GroFin is offering to finance small and growing businesses across Nigeria. If you’re an entrepreneur and you need extra capital to scale up, you might get the support you’re looking for from them.
Your business could get a boost worth between $100,000 and $1.5 million if your application meets their criteria.
GroFin is a private development finance institution, and they’re helping SMEs in Africa and the Middle East with the finance they require to expand and become more regionally competitive.
Read more about Business
Starting in 2004, the institution has aided over 700 businesses in 15 countries, especially those operating in the agribusiness, construction, education, healthcare, manufacturing, professional services, and wholesale and retail sectors. GroFin is backed by several international development finance institutions and private funders.
In 2015, they announced a $100 million fund for SMEs in Nigeria, Egypt, Ghana, Kenya, South Africa, Rwanda, Tanzania, Uganda, and Zambia. It’s targeted at emerging enterprises in areas or sectors that have not been fully served by traditional financial institutions.
Every year, between 80 and 100 businesses in these regions benefit from this fund, receiving investments of up to $1.5 million in their local currency.
If you’d like your business to benefit from this fund, here’s what you should do.
Eligibility for the GroFin Fund
In order to qualify for this fund, your enterprise has to meet these criteria.
•Operational within any of the countries mentioned (in this case, Nigeria).
•Must be a profit-earning entity.
•It should have an annual turnover of less than $15 million and assets valued at less than $6 million.
•Should need funding within the range specified for the fund ($100,000 – $1.5 million).
•The entrepreneur should have a significant stake in their own business.
The Steps to Getting the GroFin Fund
1. Apply for Funding
You can do this on the GroFin website. Your application will be reviewed to determine its suitability based on GroFin’s own criteria. If they decide to engage your business further, you’ll be assigned an investment manager with whom you can liaise all through the process.
2. Business Assessment
The investment manager will assess your business and help you prepare it for possible investment.
Sign up to the Connect Nigeria daily newsletter
3. Review and Approval
Your application will be evaluated by a panel on a number of criteria, including entrepreneur profile, social impact, and profitability. If your application is approved, a formal letter will be sent to you containing an offer to fund your business.
4. Funding
This comes after you meet the conditions set out in the offer letter mentioned above. You will also strike an agreement with them for repaying the loan. The tenure period usually lasts between 3 and 8 years.
Besides funding, you’ll also get expert advice that should help you build your enterprise.
If you’d like to find out more about the GroFin Small and Growing Business Fund, click here.
Featured image source: Business Trumpet News
Did you find this article useful? Contact us via editor@connectnigeria.com