gemcoop-how and where to get loan without collateral

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HOW AND WHERE TO OBTAIN LOANS WITHOUT COLLATERAL

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Page 1: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

HOW AND WHERE

TO OBTAIN LOANS

WITHOUT COLLATERAL

Page 2: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Staring a new business could be a stressful venture, especially when you have to come up with the start-up funding that is necessary to ensure the success of your dream business.

        There are many options available to an aspiring new business owner, but it is important that you find a choice that will be beneficial to you and your company. It pays to do your research and ask around.

Introduction:

Page 3: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

        Anytime you want to raise money, your first move should be to put together a good business proposal. The more information you include in your Business Plan, the greater the chances you have of Security a loan. An investor uses his money to make more money.

Important Rule

Page 4: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

He wants to make as much as he can, regardless of whether it’s a short term or long term deal. In order to attract him, interest him, and persuade him to “put in” the money you need, you’ll not only have to offer him an opportunity for big profits, but you’ll have to spell it out in detail; and further back up your claims with proofs from your marketing research.

Page 5: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Factors to Consider         Are your needs short-term or long-term? How quickly will you be able to pay back the loan or provide return on investment? Is the money for Operating expenses or for capital expenditures that will become assets, such as equipment? Do you need all the money now or in smaller pieces over several months?

Page 6: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Are you willing to assume all the risk if your company doesn’t succeed? Or do you want someone to share the risk? The answers to these questions will help you prioritize on the many funding options available.

Page 7: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

There are many sources available to a prospective, budding and even experienced entrepreneur who may need loan to boost his business. You could make your choice from the following:

WHERE TO GET LOAN FOR YOUR

BUSINESS

Page 8: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

        Many business owners strive to borrow money from family members or friends in order to start their new business. This could be one of the best sources of funds because these individuals that you approach respect and trust you, the approval is almost guaranteed and approval periods are usually very short. Example:

THE DANGOTE STORY

Family and Friends

Page 9: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

        Unlike loan, leasing is like long-term rental. At the end of the lease, you don’t automatically own the asset: you have the option to buy it at its residual value. A lease requires little or no money as down payment and is an alternative to purchasing such items as cars, machinery or office equipment.

Get Equipment to Conserve Cash

Page 10: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

By leasing instead of buying, your business can usually write-off the monthly lease expenses. There are many equipment leasing companies in Nigeria; they currently have an association called the Equipment leasing Association of Nigeria ELAN.

Page 11: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Federal Government Loan Assistant Programmes

        The Federal Government of Nigeria has been assisting start-ups through various programmes like Capacity Acquisition Programme for non-graduates, SURE-P, YOUWIN! where beneficiaries are entitled to N1 to N50m and above.

Page 12: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

        The most predominant types of informal finance savings in Nigeria is the Esusu or Ajo. Among the Igbo, it is called Isusu or Utu while the Edo call it Osusu. The Hausa call it Adashi, the Nupe Dashi, the Ibibio Etibe, while the Kalahari people call it Oku.  Some Esusu operate with written laws while others operate under an oath of allegiance and mutual trust. The general practice is that esusu associations contribute a fixed amount periodically and give all or part of the accumulated funds to one or more member(s) in rotation until all members have benefited from the pool.

The Informal Saving Sector

Page 13: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

If you have a share certificate or landed property, you can sell it to meet an emergency expense when you are starting your business. You can exchange your share certificate for cash within 3 days, and the amount you’ll receive is directly related to the value of the share certificate.

Selling Your Shares and Land

Page 14: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

        They are many in all nooks and crannies of the country. They give out loans between N5,000.00 to N500,000.00. However, special considerations could be given to clients who have good credit records to obtain more than this amount. Their target customers are the micro clients and the small/medium enterprises.

Microfinance banks

Page 15: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Many States and local governments in Nigeria have revolving loan funds used primarily as `gap` financing to bridge the gap between what a business needs and what it qualifies for. This type of financial assistance is carried out by the commercial banks on behalf of the local government.

State and Local Governments Revolving Loan Funds

Page 16: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

A lot of grant seekers have developed their businesses as a result of their ability to request for foreign grants from foreign grant makers. For instance, African Development Foundation (ADF). Support is focused on community groups and businesses where there is active involvement and participation of the other underserved population.

Foreign Grants Agencies

Page 17: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

        Unknown to many, especially an average Nigeria graduate with a lot of intelligence but with little or no work experience, you can use your initiative to genuinely create wealth from Nigerian millionaires to kick-start your business. Some of these Nigerian millionaire philanthropists will pay you if you can help them to solve or render a service.

Creating Wealth from Nigeria Millionaires

Page 18: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Some of the services you can provide are; writing their biographies, helping them to set up a foundation, honouring them with awards and so on.

