One of the major problems young aspiring entrepreneurs complain about is lack of access to finance for their many business ideas. Many people have also communicated this issue to us, asking us to write more on the available sources of finance for businesses.
Therefore we are launching this category which would be dedicated to the available sources of capital for businesses, particularly for young entrepreneurs.
The first opportunity for this week is Bank of Industry.
Bank of Industry (BOI) is Nigeria’s oldest, largest and most successful development financing institution. It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank took off in 1964 with an authorized share capital of 2 million (GBP).
The bank prides itself on providing access to funds for startups, SMEs, and large enterprises in three easy steps.
However, not everyone is eligible to access these funds. Below are the lists of people who can;
1.Small, medium and large enterprises, excluding cottage industries.
2.New or existing companies, seeking expansion, mordenization or diversification.
3.Credit worthy promoters who will be required to prove their commitment to the project by contributing at least 25% of the project cost excluding land.
4.Borrowers whose management capability, financial situation (including availability of collateral and guarantee), character and reputation are incontrovertible.
5.Clients with demonstrable ability to meet loan repayments.
6.Borrowers with no record of unpaid loans to erstwhile development finance institutions and other banks.
Considering the above listing, if you think you are eligible for the loan then you can apply in these three simple steps;
1.Write a formal letter of your intentions. Preferably, this letter should be in your company’s letterhead paper. It is a formal letter so attention should be placed on brevity.
2.Completion of BOI’s Questionnaire. These questionnaires are available for different categories of business. You would need to download the form for your category and fill it. To download the form, go here
3.Submit the questionnaire and the application form at the closest Bank of Industry office. To find where the nearest BOI office is located, click here
So, this is the long and short of accessing the Bank of Industry loan. To find out more about this loan you can contact us, or go to the Bank of Industry website at www.boinigeria.com We wish you the very best.