Top 3 Reasons Why Your Business Needs Funding
posted on Feb 28, 2023 | 845 likes
Access to funding should not be difficult with the right information.
When you think about expanding your business, the last thing you want to do is put yourself in debt. However, sometimes it is necessary.
In Nigeria, new businesses that are still in the startup stage often require funding to get off the ground. While most solo entrepreneurs will use their own savings to start the business, very few manage to self-fund the company to profitability through access to external loans.
There are a variety of options an entrepreneur can explore to get funding. They include bank loans, borrowing from family and friends, crowd-funding, and grants. In this post, we will look at the three most common reasons businesses frequently go to investors, banks or non-financial institutions for seed money.
Here are three common reasons for seeking business finance in Nigeria.
Working capital: Sufficient working capital is a key aspect of any company’s financial health. Not having enough working capital can have a serious impact on the future of your business. So to fulfil growth ambition, many businesses apply for external funding to create enough cash flow.
Asset purchase: Expanding your business and increasing sales often require you to purchase assets such as new machinery or vehicles. While you may have enough cash to cover working capital expenses for your business, you may look for a loan to cover the purchase of new assets to enable your business to expand.
Growth funding: If you’re looking to take your business to the next level, you may need funding to enable you to execute your business plans. Whether you want to increase sales, expand your range of products or services, move into new premises, hire more staff, or expand internationally, a good loan can help.
There is nothing wrong with taking loans for your business. However, don’t take a loan if you are not sure you need one. You must do your due diligence to make the right decision for your business at all times and keep your business afloat.
If you own a business and already know why you need a business loan, Click Here to check if you are eligible for a loan from us. We would be happy to partner with you on your financial needs.
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