First Bank Small Business Loans: How to Apply

First Bank small business loans offer as much as N40million to entrepreneurs to help with their business financing.

From on-site lenders to online lenders, to even banks, there are a lot of options available for you to choose from when it comes to sourcing finance for your business.

Virtually, not all business loan offers are created equal, but with First Bank small business loans, all entrepreneurs are treated equally and fairly.

First Bank as a Lender

For some years now, small business owners have been trying to reach out to First Bank Nigeria (FBN) with their various business plans, challenges, and visions, to see how they can assist them with some kind of funding to help with their business goals.

Now, First Bank has conceded to their requests. Thus, if you need a small business loan today, all you need to do is visit any First Bank branch around your area and ask.

There are a lot of options for you to choose from; from personal loans to mortgage loans, all tagged with highly competitive rates and favorable loan terms.

First Bank Nigeria offers so much more than financing to small businesses. They invest their time to ensure that you make the best decisions to positively affect your business growth.

They always want to know more about your business to ascertain the right financial approach for you.

First Bank will always ensure that whatever loan offer you qualify for is one that will be able to meet your needs, from equipment financing to business expansion.

Types of First Bank Small Business Loans

First Bank has been one of the top tier-1 banks since the beginning of banking in Nigeria. Along with this comes a full range of corporate and retail financial services, including small business financing.

Thus, the various types of First Bank small business loans include:

  1. Revenue loans and overdrafts
  2. Import financing
  3. Secured term loans
  4. Oil and gas contract financing
  5. Health financing
  6. Bonds and guarantees
  7. Invoice discount financing
  8. Operational vehicle financing
  9. Agricultural financing

#1: Revenue Loans and Overdrafts

First Bank’s overdraft facility gives you access to funds over and above what is actually in your account. Your borrowing limits and length of the loan offer are all defined beforehand.

An overdraft from First Bank comes as a good backup source of financing for any kind of business in general, especially as it relates to dealing with unexpected expenses.

#2: Import Financing

If your business is into the importation of raw materials or finished goods, then you might just qualify for one of the many available First Bank small business loans.

First Bank’s import financing is made obtainable through many different finance products, including bills for collection and line of credit.

#3: Secured Term Loans

This grants you access to as much as N40million in small business financing to help fund your company’s working capital.

But still, as a secured term loan, you’ll be required to provide some form of a valuable asset to use as collateral (real estate, business inventory, and lots more) for getting to loan.

Loan settlements here are made over a period of three (3) years.

#4: Oil and Gas Contract Finance

This credit facility allows Nigerian Oil and Gas companies access to as much-needed funds as possible. Cash is released to carry out specific contracts.

The cost of execution of up to 70% can be borrowed.

#5: Health Financing

This facility applies to only registered pharmacies and private hospitals in the country.

There are the only ones able to benefit from this health finance product. In this facility, First bank provides loans to purchase drugs and other medical supplies.

#6: Bonds and Guarantees

The main beneficiaries of this system are contractors to big companies and businesses that generally require some form of bank guarantee before contracts are granted.

The tenure of a First Bank bond or guarantee does not go past twelve (12) months.

#7: Invoice Discount Financing

With invoice discounting, funds are being passed on to businesses based on unpaid invoices. This system is great for managing your business’s working capital.

But note that First Bank only gives out invoice discount financing to reputable companies and organizations.

#8: Operational Vehicle Financing

You can purchase a new vehicle for day-to-day business use by employing the operational vehicle finance product. This loan facility cannot be used for commercial transportation. N10 million is the maximum loan amount with a loan repayment tenure of up to 3 years.

#9: Agricultural Financing

First Bank small business loans offer to fund businesses that are generally involved in agricultural activities and processes.

Three products from this facility are backed by the Central Bank of Nigeria – the Commercial Agriculture Credit Scheme (CACS), Micro SME Development Fund, and the Real Sector Support Facility.

The other forms of financing offered to agribusinesses come in the form of conventional term loans and overdrafts.

First Bank Small Business Loan Qualification Requirements

Being such a large financial service institution with a good reputation over the years, First Bank has so many loan products and finance options for small businesses.

To this end, the lending criteria greatly depend on the specific credit facility you are currently opting for.

But still, it’s good to know that some loan products are only reserved for businesses in certain economic sectors.

A major example here is health loans. These kinds of First Bank small business loans are only available to medical-related businesses.

As with the normal requirements for all loan applications, showing the power to pay back a loan offer should be done by providing evidence of your regular monthly income, as well as a good credit score or rating.

The other standard lending measures for getting First Bank small business loans include:

  • Being in business or trading for about 1–3 years minimum.
  • Being an active customer of the bank.
  • Have a registered business or company with the Corporate Affairs Commission (CAC).
  • Must have a good Credit Bureau Report with no bad debt or unpaid obligations.
  • Must have a business or corporate bank account.

Please note that First Bank small business loans are set aside for only registered businesses. Those with unregistered businesses can look into personal loans that the bank has to offer.

How to Apply for a First Bank Business Loan

Not all branches of First Bank accept loan applications.

Thus, you can only apply on-site at specific bank branches, or just download the application form online, complete it, and head over to a First Bank branch close to you.

The bank will then assess your business suitability for financing before approving your funds.

First Bank also considers the purpose of your loan before reaching a lending decision with you and your company.

On approval of your funding request, you will get an approval letter that usually comes with set terms and conditions that relate to the loan offer.

The list of important documents frequently needed when applying for a First Bank small business loan includes:

  • Business Plan.
  • Bank Statements for at least 12 months.
  • Certificate of Incorporation
  • Completed application form
  • Company profile
  • Cash flow budget
  • Valid means of Identification (driving license, passport, voter’s card)
  • Proof of address
  • Details of collateral offered if there is any
  • Audited financial accounts

Please note that each specific document you need to show is unique to the corresponding credit facility.

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