Getting credit facility (cash) from banks to start or run an existing business in Nigeria is one big challenge many entrepreneurs faces, to give out loans many banks in the country will ask for collateral that no average small scale business person can provide.
Apart from banks, there is another easy way to obtain credit facilities without you even remembering if any of the banks in Nigeria ever existed.
Please NOTE that a credit facility not all about money received in cash only but also money received in kind.
Money received in KIND involves buying things now and then pay later.
How To Obtain Credit Facility for Business without Collateral
The Rich gets richer using “other people’s money, time and Ideas”
It is the cheapest form of credit facility you can ever get that does because it not requires you pay cash instantly and also you don’t need to provide any asset as collateral.
Many big manufacturers and service providers in Nigeria are enjoying this type of credit facilities, what they do is get well established suppliers and vendors to supply them raw materials and things needed for smooth business operation and make payment on a later date.
So, as a small scale business person, you can employ the same strategy that big companies are using to more profit and remain business. All you need to do if you as a small scale producer or service provider is, look for raw materials and equipment suppliers who will supply all your need to remain in operation on credit and you pay on a later date as agreed.
How To Obtain Credit Facility for Business without Collateral
The Rich gets richer using “other people’s money, time and Ideas”
Indeed obtaining credit facilities from suppliers to run your business is very easy. Producers and Suppliers are ever willing to give out goods on credit to customs. All you need is being TRUST WORTHY, PATRONIZE THEM CONSISTENTLY AND STEP UP YOUR SALES.
Credit facility has helped me a lot, at one point when I was into paper conversion business. Then I started the paper conversion business with just N3000 only as capital and as I run the business it became difficult for me to buy raw materials needed for daily production because didn’t have enough money at hand.
What I did then was to look for a well established paper merchant in Mushin Lagos where I go to buy paper “come rain, come shine”. And after a while I decided to ask him to give me a ream of paper and will pay back on a fixed date and he granted it.
But I knew the little amount granted as credit, was a test to see if I will run away with money or not. And as at when due I paid him back his money and after that started buying paper from him and will pay him later on our agreed date.
Also, NOTE I never took undue advantage of his good will because I knew it will tarnish my reputation, I tried by all means to remain TRUST. And any time I knew I wouldn’t be able to meet up with full payment of the amount granted me as credit, I will phone him two days earlier to let him know about it and this alone helped me to maintain TRUST.
There is one United Nation jingo; I use to hear on TV in the late 90’s that says “If we all can TRUST each other then, there will be peace on earth”
Even if you don’t cash, but trust worthy, because TRUST is a social currency that be spent anywhere in the world. So look for suppliers and companies in your area and do business with them and overtime, I’m sure they will grant you some credit facilities without collateral and with it you can run a successful business with easy.
