8 WAYS TO SOURCE FOR CAPITAL TO START A BUSINESS IN NIGERIA.


People have the best business ideas but the lack of sufficient capital can be the major setback when attempting to set up a business. In a country like Nigeria where unemployment is a major challenge, people especially the youths need to figure out ways to financial freedom even when they can’t secure a white collar job. There are certain opportunities people do not consider when sourcing for fund and which could be their way to liberation. They include:

BANK OF INDUSTRY: The Bank of Industry Limited (BOI) is one of Nigeria's major development financing institution. The bank of Industry has the mandate of providing financial assistance for the establishment of large, medium and small projects as well as expansion, diversification and modernization of existing enterprises; and rehabilitation of ailing ones. They give loans to enterprises with the ability to pay back. They have helped many establishments in the past.
BANK OF AGRICULTURE: BOA provides financial support for agricultural farmers who do not have enough capital for investment. It is a bank controlled by the federal government of Nigeria and they have given loans to many individuals who meet their demands.

FAMILY AND FRIENDS: borrowing money from friends and relatives is another way to source for capital for your business. This type of offer might not attract interest and might be convenient in terms of payment compare to other means of sourcing for capital

COMMERCIAL BANKS: many commercial banks offer loans for business owners and entrepreneurs. Most of these types of loans demand for collateral and guarantors and interest rate are also attracted but it is not impossible to source for capital from commercial banks.
NON GOVERNMENTAL AGENCIES: many non governmental agencies are majorly established to help people with grants and funds. These funds are majorly collated from philanthropist and agencies willing to support and help people. It is possible to solicit for funds to establish your business from non governmental agencies.

COOPERATIVE SOCIETIES: there are many cooperative societies that give their members access to loan. This method of sourcing for fund has helped many people start up their business in Nigeria.
PARTNERSHIP: this is another way to start up a business. Forming partnership with one or more people that can raise some amounts for capital is not such a bad thing to consider for business. The risk and the profit are bear together depending on the business agreement.

SMEDAN: this is another agency that helps people with business vision and ideas but who do not have enough capital to establish the business. it is a government set up and has helped many small and medium scale businesses in time past.
Sourcing for capital can be tedious and challenging but with proper planning and good vision, one of these methods can help you source for your capital successfully.