How New Start Up Company In Nigeria Can Secure Fundings

Finding financial backing for a new startup in Nigeria can be extremely difficult. Having options is important, however, as the right source of funding can mean the difference between success and failure when starting a business. Luckily, there are many ways to secure financing for your business in Nigeria. 

 The first step in obtaining finance should always be to have a good Business Plan. With a good business plan, investors will be convinced that the money they are investing will be put to a profitable venture and they can recover their money back as and when due. Business plan one of the single most important thing all businesses must have. 

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The second step should be to examine personal assets or resources that could potentially be used as capital. These include using savings accounts, selling stocks to friends and family, hiring interns instead of regular employees, and more.

 

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Then look at the government grants provided by some government departments such as SMEDAN (Small and Medium Enterprise Development Agency), NERFUND (Nigeria Economic Recovery Fund) or BPE (Bureau of Public Enterprise). These programs often provide access to funds that can help initiate activities such as market research or product development research/testing before full-fledged products and services are introduced to the Nigerian market. 

 Alternatively, apply to  one of the many venture capital relationships established by  local and international investors who are actively seeking potential candidates offering seed investments, new business opportunities in high growth sectors, internet technology start-ups to renewable energy companies. 

Finally, angel investors in major cities like Lagos, Abuja, Kano, Kaduna and another major cities offer opportunity as these wealthy individuals invest some percentage of their  private equity in companies operating in various locations across Nigeria. 

 

With all this done, search for loans from banks located in major metropolitan areas like Lagos, Ibadan, Asaba, Port Harcourt, Calabar, etc. ; They typically fall into the category of soft loan programs offered directly by federal agencies that are tied to collateral backed by GLDF instruments.  

So it becomes crucial to negotiate the cost of the repayment period up front, not later, hence the failed idea in the early stages in later  debt rollovers don't ruin future corporate budget targets until the final signing  stage of the agreed documents.

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