Business Loans In Nigeria

If you are interested in starting your own business, it is most likely that you will have to borrow money. But not everyone has a rich uncle, who can loan them money with a low or entirely non-existent interest rate. Therefore, you need to know what other options for loans are available now in Nigeria. Below, you can find information on where you can get a loan for your business in Nigeria, as well as some tips to guarantee you getting it.

Business loans 

So what exactly is a business loan and how is it different from the other types of loans? Well, as with any other loan, you receive money from a financial institution that you need to repay in a set amount of time with interest. The main difference is that, in addition to your previous credit history, money lenders consider your business idea and make a decision based on its expected profitability. If they don’t think your idea is good enough, the chance of getting a business loan diminishes considerably. There are many ways in Nigeria to get a business loan. But before you actually jump into it, take a minute to consider this: do you really need a loan? Have you considered all the other options? If the answer is ‘yes’, then, by all means, proceed.

Money lenders in Nigeria  

Nigeria has set a course for aiding small and medium-sized enterprises (SME) in their endeavors, which includes making it easier for entrepreneurs to get loans. There are plenty of banks, funds and online lenders that will give you the needed money. Below, we have listed the best options available for getting a business loan.

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Heathrow Airport Launches SME Grant Program

London Heathrow Airport has partnered with the UK’s Department for International Trade (DIT) to launch its World of Opportunity program, which will award £2,000 (US$2,555) to 20 British SMEs to fund vital trade missions and research.

As part of the partnership, DIT will provide mentoring guidance from an international trade advisor to help their research and missions and promote the competition. Successful applicants will also receive a Plaza Premium lounge pass to begin their trip in style.

A panel of business experts including Lord Deighton, chairman of Heathrow Airport; DIT’s Keith Moses, international trade advisor, DIT; and Maisha Frost, small business correspondent, Daily Express, will select the 20 grant recipients among the list of applicants.

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Six ways SMEs can avoid mistakes when recruiting

With a staggering 5.5m businesses in the UK and 99 per cent of these being classed as SMEs (employing 0-249 people), it is vital these companies avoid mistakes when recruiting.

The overall cost of employing the wrong person and finding a replacement is worryingly high, with a 2014 Oxford Economics Report highlighting the loss of an employee on £25,000 a year carries an average financial impact of £30,614. This is costly for a growing business, so it helps to know how to avoid mistakes when recruiting.

There are several factors to take into consideration before you make that final decision. It is vital for SMEs to recruit for the talent that a candidate brings and also for their ability to support future growth of the company. Both of these can be achieved by avoiding common mistakes when recruiting, and instead following these six tips.

1) Look for a balance between autonomy and following processes

Working for a growing SME often involves a need for autonomy as it is essential that a candidate can cope with the level of independence required. Likewise, they will need to be able to adapt and follow the processes already in place in order for the business to achieve steady growth.

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SME Banking Conference In Tbilisi

The SME Banking Club hosted a two day Caucasus SME Banking Club Conference on May 24-25 in Tbilisi, aiming to promote innovative non-financial services provided by banks, including providing businesses with practical guidance on how to grow sustainably and expand access to finance. 

Through its program on Non-Financial Services for SMEs (small and medium-sized enterprises) in Eastern Europe and Central Asia, IFC, a member of the World Bank Group, supported the conference, while the Bank of Georgia was an exclusive financial sponsor of the event, bringing together more than 60 executives and officials from Eastern Europe, the South Caucasus, Central Asia, and the Middle East; among which were managers, SME business leaders, and banking executives from Georgia, Armenia, Belarus, Kazakhstan, Tajikistan, Ukraine, and Russia. 

Boris Dyakonov, CEO, Tochka Bank (Russia), Olena Prokopovych, from Non-financial Services lead in Europe, Middle East and North Africa, IFC, Manar Korayem, Women Banking Champions Program Lead, IFC, Zurab Masurashvili, Head of MSME Banking Department, Bank of Georgia, Eugen Metzger, Ukrgasbank Board member and Tamar Zhizhilashvili, Deputy Director of Marketing Communications & Business Banking, TBC Bank. 

Considering the diverse needs of SMEs prompting many banks to shift from simple lending to more comprehensive banking strategies, the conference focused on digital banking and innovations. It brought together key regional players to discuss innovations in digital, new lending and payment technologies for SMEs, as well as mobile solutions, e-banking, multi-channel strategies, and cooperation with fintechs and startups. 

