Do you have a challenge, because you don’t have money to run your business well? The access bank, a business loan is here to support you to move your business to the next level. Here is the information you have been searching for. In this article, we will be focusing on everything that you need to know about the access bank loan if you want to apply for the loan. But before we proceed, let us consider the meaning of a loan for a better understanding.
What is Bank Loan?
A Bank loan is an amount of money that a bank or financial institution loans to a person known as the borrower, which is always given on a collateral security, for a specific period of time.
About Access Bank
Access Bank is one of the recognized financial institutions in Nigeria, that was founded in 1989 in Lagos. It has been in operation for over 30 years now since its commencement. In terms of assets and loans and deposits, access bank is one of the four biggest banks in Nigeria. It has about 600 branches, located in over 12 different countries.
Everything to Know About Access Bank Loan
Let me begin here by telling you about:
what is a bank loan?
A brief on access bank
Types of access bank loan
The requirements for the loan
Application procedures
Types of loans available in Access Bank
If you want to obtain an access bank loan, here is a list of the different types of business loans you can access. They are as follows:
Term and Time Loans
In Access Bank you can access both long and short-term loans
Fleet Financing
This is a loan that is given to you by Access Bank to help you acquire a car for yourself in a fast and convenient way.
Plant & Machinery Financing
Access Bank will give you a loan that will help your business be more productive, it could be a long or short-term loan, for your business upgrade.
Contract Financing
When you are offered a large contract either by the government, multinational organizations, or big corporations, and you don’t have sufficient funds to finance it, access bank can assist you with some money to fund it.
Overdraft
Access Bank also gives an overdraft facility to its customers to cover any working deficits. The duration for this type of loan is just 12 months period.
DAUE
DAUE, stand for Drwing Against Uncleared Draft. In this type of loan, a negotiable instrument such as a draft is granted to customers
Working Capital Finance
This loan is given to assist some of those businesses that are in need of funds for the daily operation of their business, it is usually short-term.
Bonds and Guarantees
Here access banks provide what they call bond and bank guarantee services to borrowers.
Project Finance
When you have a big project, the bank will advise you or arrange tailored debt financing for you.
Structured Finance
Where corporate financing is not possible, the bank can help you with structured financing
Trade Finance
The bank offers this loan to businesses that are trading internationally, it could be through a bill of collection or letter of credit and others.
Supply Chain Finance
In this loan, the bank will offer you what is called supply chain finance through invoice discounting, forfeiting, and factoring processes.
LATO Mart Loan
This loan is given to those running supermarkets. LATO stands for lending against turnover.
Installment & Revolving Credit
Companies collect this kind of loan to purchase assets such as vehicles and other assets that will help to move the company forward
Loyalty Lending
This is a loan that is offered to long-standing customers who have good credit records. The loan is offered without collaterals, and borrowers can collect up to 5 million.
Health Loan / Mediloan Quality Care
This is a loan for those in medical health care, such as doctors, clinics, pharmacists, medical laboratories, etc.
CBN Healthcare Sector Loan
This loan is backed by the central bank of Nigeria, and it is provided for local pharmaceutical companies, and others in the healthcare chain.
Education Loan
This is a loan that is given to creche, nursery, primary, and secondary schools. With this loan, schools can access up to 10 million and are without collaterals.
Technology Loan
This is a loan that is given to those that are in the ICT, to help them purchase tools and equipment.
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Requirements for Access Bank Loan
For you to qualify for an access bank loan, your business will need to show evidence of:
- Being in good standing,
- Being profitable
- And being able to generate a regular monthly income.
NOTE: If you are looking for a loan without collateral, you will be required to have a good credit history.
Now let us look at certain requirements that you need to meet, as a qualification for the access bank loan. The requirements are as follows:
- Your business or company must have been registered with the Corporate Affairs Commission (CAC)
- Having a business or corporate bank account
- 1-3 years minimum trading period
- A good Credit Bureau Report with no unpaid obligations or bad debt is required from you
- Must be an access bank active customer.
Access Bank Loan Application Requirements
Before you apply for the access bank loan, you have to first find out the type of loan that is suitable for your kind of business. You also have to know that there are some loans that you need to call an access bank by dialing a certain code and there are some that require that you get to the access bank branch before you can apply for it.
In the course of the loan application, here is a list of things that you need to provide:
- Completed application form
- Company profile
- Business plan
- Cash flow budget
- Bank statements (12 months)
- Audited financial accounts
- Certificate of Incorporation
- Valid means of identification
- Proof of address
- Details of collateral offered
Conclusion
If you are having issues with your business because you don’t have money enough to run the business, you can seek a loan from an access bank and boost your business. The access bank loan is vast and it covers a wide range for all kinds of businesses.