Top Ways to Source for Funds to Start and Grow your Business in Nigeria Now! - Nigeria Boom

Top Ways to Source for Funds to Start and Grow your Business in Nigeria Now!

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One of the major challenges faced by Nigerians in starting up and/or managing a business is the inability to raise the required funds. This is usually a big problem that has hindered so many potential business owners.

In this article, I would reveal to you some very effective ways you can generate funds for your business in Nigeria.

If you are interested in getting access to the finance you need to achieve a lot in your business or simply make your business dream come true, this article should be of interest to you.

Below, I would be revealing to you some of the most effective ways to generate funds for your business in Nigeria.

how to source fund to start or grow your business in Nigeria

How to Source for Fund to Start and Grow your Business in Nigeria

How to source for funds for business in Nigeria

1.     1.     Loan:

Loan in this context refers to the sum of money that an individual or group or any legal entity borrows from another individual, group or legal entity usually a financial institution with the condition that it will be repaid at a later date.

There are many sources where you can get a loan to run your small business in Nigeria. However, you should know that a loan is not a gift but this money would be repaid according to the setup time for payment. What does this mean to you? This means that you must have decided to be disciplined and very diligence in running your business to avoid getting yourself into debt.

Interested in securing a loan in Nigeria, then check out the following articles; 

Nigerian Banks that will give you a loan without collateral

A Complete List of USSD Codes in Nigeria

2.  Grant:

Grants refer to the sum of money granted by local or foreign organizations and government to help individuals or group start up a business.

Grant is one of the best ways of generating capital for your business in Nigeria. The best thing about grants is that it is a non-repayable fund. This, therefore, makes grants less risky than loans.

Interested in securing a grant in Nigeria, then check out this article; 

Top 25 Available Business Grants in Nigeria

3.     Use your Assets:

You may not have the required capital or fund to start-up or finance your business, but you may have assets. Assets refer to anything you own that is of value to you.

You may have valuable assets such as a car, house, jewelry, land, phone, etc. You can consider selling off those assets that you can live without in order to generate funds. You can also use your assets securities to secure big bank loans. 

This step of generating funds can be a little tough on you especially when you have grown emotionally attached to those assets. You should however know that the journey of an entrepreneur involves a lot of risks and non-risk takers aren’t qualified to become entrepreneurs.

4.     Enter into Entrepreneurship Competition:

There are so many entrepreneurship competitions going on in Africa every year. This means that every year, so many people are able to secure funds to startup or expand their business. Unfortunately, only a few know about these competitions and therefore have not been able to enjoy the benefits that come with these competitions.

Entrepreneurship competition is a contest organized by an organization to promote small and medium enterprises (SMEs). Only those with the best business ideas will go home with the prize award which is usually money to fund their business.

There is also exciting news for those who were not able to receive a prize. They gain exposure. This means that angel investors may come knocking at their doors to promote their business ideas.

5.     Crowdfunding:

Crowdfunding can also be called crowd financing. This is one of the most interesting and fastest ways of generating capital or fund for your business. As the name implies, crowdfunding is the raising of funds by a crowd of people.

Crowdfunding involves a lot of people coming up with different business ideas. The best of those business ideas is chosen to be financed. The crowd gathers funds to fund the chosen business idea thus giving them the opportunity to have a percentage of ownership to the business.

Crowdfunding has existed for a long time but this idea of raising funds isn’t yet popular in Nigeria.

Check out the Top Crowdfunding Platforms to Fund your Business Ideas in Nigeria

6.     Contributions:

Contributions in this context refer to a voluntary gift or contribution that is given to someone or a group for business purposes. 

Most times, your source of funds is just a call away. You may have families and relatives who are doing well financially. All you need to do is to call them and ask them to fund your business.

7.     Partnership:

This is a smart way of generating enough funds to finance your business. You may have a brilliant idea, the strategy, the brains but not the money to finance your business idea. Why not meet someone that has the finance.

A partnership has its disadvantages and its advantages. In order to avoid so many disadvantages, it is better you partner with someone you trust very well. On the bright side, a partnership would not only provide you with the money you need to finance your business idea but will also provide more ideas other than the ones you know that may boost your business to a whole new stage. 

8.     Savings:

Savings is another smart way of providing funds for your business in Nigeria. This however involves discipline as it will cost you. Savings involves you using your personal savings to fund your business or using your business’ profit for reinvestment which subsequently encourages further expansion.

9.     Side Hustle:

You can choose to engage in a side hustle in order to gather funds. There are so many profitable side hustles in Nigeria that can help you make so much money that you may dream of.

We have compiled some of the most profitable side hustles for you in Nigeria. 

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