The idea of taking a loan is alluring for many business owners. They’re fast to approach loan lenders and financial institutions but lack the viable criteria and knowledge about business loans and how it works in Nigeria.

Due to the volatility in economic landscapes, loan lenders take utmost rigid standards. Sometimes, business owners plunge themselves in an avoidable financial deficit due to lack of understanding on loan agreement.  

Equipping yourself with the necessary knowledge on loans allows you to make valuable choices and decisions for your business finances.

Here are key tips to note before deciding on securing a business loan:

• Boost Your Credit Score: Your credit score is a determining factor loan lenders use to evaluate your credit history. A low score depicts your inability to secure loans while a high score allows you access to high-paying loans with negotiable interest rates.

• Business Plan: Loan lenders need an overview of the strategies, and plan you’ll employ to utilize the loan. It gives them a risk assessment standpoint to know if your endeavors would yield profit to make prompt payment.

• Financial Statements: Loan lenders will request for your bank statements, balance sheets, income statements and cash flow statements. This information provides them with a measure to know the state of your financial health before issuing your business loans.

• Interest Rates: Different lenders attach different interest rates to their loans. It’s essential you make diligent research across different lenders to choose the interest rates that best suit your business needs. It’s advised to understand the loan agreement and the penalty for making late repayments. 

• Repayment Plan: Have a feasible plan of how you tend to repay your loan. Ensure you can seamlessly make repayments without plunging on your business savings or putting your property at risk in the case of collateral loans.

Business owners shoulder the financial responsibility of making adequate research before taking any loan. By understanding these critical factors, you can make informed decisions to buttress your decision to take a loan. 

If you have any questions concerning loans, kindly reach out to your account manager. You can also contact support at help@getprospa.com or give us a call on 018890240.

We look forward to hearing from you.

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