IS YOUR BUSINESS BANKABLE IN NIGERIA?
Every entrepreneur screams loan. Somebody once said I need someone who will give me a loan and leave alone. This is the most incredible thing have ever heard anyone say. Who even thinks about that? Banks are not scary wolves that chase away loan-seeking entrepreneurs the way they are poised but is your business ready for a bank loan? That’s a question you should ask yourself cautiously and diligently. You should also find out what your proposed bank interest rate looks like.
If after all this consideration, you still stick to desiring a bank loan then we will need to check if your business is bankable.
These are key elements you need in setting up yourself and your business for success, not just in raising a loan from banks, but in sustaining your business:
A good business plan
Clean credit rating
Show a significant personal investment
You possess sufficient collateral, future cash flow, and a high probability of success
Bankable business plan First, you need to have a bankable business plan. We shall take time to discuss this in details in future series. But it is important to note that developing a plan will organise your thoughts and provide direction. You may need to engage the services of Business Development Support Providers (BDSPs), some of which have been accredited by some banks including Bank of Industry, BoI, for this purpose.
Get managerial, financial and marketing skills from the BDSP. It may form part of the initial engagement you have with whichever one you are working with and it doesn’t have to be a separate contract. Better still, you can get mentorship from whoever you see successful or succeeding in the same or similar area of business.