. When there is little or no money to invest in any small scale business the results will always amount to lesser or zero profits which may eventually negatively affect the business growth and overall status.
One of the recommended solution to this striking problem is to get a small business loan to enable the entrepreneur maximize profits and raise his business to the next level by investing the loan into the business and generating sustainable income which is capable of repaying the loan and also reserving profits for the company.
What is a Small Business Loan?
A small business loan is a money that is borrowed from a micro finance bank or a loan service provider to help in the development and growth of a small scale business.
Small business loans ranges from #200,000 Two Hundred Thousand to #5,000,000 Five Million Naira and is used solely by entrepreneurs to scale their businesses and not for personal emergency usage or otherwise.
Reasons Why Your Small Scale Business Needs a Loan?
1. To develop the business.
2. To produce more goods for sales.
3. To buy more materials and tools required for production.
4. When demand for your products increases and you don't have enough to supply.
5. To pay workers when profits have not been fully made.
How to Get a Small Business Loan in Nigeria
Here is a step by step guide on what to do if you want to get a small business loan for your company as an entrepreneur:
1. Improve your Companies Profile:
Make sure your small scale business is registered with the government and have necessary documentations including; Tax records, pay roll records, cash book containing inflow and out flow of funds that comes to the company, sales record and so on.
This wil enhance a high trust flow and give your company a high chance of getting any loan.
2. Draft your Strategy
Make sure you have a planned out method of how you intend to utilize the incoming loan and also plan how you can repay the loan in the soonest time. This will help you prepare for unseen circumstances such as natural disasters and some other things that may come suddenly.
3. Apply for Loans
Having planned your strategy and ready to kick start, it is recommended to access severally small scale business loans both online and offline, the purpose of doing that is to find the best suitable loan for your company; this involves best interests rates, maximum loan amount and maximum loan repayment period. After searching you'll surely find one that suits your business, then you go ahead in applying for it.
Conclusion
Every business, especially small scale businesses usually needs enough start up capital. While depending on loans to completely fund your business may not be a good idea, you can always use small business loans to improve your already existing businesses.
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