Small business owners in Nigeria are turning to a new medium to acquire the funds they need: business credit cards. They can now obtain their own line of credit without having to pledge collateral and that too at a very low interest rate. The credit offered is usually enough to help entrepreneurs start or expand their business.
The benefits of this option are many. First, one need not commit any collateral. Second, there is no need for a co-signing by the borrower or his relatives. Third, there is no need to undergo a credit check. This makes the process transparent and convenient. One can even borrow up to 30% of the equity value of the business to invest.
Getting a loan for investing in a business can be a bit complicated, especially when there are so many factors to consider. However, when you choose a small business credit card, things become far less complex. For starters, it is an unsecured form of loan. This means that there is no risk for the issuer. If you default on your repayments, he has nothing to use as a charge off against your name.
In fact, this is one of the only ways through which small businesses in Nigeria can get a business credit line. No other form of financing is tied-up with the property of the business holder. This makes it convenient for the business to expand without much hindrance. It also allows entrepreneurs to start their business without being hindered by heavy capital requirements.
It is relatively easy to apply for a business credit card. Once you have obtained a business license, you can sign the agreement online. This is quick and simple, especially compared to the traditional method of applying for loans and payments. The charges are generally low and there are several plans to choose from to suit your small business needs.
There are many benefits to this card. For one, you do not have to give your business name as a deposit for the card. Thus, every time you make a purchase, you can deduct it from the balance. This makes it very convenient for business owners to manage their finances.
You will also enjoy an assortment of rewards and features depending on the card that you choose. Some cards include air miles, bonus points, online discounts and a host of others. With all these, you can experience more financial freedom. As an added benefit, you will not have to worry about applying for and repaying the card at every business transaction. The money is automatically . . . . . . deducted from your account on the basis of your bill paying record at the end of the month.
Obtaining a business credit card in Nigeria is easier than ever before. Business owners can select the right card for their small business by conducting online research. There are many sites that offer detailed information on the various cards and their terms and conditions. By doing some comparison-shopping, you will be able to find the best card to meet your business needs.