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How SMEs Can Win At Customer Service

Since the dawn of business, there has been a little guy who has struggled against an enterprise with a bigger market share and a wider reach. In these situations, the bigger fish are usually able to win on several fronts, having the ability to offer a lower price or a wider product range. However, there has always been an area in which the smaller business can outshine its larger competitor: customer service.

Three in five people would be willing to try a new brand for better service, while around half of consumers would use a company more frequently after a positive customer experience. This is something SMEs can really excel at, and these two statistics show it can be used to both attract and retain customers. So, what can SMEs do to really use this to their advantage? Read on to find out more.

Understanding your customers’ needs

As most SMEs are operating with a smaller customer base, they can afford to be flexible to meet their customers’ needs. Larger businesses often make use of a one size fits all approach to their service so, if you can provide something that is more tailored, you can make your customers feel really valued as a result. You can still put a framework in place for your employees to deal with clients just be sure to make it loose enough to adapt to individual requirements.

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Make in India outreach has attracted many German SMEs

The Make in India Mittelstand (MIIM) launched to encourage German small and medium industry (SME) to India has evoked major interest in Germany, giving further boost to bilateral business ties, Prime Minister Narendra Modi said.

"Germany is contributing in a big way to the Make in India. The Strategic Market Entry Programme MII Mittelstand started in September 2015 to facilitate entry into the Indian market has been a major success," Modi said addressing the India-Germany business summit also attended by German Chancellor Angela Merkel.

Over 83 German companies have expressed interest in joining the programme, 73 have officially enrolled, while 47 companies' investments are in advanced states of implementation," he said.

Modi noted that the Indo-German Managers Training Programme had led to increased investments and creation of joint ventures by companies from both countries. "More than 500 Indian managers have benefited from this programme," he said.

Describing Germany as among India's "most important partners" globally, which is the 7th largest source of foreign direct investment (FDI) into India, the Prime Minister cited the examples of German majors in India.

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Will GST Make SMEs More Profitable

The arrival of Goods and Services Tax (GST), a single window taxation system, is supposed to help SMEs which are often burdened with taxes and its compliance. Whether the GST will be a boon to SMEs or not is still to be seen, but it is expected that all the states will pass this Constitution Amendment Bill in their respective Assemblies, helping in initiating a single window indirect taxation system. 

With over 51 million SMEs in India, it contributes 50% of the industrial output and constitutes India's 42% export earnings. Thus SME, the leading employment generating sector other than IT, holds the key in the post-GST era and understanding of its impact. 

Marginal reduction in tax payments 

For most SMEs, tax payment is a big issue when the organisation is yet to flourish. Before GST, business organizations having a turnover of more than Rs 5 lakh had to pay VAT registration fee. With GST, the lower ceiling for such businesses will be Rs 20 lakh (Rs 10 lakh for NE states), providing a huge relief to young entrepreneurs, allowing more categorical investment, leaving a room for reaping benefits in the near future. 

The CEO of Honcho Commercial Pvt Ltd, Tanay Ghosal says, "Exemptions up to Rs 20 lakhs, along with the registration required for individual or company having a turnover of Rs 20 lakh or above which was previously Rs 10 lakh will help the startups. All SMEs will benefit as they would not need to register if they have a turnover less than Rs 20 lakh." 

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International SME Business Network 2017

The United Nations General Assembly has designated June 27, to be observed as International Day for micro small and medium-sized enterprises (MSMEs).

The Entrepreneurs Foundation of Ghana (EFG) in collaboration with other stakeholders will organise an international MSME business network slated for June 27, to commemorate the Day on the theme: “Facilitating economic growth of SMEs through global partnership.”

International SME Business Network 2017 (ISMEBN 2017) is to acknowledge the importance of MSMEs in achieving the new global development goals. This business network will observe and raise public awareness of their contribution to the 2030 Agenda for Sustainable Development, which the Assembly adopted in September 2015.

A statement issued in Accra by Mr Sam Ato Gaisie, the Founder and CEO of EFG said the objective of the business network is to connect the Global SMEs with the Ghanaian SMEs for mutual business development and explore the emerging Ghanaian markets.

The business network will also focus on topics such as alignment with global practices, organisational and partnership building, improve access to finance and promote enhanced role of MSME in global value chain.

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Nations Trust Bank hosts workshops for SMEs

Nations Trust Bank recently hosted a series of workshops for the stakeholders of Small and Medium Scale Enterprises (SME) in Kiribathgoda, Negombo and Chilaw. The events were hosted at the Clarion Hotel - Kiribathgoda, Jetwing - Negombo and Anantaya Chilaw.

