Business Loans | First Bank: how to apply and requirements

Do you need more capital to finance your business operational cost, property development or refurbishment and you are considering a loan for your business and you don’t know type of loan to take.

Well First bank has a well tailored business loan that is designed to meet your business needs,medical Bills, Local Purchase Orders School fees e.t.c. As a business consultant, If you want your business to grow, you have to be able to invest in the expenses of growth, like equipment, advertising, and property.

But managing all those costs in addition are expense which require additional funds, First bank business loan can increase your business rate of turnover that can result in a high return on your investment.It also provide you with expansion opportunity for your business

Read: FirstEdu loan: How school owners can apply for operational loan| First Bank

Expansion and growth has many costs, whether it’s adding an additional location or building renovations, and increasing staff sizes, the up-front cost and change in overhead will be significant as Loans can help you cover the expenses of expanding your business without eating your operational funds.

You may also need to take a loan due to cash inflow to make your business stay afloat when profits are low as you keep up with the demand by replenishing your inventory with plentiful and high-quality options

In this post we are going to discuss various business loan you can apply with First bank Nigeria Plc. This comprises of the following:

1.First bank Secured Overdraft
2. Contract Finance
3.Secured Term loan
4.SME Products Financing
5.Local Purchase Orders Finance
6.Operational Vehicle
7.Revenue Loans and Overdraft

Read: How to apply for First Bank Home Loan and-mortgages & requirements

First bank Secured Overdraft

This kind of loan is secured overdraft that is designed to finance small to medium scale retail businesses with an annual turnover of N3billion and below as a working capital requirements of your business.

It assists businesses in managing their business cash flows,Supports business growth and expansion. Only SMEs with annual turnover up to N3billion can apply for this kind of First bank loan.

Accompanying Documents to enale you apply for Secured Overdraft

1.Application letter.
2.Duly completed Retail Loan Application Form.
3.Proforma Invoice from FirstBank approved vendors.
4.Company Profile.
5.Current ultility bill.
6.Latest audited account.
7.Six (6) months Bank statement.
8.Other KYC requirementsfor opening a corporate account.

Features

1.Maximum amount obtainable is N20 million.
2.Maximum tenor of 12 months.
3.Collateral – Legal Mortgage over property in FirstBank acceptable Locations or Treasury Bills/Fixed Term Deposit.

You may also like: How to apply for FirstBank Personal Loan Against Salary and FirstAdvance

2. Contract Finance

The loan facility is designed to help you fund bigger contracts from FirstBank-approved list of companies; for easy execution without challenges.

Accompanying Documents

1.Contract Papers issued by the company awarding the contract.
2.Bill of Quantity for the contract to be executed.
3.Evidence of previous similar contract(s) executed by Contractor.
5.Evidence of relevant government agency approval for contract.
6.Any other documents that may be required by the bank.

Features

1.Obligor must be the primary contractor of the Principal (not Sub-contractor).
2.Maximum facility tenor of 6 months, with an option of renewal over a maximum of 3 months.
3.Facilities above N50m will require an additional FirstBank acceptable security.
4.Loan amount not to exceed 70% of estimated total cost of executing the contract, 30% of which must be evidenced as customer’s equity participation.

3.Secured Term Loans

First bank Secured Term Loans facility help to provide retail organisations like yours with finance to execute capital projects like acquiring new technology, asset replacement etc.

Your business must have an annual turnover of N500 million and below before you can apply for this kind of loan from first bank. Retail businesses may obtain funds for capital projects while repayment is done on installments

Accompanying Documents

During loan application, borrowers must come with the following documents before their loan approval.

1.Application letter.
2.Duly completed Retail Loan Application Form.
3.Proforma Invoice from FirstBank approved vendors.
4.Company Profile.
5.Current utility bill.
6.Latest Audited Account.
7.Six (6) months Bank statement.
8.Other KYC requirements for opening a corporate account.

Features

1.Maximum amount is N40 million.
2.Maximum tenor of 36 months.
3.The facility is limited to 50% of the last six (6) months turnover.
4.Collateral – Legal Mortgage over property in FirstBank acceptable Locations or Treasury 5.Bills/Fixed Term Deposit.

Read: Firstbank Transfer Code:How to Transfer Money,Buy recharge card, account statement and account balance

4.First bank SME Products Financing loan

This kind of loan is designed for Small and Medium Scale Enterprises in following area of operations, Import Finance, Oil and Gas Contract Finance,Cement Distribution Finance,Invoice Discounting Finance,Bonds & Guarantee,Telecommunications Distributorship Finance,Petroleum Dealership Finance and Fast Moving Consumer Goods (FMCG) Key Distributorship Finance to help you create solutions for your business’ growth.

5.First bank Operational Vehicles loan

Operational Vehicle loan as part-finance to purchase new vehicles for your business. Only to be used for the day-to-day running of the business only & not for commercial transportation.

Accompanying Document

Due your loan application, borrower should go with the following documents to apply for First bank Operational Vehicles loan.

1.Application letter.
2.Duly completed Retail Loan Application Form.
3.Proforma Invoice from FirstBank approved vendors.
4.Company Profile.
5.Current ultility bill.

Features

1.Maximum loan amount of N10 million.
2.Maximum tenor of 36 months.
3.Minimum equity of 30%.
4.Vehicle must be purchased from a FirstBank approved vendor.
5.Insurance policy on the vehicle.

Also read: First Bank Ussd code:How to register,Check Mini statement of account and transfer money

6. Local Purchase Orders Finance

This loan facility is designed to provide short term financing to small and medium scale retail customers with annual turnover of N500 million and below facility to carry out supply orders.

Local Purchase Order Finance will enable you meet all your customers’ orders in time and never run out of stock again.

Accompanying Documents

1.Customer’s application letter.
2.Letter from Employer confirming the Invoice and stating details / time of payment.
3.Valid means of identification (National ID, International passport or Drver’s License) of prime mover or 2 of the company directors for limited liability companies.
4.Six (6) months statement of account.
5.LPO supply paper.
6.Letter of domiciliation of contract payment from Employer Company.

Features

1.LPO finance is subject to a maximum tenor of 90 days with the option of 60 days renewal after the expiry of the facility.
2.Loan Amount does not exceed 70% of cost of supply.
3.Irrevocable Tripartite domiciliation of agreement in respect of Contract proceeds executed by beneficiary company, FirstBank and the employer company.
4.The employing company must be on the FirstBank list of Principals.

5.Latest Audited Account.
6.Six (6) Months Bank Statement.
7.Other KYC requirementsfor opening a corporate account.

Read: FirstBank: How to check statement of account, Account balance and Create Pin

How to Apply

To apply for any first bank Business loan, interested borrower should check with their loan requirement and supporting documents. Download the Retail Loan Application Form
Complete the form and with the accompanying documents, submit at the nearest FirstBank branch

 

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