Every Entrepreneurs seeks financing help at some point either to invest in an expansion opportunity for your business when it is booming, Purchase of Equipment,buy Inventory or Increase Working Capital.
Access Bank Plc has unveiled W Power Loan, Technology Loan and Cashflow Loans which come 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.
When it comes to your business, you want to do everything in your power to ensure that it grows and thrives. Access bank provides you with unsecured business lending solutions that cater to your diverse needs.
The Bank has put measures in place to dispel some of the fears about taking a loan, there are ways female entrepreneurs or business owners to access loans to grow and expand their business from the comfort of their homes which can position their businesses to access loans.
For the purpose of this article e shall discuss both W Power Loan, Technology Loan and Cashflow Loans by Access
1. Cashflow Loans by Access
This a digital lending portal which allows business owners to access loans. Cashflow Loans by Access provides an online platform accessible to Small and Medium Enterprise so that they can apply, process and receive their loans from home.
The Minimum amount you can apply for is 1m and the maximum amount is 5m it have discount in interest rate when you apply via the cash flow online platform
Who is eligible to apply Cashflow Loans
A business owner with a business account that is passionate about his business growth, development, goal and objectives that needs finance to help him/her achieve this goals. The Cash flow loan is a Business loan and as such cannot be availed to an unregistered business. The bank will be glad to assist register your business after which you can apply for the loan.
However, Your lending officer would advise you on all conditions you need to meet to qualify for a lesser interest rate when you pay back before maturity date.
Before you can apply for Cashflow Loans by access bank, you must open a business account in Access bank and apply instantly. Your business account offers you other existing benefits such as free business website creation, business registration, invitation to business seminars and an opportunity to advertise on the Ebonylifetv.
There are two different type Cashflow Loans, working capital and asset finance
i. working capital: This the money that remains if you subtract a company’s current liabilities from its current assets.Working capital is money that’s available to a company for its day-to-day operations. it can affects many aspects of your business, from paying your employees and vendors to keeping the lights on and planning for sustainable long-term growth .Getting a true understanding of your working capital needs may involve plotting month-by-month inflows and outflows for your business
ii. Asset financing is often used as short-term funding solution – to pay employees, suppliers or to finance growth. It provides a more flexible way of borrowing compared to traditional bank loans. For growing businesses and start-ups especially, it provides an easy way to increase working capital.
How to apply for Access bank Cashflow Loans
To apply for Cashflow Loans visit the bank online portal: https://cashflow.accessbankplc.com/customer/loan-application and choose your prefer loan as explained above.
2. W Power Loan
The W Initiative loans can easily accessible to women, W Power Loan is designed to close the financing gap for female owned businesses by providing access to loans and credit facilities. This loan is only available to women-owned businesses (at least 50% female ownership), managed by a woman.
The loans are granted in two broad areas:
Term Loan: meant for asset acquisition and infrastructure upgrades, use this loan to buy machinery, equipment and all other fixed assets needed for your business.
Working Capital: use this loan to purchase raw materials or settle other daily operating expenses of the business.
Terms and Conditions to apply for Access bank W Power Loan
1. business must have been in operation for at least a year.
2.Loan Application Form
4. One (1) year bank statement
5. Credit checks
6. CAC documents
7. Valid means of identification
8. BVN validation page of directors/proprietor
9. BOQ (for project related transactions)
10.Credible Guarantor form and notarised statement of net worth
11. Additional documents for Drawdown
12. Domiciliation Letter
13. Simple resolution (Business enterprises) or Board resolution (Corporate)
14. Evidence of Insurance cover and Credit life insurance
15. Offer letter
16. Executed Term sheet
18. Credit Checks
19. Advisory mandate letter
20. Direct debit mandate
21. Standing instruction to renew credit life insurance
Focused sectors for the W Power Loan?
All businesses are accommodated with a special focus on the following sectors:
1. Fashion, Catering/Eateries
3. Beauty & wellness
4. Hospitality & tourism
6. Information technology
8. Agricultural business with a focus on processing, distribution and packaging.
Purpose and use of the loan
The W Power Loan can be used to finance:
1. Asset acquisition and infrastructure upgrade
2. Purchase of raw materials or stock in trade
3. Working capital requirements
4. Invoice discounting
Tenor for Access bank W Power Loan
The repayment period can be up to 36 months and a maximum tenor of up to 12 months for working capital.
Eligibility Criteria for Access bank W Power Loan
1. Ownership: The business should be least 50% female Ownership
2. Yrs. of Operation: From 1- 10yrs Operation before you can apply
3. Staff Strength: your staffs should be from minimum of 2 – 20 workers
4. Max Loan: loan amount goes from 2million naira up to 20million
5. Equity Contribution: 20% is required for Tier 1- 2 customers and a minimum of 15% equity contribution is required for Tier 3 – 4 customers.
6. Tenor: The duration of the loan is up to 12-36months
7. Security: this comprises of Legal Mortgage, All Asset Debenture and Credible Guarantor with undated cheques and Credible Guarantor plus undated cheques
Or Cash Flow Lending Methodology
8. Interest rate: 15% per Annum and one-off charge of 1% management fee and 0.5% credit life insurance on the promoter.
How can customers apply for this loan facility?
Application form can be picked up at any branch or printed/ filled online from (https://www.accessbankplc.com/Personal-Banking/LOANS/W-Power-Loan.aspx)
Who is a credible guarantor?
1. A credible guarantor is one who can cover 120% of the loan facility and meet at least one of the under listed conditions:
2. 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
3. Notarized minimum net worth statement estimate of over 120% of the exposure
4. 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.
Clean credit checks
5.For Business owners, minimum turnover of at least 100% more than the loan being secured and minimum of 1 year in operation
6. Cash back with guarantor’s deposit of 120% of the exposure
Provision of the Guarantor’s undated cheques covering 120% of the facility amount
3. Acces bank technology loan:
This loan facility designed to purchase tools and equipment, grow your IT business and expand it. Hoever, it advisable to open Diamond Business Advantage account. The account is designed to add value to your micro, small and medium scale business so you can grow your enterprise with smart banking.
1. Fixed asset finance up to 3 years
2. Competitive pricing and no hidden charges
3. Financial advisory services available
4. Option to pay back loan before expiration without penalty
5. Lending limit of up to N20m
6. Lending covers a wide variety of assets/equipment including vehicles, generators, computers and other office equipment.
7. Up to 90days moratorium applicable where installation of financed equipment is required.
8. Minimum contribution as low as 30%
Eligibility Criteria to access technology loan
1. Business must be duly registered with Corporate Affairs Commission
2. Business must have been operational for at least one year
3. For revolving credit, customer must demonstrate a need for the facility and is expected to utilize facility once availed