SME’s are the backbone of the economy in Sri Lanka and Nations Trust Bank is committed to their development and to providing such organizations with access to financial services that they require.

To this end, the keynote speaker at the events was Aminda Perera, Senior Lecturer at the Wayamba University, who delivered interesting presentations on how SMEs can best position themselves for growth and how they can differentiate themselves from competitors in their relevant sectors. He also elaborated on how SME’s can effectively compete with larger organizations and organize themselves for the greater benefit of SME’s as a whole, utilizing the latest technologies business practices.

Over 300 SME’s from the different regions participated in the events and gained insights on becoming better. The events also provided an opportunity for them to mingle with their competitors, colleagues and peers.

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Digitalization Support SMEs In Machine Tool Industry

Small and medium enterprises (SMEs) form the backbone of the Indian manufacturing industry. They contribute 38 percent to the nation’s GDP, 37 percent to its manufacturing output and 40 percent to its exports. Moreover, the segment is always buzzing with innovations. Companies are constantly transforming themselves and reinventing business models to stay one step ahead. 

As the demand for high-tech and efficient machines in the industry rises, digitalisation of the production process becomes the key to higher productivity, flexibility, and efficiency, as well as simple operability and the possibility of permanent optimisation. While traditional manufacturers use various tools for milling, turning, grinding, and other applications, digitalisation is radically and sustainably changing the production environment and becoming an indispensable part of business. Very soon, it will be the new normal.

India’s machine tools industry is expected to play a key role in accelerating this manufacturing growth as they are a strategic pillar of the manufacturing industry. Machine tools industry are pivotal to the augmentation of various discrete manufacturing segments such as automobiles, defence, railways, plastic machinery, electronics, white goods etc. It will have a huge role to play in the Government’s flagship programme Make in India. 

The Indian machine tool industry comprises of about 25 percent large players and the remaining 75 percent is dominated by small manufacturers and manufacturing companies. 

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SME ecosystem: impact on the global economy

In developed countries plus China and India, small and medium-sized enterprises (SMEs) generate about a half of the GDP and jobs. In other developing countries, their share in the economy averages 33%. In Russia, SMEs make up 20% of the GDP, employing just a quarter of the population. While China has more than half of its exports coming through SMEs, in Russia this figure does not exceed 7%. The Russian authorities are taking steps towards giving SMEs a more pronounced role, viewing it as a way to improve the structure of the economy, spur innovation, and promote higher employment.

Small and medium-sized businesses drive many economies worldwide.

According to the Organisation for Economic Co-operation and Development (OECD), SMEs provide jobs to between 60% and 70% of the employed population in developed countries and to 80% in China.

The SME contribution to the economy is around 50% in the US, 47% in the UK, 57% in Germany, 60% in China, and 45% in India.

In China, small and medium-sized businesses account for 65% of patents, 75% of innovations in technology, and more than 80% of new products.

According to the World Bank’s estimates, over the next 15 years, SMEs will be creating four out of five new jobs in developing countries.

A considerable share of products made by SMEs is exported.

The OECD estimates that share at 25% to 35% for developed countries, adding that for certain economies the number can be even higher: around 40% in South Korea, more than 40% in the US and Germany, and over 50% in China.

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PSX, GBCCI sign MoU to promote SME Board

The Pakistan Stock Exchange signed a memorandum of understanding (MoU) with the Gilgit-Baltistan Chamber of Commerce and Industry (GBCCI) recently for mutual cooperation and collaboration to facilitate access to equity financing for Small and Medium Enterprises (SMEs).  Imran Ali, president of GBCCI, and Asghar Abbas Naqvi, PSX regional in-charge of Islamabad, signed the MoU.

An awareness session was also held to promote the SME Board. Gilgit-Baltistan Governor Mir Ghazanfar Ali Khan was the chief guest on the occasion.

The awareness session was well-attended by women entrepreneurs, distinguished businessmen based in Gilgit-Baltistan, members of the GBCCI Executive Committee and representatives of Zahid Latif Khan Securities, it said.

GBCCI agreed to draft feasibility studies of viable businesses in Gilgit-Baltistan, which have good future prospects, in consultation with the business owners. The feasibility studies would later be shared with the investors across Pakistan who are interested in investing in local businesses.

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Dubai Internet City Hosts SME Builder Workshop

Tecom’s SME Builder brought some of the UAE’s leading business and tech experts together at Dubai Media City.

