FCMB Business Loan: How to Apply

Now you can get as much as N10 million in small business financing with an FCMB business loan.

FCMB (First City Monument Bank) has more than 3.7 million customers and over 204 branches across the country. The bank also has a fully-owned subsidiary located in the United Kingdom – FCMB UK.

FCMB also offers financing services to small businesses and young entrepreneurs.

FCMB Business Loans Available to Entrepreneurs

Getting an FCMB business loan can be done via any of the following:

  1. Quick loans
  2. SME development financing
  3. SME working capital financing
  4. SME Invoice Discounting Finance (IDF)
  5. SME Local Purchase Order (LPO) financing
  6. SME asset financing
  7. Project and structured financing
  8. SheVentures
  9. Trade services
  10. Bonds and guarantees
  11. Food business loan
  12. Intervention funds

#1: Quick Loans

This is one of the few FCMB business loan facilities that allow business owners and entrepreneurs access to short-term credit of as much as N10million.

The best part? This kind of funding comes in a form of an unsecured loan.

Thus, you will not be required to provide collateral for this kind of FCMB business loan.

FCMB’s quick loan time of settlement ranges from six (6) to twelve (12) weeks.

#2: SME Development Financing

This is an FCMB business loan that is designed specifically to assist businesses in acquiring commercial property such as offices or real estate.

You are allowed to borrow money for as long as three (3) years with highly competitive interest rates.

#3: SME Working Capital Financing

An FCMB working capital financing is a well-structured business loan that’s focused on financing a company’s cost of operation. This comes either as a short-term loan or overdraft.

Basically, an FCMB working capital loan is best for any business that is looking for funds to take care of any short-term expenses.

As a term loan, you are allowed to borrow money for up to three (3) years, while as an overdraft, you are allowed access to cash for up to 180 days from the time of disbursement of the cash.

#4: SME Invoice Discounting Finance (IDF)

Invoice financing is one of the most flexible credit facilities for small businesses.

It allows you access to locked-up funds in your business’s unpaid invoices. But still, this only applies to invoices that were issued to well-recognized organizations.

A maximum of financing of 180 days applies to this kind of FCMB business loan.

#5: SME Local Purchase Order (LPO) Financing

This is FCMB short-term financing that provides your business with all the funds it needs to settle suppliers.

Applying for this kind of FCMB business loan is based on only confirmed business purchased orders.

FCMB LPO financing grants you access to funding for up to six (6) months, after which you’d be required to pay back the funds in full.

#6: SME Asset Financing

Similar to SME development financing, FCMB’s asset financing comes in really handy when it comes to financing the purchase of business assets, but rather business assets such as equipment or machinery.

Financing extends over for a period of four (4) years.

#7: Project and Structured Financing

This kind of financing works best for big organizations, specifically those with unique funding requirements.

Business loans gotten here are often syndicated.

#8: SheVentures

As a way to support women entrepreneurs in the country, FCMB established the SheVentures initiative.

The FCMB SheVentures program grants businesswomen access to long-term financing with interest rates as low as 15%. Further, a SheVenture FCMB business loan can be advanced at 0% interest.

#9: Trade Services

If your business operates international trading activities, then FCMB has a lot to offer you in terms of trade financing.

You can take up funding to assist with your export financing, get a letter of credit, as well as collect on documentaries.

#10: Bonds and Guarantees

Now, even with bad credit and a low-income flow, FCMB makes it possible for you to get financing via bonds and a bank guarantee.

#11: Food Business Loan

If your business is involved in any of the following food sectors such as restaurants, cafes, and eateries, then you can get an unsecured FCMB business loan or asset financing to help your business scale.

You can get as much as N5million in funding at an interest rate as low as 15%.

#12: Intervention Funds

FCMB in partnership with other government-related institutions such as the Central Bank of Nigeria (CBN) and the Bank of Industry (BOI) offers different intervention funds for businesses.

There are a lot of benefits to getting from this kind of financing such as a longer loan length and single-digit interest rates.

How to Get an FCMB Business Loan

The major requirements for getting an FCMB business loan include the following:

  • Have a business that is already registered with CAC (Corporate Affairs Commission)
  • Have an active FCMB business or corporate bank account
  • Your business must have been operating for at least a minimum of one (1) year
  • A good credit rating with no unpaid obligations or bad debt

You can apply for an FCMB business loan either online, or at the bank directly.

This can be done online either through the FCMB mobile app or via internet banking.

Thus, you’ll be requested to provide the following documents when applying for an FCMB business loan:

  • Completed application form
  • Company profile
  • Business plan
  • Cash flow projection or budget
  • Bank statements for the last twelve (12) months
  • Audited personal and business financial accounts
  • Certificate of Incorporation
  • Valid means of identification (driving license, passport, voters card)
  • Proof of address
  • Details of collateral offered (if applicable)

When it comes to getting a secured loan from FCMB, the following tend to count as collateral:

  • Obligations of the Federal Government of Nigeria (FGN Treasury Bills, FGN Bonds, FGN Eurobonds, etc.)
  • Obligations of agencies of the Federal Government of Nigeria or state governments
  • Other non-government debt instruments
  • Physical assets e.g. real estate, business inventory, equipment, etc
  • Third-party guarantors

On approval of your FCMB business loan request, you will be issued an approval letter that details the terms and conditions of the loan offer.

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