In order to successfully offer business loans to women entrepreneurs, a more targeted approach must be in place, both to reach women and to create effective, sustainable loan products for them.
Big or small, nearly every business seeks financing help at some point to carry out business expansion and growth.Access bank has introduce W Power Loan, facility designed to close the financing gap for female owned businesses by providing access to loans and credit facilities.
Female owned businesses can now request a loan from the Bank just after 30 days of operating an account. The package comes with benefits such as business advisory services, a flexible repayment period and a low interest rate as well as flexible security options, to ease the minds of the passionate business owners.
This loan facility is only available to women-owned businesses (at least 50% female ownership), managed by a woman and they can access up to 100million naira (One Hundred Million Naira) in loans.
Before now, women only approach microfinance bank for loan since the loan process is always easy to access and unwilling to approach commercial banks for the fear of being unable to repay, lack of spousal support, inability to understand the type of loan that best meets the need of their business amongst others.
Access bank W Power Loan is granted to women seeking for asset acquisition and infrastructure upgrades as well for those requesting for loan to purchase raw materials or settle other daily operating expenses of the business.
Access bank W Power Loan is grant to the following female entrepreneur
1.Fashion, Catering/Eateries, Manufacturing, Beauty & wellness, Hospitality & tourism, 2.Education, Information technology and Healthcare
3.Agricultural business with a focus on processing, distribution and packaging.
How can female entrepreneurs access W Power loans.
1.Have a workable business plan: It is necessary for you to go the extra mile to understand how your business works beyond making sales
2.Your business must be registered with CAC: Unfortunately, without registration, your business is not recognized as a legal entity and cannot enter into a contract with any financial institution
3.Organize your financial records: Some women assume that their businesses aren’t big enough to maintain records while some still regard the business funds as personal resources. It is important to distinguish these two things and maintain a financial record for your business no matter how rudimentary.
4. she must open a corporate account with Access Bank
Conditions precedent to loan disbursement
1.Completed and signed Loan Application form
3.Audited Report (mandatory for tier 1 and tier 2)
4.Bank statements (up to 12 months)
5.Duly executed guarantor form supported by notarised statement of net worth
6.Duly executed offer letter
8.Satisfactory credit checks
9.Execution of all necessary documents for the Credible Guarantor/ perfection of Legal Mortgage/All Asset debenture
1.Credible guarantor for Tier 3 and 4 Customers
2.Asset financed for loan amounts up to 20 million Naira
3.All asset debenture for Tier 2 Customers
4.Legal Mortgage for Tier 1
A credible guarantor is one who can cover 120% of the loan facility with any of the following:
5.Ownership of a property which must be of a minimum value of 50 million in selected cities like Lagos, Abuja and any key commercial city
6.Notarized minimum net worth statement estimate of over 120% of the exposure
7.Senior Management Executive in a Public Liability Company or employee in a blue-chip company with minimum monthly salary of N1m and above evidenced by a statement of account for a six months period and letter from its employer.
8.Clean credit checks
9.For Business owners, minimum turnover of at least 100% more than the loan being secured and minimum of 1 year in operation
10.Cash back with guarantor’s deposit of 120% of the exposure
11.Provision of the Guarantor’s undated cheques covering 120% of the facility amount
Maximum loan per customer
The maximum loan per customer is N100m. However, depending on where a business falls in Access bank W Power Loan categorization, the maximum that applies per category is as follows:
Tier 1 = ₦100 million
Tier 2 = ₦50 million
Tier 3 = ₦20 million
Tier 4 = ₦5 million
What are the specific uses of Access bank W Power Loan?
1.Asset acquisition and infrastructure upgrade
2.Purchase of raw materials or stock in trade
3.Working capital requirements
What is the maximum tenor of the W Power Loan?
The repayment period can be up to 36 months and a maximum tenor of up to 12 months for working capital.
Interest rate and administrative fees
The loan interest rate is 15% per Annum with a one-off charge of 1% management fee and 0.5% credit life insurance on the promoter.
Required Equity contribution
interest borrower will have to contribute 20% for Tier 1- 2 customers and a minimum of 15% equity contribution is required for Tier 3 – 4 customers.
How can customers apply for Access bank W Power Loan facility?
The application form can be picked up at any Access bank branch or printed/ filled online from (https://www.accessbankplc.com/Personal-Banking/LOANS/W-Power-Loan.aspx)