What is small business loan?

Small Business Corporative is granting loan of up to N500,000 to small business in order for it to buy inventory or improve their current state of operation.


What is a loan?
A loan in terms of small business finance is a sum of money advanced to a business that must be repaid, with interest at some point in the future. The lender must bear the risk that the borrower may not repay the loan. The interest rate charged is the price for that risk. A loan is money, classified as debt, for temporary use.


Where to apply for loan
A business has to apply for a loan through some lending organization. A lending organization might be a commercial bank, credit union, micro bank, or other lending organization like a thrift institution or an alternative source of loans for businesses. Loans may also be guaranteed by the Small Business corporative which usually makes them easier to obtain.


Different Loan Application
The loan application is different from every lending organization but it has common elements. The lending organization usually wants to know the background of the owner or owners of the business and the financial condition of the owner or owners, and the business, before giving the business/owners a loan.


Reason for giving loan
A loan is made to a small business for many reasons. The loan may be for working capital and purchases of equipment or buildings and land. Interest rates on a loan depend on a variety of factors as do the terms of a business loan. Businesses have to be creditworthy in order to be granted a loan.


For more information on how to find small business loan visit the website below


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Victoria Joshua
08120210021