Collateral-free loans help small business owners and entrepreneurs secure their assets better while seeking funding to help with their business financing and growth.
As a small business owner, your main goal is to grow your business. This can only be done by meeting your customers’ needs, ensuring that staff are always paid when due, and maintaining a steady positive business cash flow management system.
There are so many different ways to raise money for your small business, and getting a loan is one of them.
The thought of collateral often comes as a threat to young business owners, seeing that the likelihood of you losing your asset to your lender is pretty high. Thus, the need to leverage collateral-free loans when it comes to small business funding and capital financing.
Also Read: How to Add Your Business to Google Maps
5 Platforms to Get Collateral-Free Loans for Small Businesses in Nigeria
The online platforms to get collateral-free loans in Nigeria include:
- Carbon SME Loans
- EZ cash for SMEs
- QuickCredit for small businesses
Not just Nigeria, GroFin financial services expand further in Africa, as well as the Middle East.
GroFin is more focused on providing financial services to small businesses that fall under the category of agri-processing, manufacturing, education, healthcare, or key services such as energy, waste, water, and recycling.
You can get up to $1.5 million in collateral-free loans from GroFin to fund your small business growth.
This is one of the go-to places by small business owners and entrepreneurs for capital financing.
Lidya offers both small and medium-sized businesses collateral-free loans between $500 (~N167,000) and $15,000 (N8million).
The platform’s technology and algorithm are one of the best when it comes to tracking and assessing the risk involved in granting every unsecured loan offer.
This, in turn, makes it possible for them to offer the most financial products to customers that deserve it and at a much cheaper cost.
Zedvance offers up to five (5) million naira in collateral-free loans to small business owners and entrepreneurs within the country that needs it.
Specifically, their loans are more directed to salary earners but still works well for entrepreneurs who are on a salary with a side business.
4. Carbon SME Loans
Carbon is undeniably one of the best online platforms that offer collateral-free loans in Nigeria to small businesses.
Its loan offers are strategically positioned to help small business growth.
You can get up to N1,000,000 (million) in small business financing, without even having to risk any of your personal assets or property.
You can always download the app to have access to all the funds you need for your small business financing and when you need them.
SMEDAN is short for Small and Medium Enterprises Development Agency. It is a government-backed financing initiative for small businesses and entrepreneurs within the country.
The core mission of SMEDAN is to encourage entrepreneurship among Nigerians and provide all the capital financing they need to start their business.
The program also offers hands-on expertise training and support to young entrepreneurs that need it.
Kiakia offers small business owners and entrepreneurs up to N200,000 in collateral-free loans to be able to keep up with their daily business expenses.
Being an online platform, you are guaranteed of getting all the funds you need quickly, and at your own convenience.
The platform works both ways. You can choose to whether get a loan or fund an applicant’s loan request.
7. Aella Credit
Aella Credit has made it possible for young entrepreneurs to get all the funds they need to start up a business, all at no cost (collateral).
Their collateral-free loans are more focused on employee lending and empowerment.
The way the platform works is that your ability to access funding as an employee is rated based on your current credit score.
The platform’s algorithm also considers social and demographic factors, as well as debt to income ratio when approving your funding request.
FastCredit offers collateral-free loans in Nigeria to micro, small, and medium-sized enterprises to support their business growth.
Their loan offers are backed by guarantors and come with a maximum length of six (6) months for only small business owners that meet their minimum requirements.
The main mission of C24 limited is to create an avenue for young entrepreneurs to actualize opportunities around them. This, they achieve by giving you access to collateral-free cash loans whenever you need them.
10. EZ Cash for SMEs
Stanbic IBTC Bank offers small business owners and entrepreneurs financing through their EZ cash for SMEs program.
Customers are allowed the option of choosing a repayment plan between one to twelve months from the time they received their loan payment.
Specta collateral-free loans work for both individuals and small businesses.
As an individual, you can get a personal loan of up to five (5) million naira within five (5) minutes without any collateral; and as a small business owner, you can get as much as N2million in business financing.
Specta4Business loan services are always available for you to leverage when looking for the best financing for your business that requires no collateral and paperwork.
12. Quick Credit for Small Businesses
If you own a bank account with GTBank, and your business is education-based, deals with trade or service sectors, then you probably need to consider financing using the QuickCredit for Small Business option.
This funding option is solely aimed at financing your small business working capital, thus, helping to position it for growth.
QuickCheck’s mobile technology gives you access to all the funds you need to finance your small business growth, at the comfort of your home. This can be done easily by downloading their mobile app.
With QuickCheck, you can get up to N30,000 to finance your business’s operation for the month.