In a groundbreaking collaboration, LoftyInc Group and SafeHaven
Microfinance Bank have joined forces to create an extraordinary line of credit scheme, aimed at revolutionising access to finance for startups and addressing the funding gap prevalent in Nigeria’s entrepreneurial landscape.
By introducing this game-changing initiative, the two industry leaders are empowering businesses to overcome financial hurdles and pave their way to success.
As a testimonial startups under Project Sparrow, a USAID – WATIH funded agriculture project have taken advantage of this laudable initiative to access finance for their businesses.
The collaboration between LoftyInc Group and SafeHaven Microfinance Bank to create a line of credit scheme is a testament to the impact of the USAID-WATIH project. Startups such as Tradebuza, Protein MeatyMart, Fishxtra, Farmer1st and Farmz2u have been able to leverage this initiative to raise finance, thanks to the support of USAID-WATIH. By empowering startups to access finance and build their businesses, the USAID-WATIH project is transforming the agribusiness landscape in Nigeria and paving the way for a brighter future.
Understanding the Difference: Loans vs. Line of Credit
When it comes to acquiring funds for business growth, entrepreneurs often find themselves facing a conundrum: should they opt for a traditional business loan or explore the possibilities offered by a line of credit? Let’s delve into the distinctions between the two.
Exploring the Dynamic Realm of Lines of Credit:
According to the World Bank’s Enterprise Surveys conducted in various African countries, a substantial portion of small and medium-sized enterprises (SMEs) cite lack of access to finance as a major constraint. The specific percentage varies by country, but it is a prevalent issue across the continent. To address this, you can apply for a business line of credit from a reputable bank or lending institution. This time, the lender will carefully examine your business’s financials and credit history to evaluate your
eligibility for a line of credit.
If your application is successful, you gain access to a predetermined credit limit. This credit line becomes a flexible resource that businesses can tap into whenever necessary to cover expenses. The intriguing aspect of a line of credit lies in the fact that you are only charged interest on the amount you borrow, providing you with better control over your finances. As long as you stay within the credit limit, you can repay and borrow again, giving your business the much-needed agility and adaptability required for growth.
The Significance of a Line of Credit for Every Business
For businesses striving to thrive and expand, the need for a line of credit becomes paramount. By maintaining a revolving credit account,
entrepreneurs can ensure they have ready access to funds whenever the need arises. This financial lifeline empowers businesses to navigate challenges, seize opportunities, and propel their activities forward with confidence.
With LoftyInc Group and SafeHaven Microfinance Bank at the helm, the landscape of startup financing in Nigeria is undergoing a remarkable transformation. By introducing an innovative line of credit initiative, these visionary entities are bridging the funding gap and democratizing access to finance for aspiring entrepreneurs. With this laudable stride, businesses can now unlock their full potential, driving economic growth and paving the way for a vibrant entrepreneurial ecosystem in Nigeria.