They will pay you very well for rendering these services while you can, in turn; invest the money to start your business.

Page 19: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

    Co-operation societies date back to the time of our fore fathers, when they used to do communal contribution and communal work in turns. Now this has been modernized; and cooperatives are very relevant to financial and investment development of business-minded people. If you want to take their loan, you don’t need collateral; you only require two members to sign for you.

Cooperative Societies

Page 20: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

You can join a cooperative society’ if you haven’t yet, you can form one immediately, with a minimum of 10 members. This will give all the members easy access to loan as money lenders, government agencies and other financial institutions find it very easy to work with the cooperative society.

Page 21: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

How it works Gemcoop is a multipurpose cooperative society that empowers members to startup new businesses or support existing ones.

It is a voluntary self-help organization where members unite to foster their interest and pool resources together for profitable investment and business ventures.

GEM-COOP MULTIPURPOSE COOPERATIVE SOCIETY

Page 22: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

To properly harness resources of members contributed towards common interest.

To make loans available easily to members at reasonable interest rate.

To cultivate and promote savings culture among our members.

To equip members with financial intelligence and investment mentality.

To help members acquire assets and other items of benefit to them etc

AIMS AND OBJECTIVES

Page 23: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

We hold meetings every 2nd and 4th Friday of Every Month by 4pm in Kuje

and last Saturday of every Month in Garki-office annex.

Meeting Days

Page 24: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Minimum Monthly Contribution is N2000 i.e N1000 per sitting.

Annual Registration is N2000 only.

Page 25: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Apart from having access to our numerous business opportunities, Gemcoop also pays you fifty percent (50%) of the membership fee of any new member you sponsor to join the cooperative.

Referral commissions are paid monthly into your bank account or through the membership I.D card that would be made available to you during registration.

Earning Potentials

Page 26: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

We also give our members the opportunity to save up to 70% on their investment without lifting a finger and earn up to 50% profit in months as Equity Share Holder (E.S.H). Bronze/Silver/Gold E.S.H

Page 27: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Membership is open to the general public and anyone can join, as no special skills or qualifications are required provided that you are sponsored by a registered member.

Membership

Page 28: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

 Our target beneficiaries include:

Business OwnersProfessionalsCivil servantsSmart Entrepreneurs etc

Page 29: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

You can also enjoy other membership benefits such as:

20% annual minimum profit on your savings

Cooperative meeting and interaction (Twice Monthly)

Skills Acquisition, Business Seminars, Health Talks

Access to loan without collateral Cooperative Promotions at discounted

rates Startup Capital and Business Ownership

etc

Special Membership Benefits

Page 30: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Loans are granted to qualified members without collateral usually demanded by banks.

Accessing loan with low interest by SME owners is like pushing a bull through the eye of a needle.

At Gemcoop, we promote members business, encourage savings and improve the socioeconomic standard of our members.

HOW DO I BECOME ELIGIBLE TO APPLY FOR LOANS?

Page 31: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Once you have started saving regularly with Gemcoop (8-12week) and have built up a saving pattern then you become eligible to take advantage of our loan facilities.

There is no limit to the amount of savings a member can make with the society.

Page 32: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

To become rich and wealthy and to gain financial independence, you must not spend beyond 70% of your income per time.

For every Naira you make; either salary or income, you must make sure that 30% exits your hand to God and your future.

30% 100% income 70% 10% tithe / charity 10% saving Investment /savings 20% 10% personal Development 70% - what you live on.

The 30 / 70 principle

Page 33: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

For starters, save 1/3 of the amount you hope to borrow. Simply put, Gemcoop Cooperative gives you three times your total savings at 9% interest rate minimum.

This is dependent upon saving pattern, ability to repay and the decision of the Loan Committee.

HOW MUCH CAN I BORROW AND AT WHAT RATE AND DURATION OF

REPAYMENT?

Page 34: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Short Term loan is for a maximum period of two (2) Months while Long Term loan is for a maximum period of ten (10) Months at loan committee approved rate.

Page 35: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

Before I end this talk, HERE are SOME loan granting companies, contact them for financial assistance.

Page 36: Gemcoop-HOW AND WHERE TO GET LOAN WITHOUT COLLATERAL

#1.QUICK CASH ADVANCE 08036486718, 08022255890, 098705181. #2.ABUJA ENTERPRISE AGENCY GARKI II TEL: 08053912470 #3.ACE MF BANK OPP. AREA COUNCIL SEC. KUJE ABUJA.  TEL:08035047965. #5. GEM-COOP CO-OPERATIVE SOCIENTY TEL:  0809 474 9898 #6. Business Support MF Bank Utako-Abuja. Tel: 0704 092 9441 #7. DIRECT CREDIT A.K.A SHARP-SHARP Major branches of FCMB nationwide

Thanks and God Bless You!