The event - the 20th since Tecom started them in 2007 allows small business owners to network with experts and consultants.

Ammar Al Malik, Executive Director with event organiser Dubai Internet City, said, “A key focus for Dubai Internet City is to support the region’s entrepreneurs, start-ups and SMEs by offering a solid platform and access to a pool of knowledge and expertise that can enable them to grow their business.

“Our philosophy is based on fostering a diverse ecosystem conducive to ideation and the exchange of knowledge and best practices.”

The UAE has maintained its leading position as the region’s tech start-up hub for the fourth consecutive year, and is home to one-third of all Middle East and North Africa (MENA) investors and 19 venture capitalists, the highest in the region, according to the State of Digital Investment in MENA 2013-2016 report released by Dubai SME.

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Busting the myths around SMEs and PR

Working on promoting an SME can be one of the most rewarding PR roles out there; catapulting a small business into the public eye and boosting their reputation so that they’re sharing column inches with bigger entities is an addictive buzz.

That said, as with any PR function, an important part of the role of an SME PR is managing expectations, to ensure that clients have realistic ideas of what can, and should, be achieved for the benefit of their business. Here we look at some of the most common misconceptions among small businesses when they take on a PR firm.

“I want to be on the front page”

Many small businesses want to appear in the national newspapers, without really knowing why. The misconception is that the bigger the publication, the more beneficial it’ll be to your business – but this is not always the case. A publication could have monthly visitor traffic of 1 million, but if few of them are interested in what your business has to say, what’s the point? Conversely, another publication could have just 10,000 readers, but, because that particular publication is read by your target audience, the chances are, they’re listening.

“I want to be on TV”

Many SME owners want to become famous, believing that fame alone with drive their business to success. In fact, a more tailored approach to PR, such as press coverage in appropriate outlets for your business, is more likely to achieve the positive results that you so desire. Although broadcast media can be a helpful tool to promote your product or service, it may not always be the most beneficial outlet for you. A good PR agency should identify the most useful outlets to your particular business, explain why, and approach them on your behalf.

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GST filings will help SMEs in securing credit

While small and medium businesses are expected to face teething trouble in complying with the Goods and Services Tax regime, the new tax system will also open an opportunity for them to access credit as GST filings are set to become a significant data source for flow-based lending.

Both banks and digital lending players say GST filings can be the best trove of information to lend to small businesses and will also reduce risks and cut costs while scoring these businesses for credit worthiness.

“GST will help make invoicing and data analytics around businesses more credible. In the long term, it will be beneficial for both SMEs and lenders,” said Rajeev Ahuja, head of strategy, retail and financial inclusion at RBL Bank.

“For banks like us, it will help reduce costs of doing business. Today, assessing small business involves feet on street and operational work. With GST, there will be a significant opportunity for many service providers to leverage that data. There will be more authentic information on small businesses, which can also help reduce risks in lending,” he added.

GST, which is set to roll out from July 1, is expected to see eight million taxpayers come under the new tax regime, with more than 2 billion invoices expected to be filed every month.

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How SME Accountants Brace For A Technological Overhaul

Small businesses may struggle to adopt new technologies, but that doesn’t mean they don’t want their accountants out of the loop, too.

A new report from SME cloud accounting company Xero, in conjunction with World Wide Worx, found that South African small business owners want their accountants to have the latest technologies and warned that several technologies are critical for SME accountants and accounting platforms to stay relevant and retain customers.

We are entering a period of rapid technological change within the accountancy profession, reflected Colin Timmis, Xero’s South Africa head of accounting, in a statement. From automation to artificial intelligence, accountants are having to upskill and evolve their offering.

“The report has shown that South African accountants are preparing for change, but they need to ensure they’re clued up on the next big tech innovations and affirm their status as the SME owner’s most trusted advisor,” he continued. “If they can do that, the future looks bright, as 42 percent of accountants peg South Africa as the country to watch for future innovations in the profession.”

It’s an interesting statistic, with Xero finding that South Africa surpasses the U.S. and U.K. as the leading market for innovations in the accounting industry.

Xero’s 2017 State of Accounts report below:

93 percent of SME accountants admit they could add more client value with the spare time they have every day. As cloud accounting and other technologies help to automate the accounting process, accountants are sure to have even more time on their hands they could use for hands-on, value-added services.

