A more targeted approach is required to successfully offer business loans to women entrepreneurs, both in terms of reaching women and developing effective, long-term loan products for them.
Whether large or small, nearly every company needs financial assistance at some point in order to expand and grow.
W Power Loan is a facility introduced by Access Bank to bridge the financing gap for female-owned businesses by providing access to loans and credit facilities.
Female-owned businesses can now apply for a loan from the Bank after only 30 days of account operation. To ease the minds of passionate business owners, the package includes business advisory services, a flexible repayment period and low interest rate, as well as flexible security options.
This loan facility is only for women-owned businesses (at least 50% female ownership) that are managed by a woman, and they can borrow up to 100 million naira (one hundred million naira).
Previously, women only approached microfinance banks for loans because the loan process is always simple to access, and they were hesitant to approach commercial banks for fear of not being able to repay, lack of spousal support, and inability to understand the type of loan that best meets their business’s needs, among other reasons.
Bank access W Power Loans are given to women who want to buy assets or upgrade their infrastructure, as well as those who want to buy raw materials or pay for other day-to-day business expenses.
THE FOLLOWING FEMALE ENTREPRENEUR WILL RECEIVE A POWER LOAN FROM ACCESS BANK.
1. Fashion, catering/eating establishments, manufacturing, beauty and wellness, hospitality and tourism 2.Healthcare, education, and information technology
3.Agricultural company specializing in processing, distribution, and packaging.
HOW CAN FEMALE BUSINESS OWNERS GET POWER LOANS?
1.Have a viable business plan: You must go above and beyond to understand how your business operates beyond making sales.
2.Your company must be registered with CAC: Without registration, your company will not be recognized as a legal entity and will be unable to enter into contracts with financial institutions.
3.Organize your financial records: Some women believe their businesses are too small to keep records, and others still consider their business funds to be personal assets. It’s critical to distinguish between the two and keep a financial record for your company, no matter how rudimentary.
4. She must open an Access Bank corporate account.
PREREQUISITES FOR LOAN DISBURSEMENT
1.A filled-out and signed Loan Application
3.Report on Audit (mandatory for tier 1 and tier 2)
4.Bank account statements (up to 12 months)
5.A properly completed guarantor form with a notarized statement of net worth
6.Well-written offer letter
7.BVN of the customer
8.Reliable credit checks
9.Completion of all documents required for the Credible Guarantor/Perfection of Legal Mortgage/All Asset Debenture
1.Credible guarantor for customers in Tiers 3 and 4
2.Financed assets for loans up to 20 million Naira
3.Tier 2 Customers’ entire asset debenture
4.Legal Tier 1 Mortgage
A credible guarantor can cover 120 percent of the loan facility with one or more of the following:
5.Ownership of a property worth at least $50 million in selected cities such as Lagos, Abuja, and any other major commercial city
6.A notarized minimum net worth statement estimating over 120 percent of the exposure is required.
7.Senior Management Executive in a Public Limited Company or employee in a blue-chip company with a minimum monthly salary of N1 million and above, as evidenced by a six-month statement of account and a letter from their employer.
8.Extensive credit checks
9.For business owners, a minimum turnover of 100 percent of the loan amount secured and a minimum of one year in operation are required.
10.Cash back with a deposit of 120 percent of the exposure from a guarantor
11.Provision of undated cheques from the Guarantor covering 120 percent of the facility amount
PER CUSTOMER LOAN MAXIMUM
The maximum loan available to each customer is N100 million. However, the maximum that applies per category varies depending on where a business falls in the Access bank W Power Loan classification:
Tier 1 = 100 million dollars
Tier 2 = 50 million dollars
Tier 3 = 20 million dollars
Tier 4 = $500,000
WHAT ARE THE DIFFERENT APPLICATIONS OF THE ACCESS BANK W POWER LOAN?
1.Acquisition of assets and infrastructure upgrades
2.Acquisition of raw materials or trade stock
3.Requirements for working capital
4.Discounting on invoices
What is the W Power Loan’s maximum term?
For working capital, the repayment period can be up to 36 months with a maximum tenor of 12 months.
ADMINISTRATIVE FEES AND INTEREST RATE
The loan interest rate is 15% per year, with a 1% management fee and 0.5 percent credit life insurance on the promoter as one-time charges.
EQUITY CONTRIBUTION IS REQUIRED
For Tier 1–2 customers, a minimum of 20% equity contribution is required, and for Tier 3–4 customers, a minimum of 15% equity contribution is required.
HOW DO CUSTOMERS APPLY FOR A POWER LOAN FROM ACCESS BANK W?
The application form is available at any Access bank branch or online (https://www.accessbankplc.com/Personal-Banking/LOANS/W-Power-Loan.aspx).