Small business owners can be wary of taking out a business loan when business funds are low. They fear several risks; high and unstable interest rates, giving up a percentage of ownership stake in the business, non availability of collaterals and ultimately having to be responsible for the loan, if the business packs up. But tricky business loans are not the only problems that plague small businesses in Nigeria.
Building a profitable business in the country comes with a myriad of challenges. Poor business knowledge, adverse governmental policies, inefficient visibility and marketing techniques, inadequate infrastructure, as well as work-force hitches are among the problems faced by small businesses in Nigeria.
However insurmountable these problems might seem currently, it is important to bear in mind that nothing worthwhile comes easy. As a matter of fact, a lot of mega profitable businesses in the world today developed as solutions to the world’s biggest problems. So, fear not.
In this post, we’d give a complete rundown of challenges of running a business in Nigeria, as well as top tips to ensure that your business stands an 80% chance of Profitability.
Reasons Business Loan can help your business
- Increase in Working Capital: External Finance through business loans is a quick, easy and effective way to solve whatever cash flow problems you might encounter in your business.
- Structured Finance: The responsibility of servicing a loan can come with a potential benefit – it helps you employ the fiscal discipline and accountability needed to have a structured form of Finance in your business.
- Purchase Equipment: Your Short-term business obligations, like equipment purchase can be met easily through infusions of capital through business loans.
- Business Expansion: If you have a proven business model and a well-planned strategy for expansion, a business loan can be exactly what you need to attain your growth goals, expand your operations and increase profits.
How to ensure your business stands an 80% chance of profitability
- Accept the risks: No risks, no gain right? Even in developed countries, running a business comes with a boatload of risks. Accepting the risks associated with entrepreneurship early on gives you a head start and the right mindset to give business challenges your best shot.
- Mentorship: A good mentor can be an invaluable asset, helping you achieve success earlier than you might have on your own.
- One business at a time: Focus is key when running a business. It is always wise to project your time, and energy on a business rather than spreading your resources thin on several businesses.
- Be open to coaching: just like mentorship, coaching can be your cheat code to learning the experience, crucial for business success.
- Work with like-minded people: Having the right team members with similar work ethics and values is similarly important.
- Make your business your passion: you don’t necessarily have to enjoy the specifics of your business but you can sure enjoy closing deals and making sales. Passion makes all the difference.
- Seek knowledge: there are great online articles, podcasts etc. geared towards helping you succeed as an Entrepreneur. The ALAT talk series is one of them.
- Take a business loan: If you’re a business owner in Nigeria, you have to recognize that the presence of healthy cash flow is essential to the growth and continued establishment of your business. Accessing external finance is an important factor in maintaining healthy cash flow.
Most small to medium scale entrepreneurs in Nigeria base their business growth plans on what they can afford themselves and would prefer slower growth rather than borrowing to expand faster. But accessing a business loan can make all the difference in how fast and how well your business develops. Loans can help your business get through a dip, structure your finance, aid expansion, increase working capital and ultimately help your business succeed.
Wema Bank Loan Rates
If you’re wondering where you could easily access external Finance for your business, we’ve got you covered. WEMA bank provides flexible loan packages and SME finance for small businesses with highly competitive rates. They have a variety of best small business loan offers as well as programs designed to educate Entrepreneurs on thriving in the business world. Unlike loans from loan sharks that can have an interest rate of as high as 45%, WEMA bank business loans have a monthly interest rate of 2%.
How to apply for business loan from WEMA
To apply for a WEMA business loan, simply follow the steps below:
- Visit the WEMA bank branch nearest to you or fill this form
- If you’d prefer to access your loan instantly online, download the ALAT online app for your iPhone or Android device.
- Login to it and from the menu items click on loans
- Read through and understand the ALAT disclaimer
- Credit evaluation and checks will be conducted and a loan offer will be presented with applicable interest.
- Accept the terms and conditions after you have read through them
- Your account will be credited immediately!
In conclusion, if you’re trying to scale your business and you’re lacking in funding, then you might want to consider taking a loan from WEMA Bank.
If you’ve read this far, and you have additional feedback or comments on what should be included/removed, let us know in the comment section below!