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Timber Expo Attracts More Exhibitors

A total of 280 exhibitors have taken up 494 exhibition booths at the 3rd Sarawak Timber & Small Medium Enterprises (SMEs) Expo being held at Borneo Convention Centre Kuching (BCCK) from May 18 to 21.

This represents an increase of 48 percent in the number of exhibitors as compared to 2015.

The biennial expo was jointly organised by the Sarawak Timber Industry Development Corporation (STIDC) and the Industrial and Entrepreneur Development Ministry in conjunction with the state-level SME Week 2017.

The event was declared open by Chief Minister Datuk Amar Abang Johari Tun Openg by beating drums made of bamboo. He was accompanied by Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan, who is also the Second Minister of Urban Development and Natural Resources and Minister of Industrial and Entrepreneur Development.

Among others who witnessed the opening ceremony were state dignitaries, government officials and VIP guests from timber-based industries. The expo this year involves 21 local furniture companies and 150 local SMEs engaged in food and beverages and craftworks. Furniture companies from foreign countries like Vietnam, Korea, China, India and Indonesia also took part in the exhibition.

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SIRIM launches Technology and Market Radar for SMEs

Scientific and Industrial Research Institute (SIRIM) has launched the Technology and Market Radar (TMR), a business tool to assist local SMEs to identify relevant technology and market trends to enable them to make strategic decisions on technology investment.

TMR is designed to be accessed by SMEs, Ministries and Government Agencies to retrieve relevant and strategic information on technology and business trends complemented with an analysis of opportunities and challenges.

The TMR was launched by President and Group Chief Executive of SIRIM, Dr Ahmad Fadzil Mohamad Hani with more than 100 participants attending the event, comprising local SMEs, industries and government officials related to the Malaysian SME activities.

Based on Technology Audits conducted on more than 300 SMEs in 2015 and 2016 by SIRIM under the SIRIM Fraunhofer Programme, the lack of data on market and technology trend was identified as one of the weaknesses affecting SMEs business growth.

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Sales Strategies For SMEs

Getting into business is easy, selling is difficult. Business is about generating revenues and cash flows. If you can sell, you cannot be in business.

In business, only the right story wins the sales deal. In today’s fast-paced business environment, the best financial results are obtained when a good marketing strategy meets an equally efficient sales strategy.

Marketing and sales teams must work together. The alignment of marketing strategies to sales efforts is key for organisational success.
Today we engage in a conversation to help small business grow their sales and marketing capability.

Have a clear marketing strategy

The primary role of marketing is to create a support structure on which the sales effort will be built. Without a marketing plan, it will be difficult to generate sales. Marketing strategy deals with how your business intends to generate sales leads.

Your marketing strategy must deal with issues of customer relationship management, and the marketing strategy must be simple, effective and easily implementable. Here are a few tools one can use as marketing tools.

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Tips For Small Businesses To File Tax Under GST

The Micro, Small and Medium Enterprises (SMEs) sector in India has been the primary growth driver in the country for decades. According to the SME Chamber of India, the sector contributes 45 percent of the industrial output, 40% of exports, employs 42 million Indians, and creates an average of one million jobs every year while producing more than 8000 quality products for the Indian and the international markets. It wouldn’t be wrong to say that the implementation of GST will be a big game changer for the sector. GST, in the long term, will bring about many long-lasting changes in the economy such as reduced prices and cost of operations. But the important question now is if the Indian SMEs are prepared for the transition to a new tax regime - a ‘behaviour change’ that will later pave  the way we do business as a country.

Expert estimates say that only about 50 percent of the sector is technologically capable of complying with GST rules. Manpower is also a huge concern for the sector, as many businesses do not have dedicated personnel to follow up with vendors and suppliers and ensure timely payments or invoicing. These are some of the teething troubles that the sector will have to face as the new tax regime comes into force. Knowing these problems in detail makes it easier to recommend solutions, and below you will find some expert tips that can help small businesses to get GST-ready before the tax universe in India changes its colours:

Tip 1: Calculate your ITC like your life depends on it

And truth be told, it actually does! It is very important for SMEs to understand the legislations around Input Tax Credit (ITC). The availability of ITC could determine the cost of compliance and the competitiveness of a business in the GST era. The law allows for ITC to be claimed on expenses incurred for ‘furthering of business’ such as marketing expenses, transport costs etc. SMEs can claim ITC across a bucket of expenses by being familiar with the law and thus reduce operation costs and increasing their margins. Besides ITC can impact your working capital, this makes it all the more relevant to make sure there is good compliance.

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