Fidelity Bank — how to get an SME business loan or financing

No matter your funding requirements — Fidelity Bank can help.

Fidelity Bank is a large commercial bank — with headquarters in Lagos, Nigeria. It began operations in 1988 as a merchant bank, and has grown to become one of the top 10 banks in Nigeria.

The bank has over 5 million customers — who are served through 250 business offices and via digital channels.

Fidelity Bank has services for micro, small and medium-sized enterprises (MSMEs) — as well as large corporate organizations.

Funding and types of business loans available through Fidelity Bank

Commercial Support Short Term Loan (CSST)

Through this facility, Fidelity Bank can disburse short-term loans to MSMEs — for a maximum period of 90 days. Businesses need to have relatively stable cash flows to apply.

Commercial Support Overdraft (CSO)

Fidelity Bank provides business overdraft services through this facility. It is perfect for managing short-term obligations, and covering unexpected expenses.

Development Bank of Nigeria (DBN) On-lending Scheme

The Development Bank of Nigeria, through participating financial institutions like Fidelity Bank, gives businesses access to credit. DBN loans tend to be very favorable — with lower interest rates and longer repayment periods. Any business involved in productive enterprises, is eligible for a loan with the DBN.

Bank of Industry (BOI) On-lending Scheme

Fidelity Bank collaborates with the Bank of Industry, to provide longer term financing — to the industrial sector of the Nigerian economy. Both small and medium-sized enterprises (SMEs) and larger organizations, are the beneficiaries of this scheme. Focus sectors include agribusiness, technology, energy, solid minerals and the creative industry.

CBN MSME Development Fund

This Central Bank of Nigeria (CBN) intervention fund, enables MSMEs to borrow money at the single digital interest rate of 9%. Fidelity Bank is a participating financial institution — who can arrange this loan for you. A maximum loan tenor of 3 years applies, and up to N50 million can be borrowed. Eligible businesses include those involved in manufacturing, healthcare, ago-processing, education, general commerce and more.

Fidelity Private Medical Support Scheme (FP-MEDSS)

Businesses involved in the medical sector, may benefit from this Fidelity Bank scheme — for example, medical doctors or dentists.

Fidelity Pharmacy Support Facility

With this product, pharmacies are able to better manage their working capital needs. Any borrowed money can be used to purchase stock. Interest rates are below the market rate, and the funds can be advanced very quickly (often within 48 hours).

Fidelity Eduloan

Registered private schools, are able to have their funding requirements met — with the help of this finance product. Here, Fidelity Bank provides funds as either a term loan, or an overdraft facility. Schools must have been in operation for at least 3 years to apply.

Corporate Banking

Through various corporate banking products and services, Fidelity Bank supports rapidly growing businesses, more established middle-market companies and larger organizations — meeting all their unique funding needs. Here, products and services offered include working capital finance, trade finance, asset finance, project finance, loan syndication, leases, bank guarantees and more.

Qualifying for a Fidelity Bank business loan

Companies must meet a number of qualifying criteria — in order to access a business loan from Fidelity Bank. Although there are general lending requirements, that apply to whatever finance product you are interested in, different products will have their own specific criteria.

Additionally, certain products or schemes are only available to sector specific businesses — particularly in the case of some government-backed intervention funds.

No matter the credit facility sought — you will need to provide proof of regular monthly cash flow or income. Further, a decent credit history is also required.

Good credit history is especially vital for unsecured loans, but is relatively less important for secured loans — where the actual collateral offered is key.

Other lending criteria can also include:

• Having a registered business or company — with the Corporate Affairs Commission (CAC)
• Having a business or corporate bank account
• Been trading for some time (1-3 years minimum)
• Must have a good Credit Bureau Report — with no unpaid obligations or bad debt
• Being an active customer of the bank

If your business is unregistered — it would be difficult to get a business loan from Fidelity Bank.

An alternative is to seek a personal loan, or a salary advance — both of which are products that Fidelity offers. You may then be able to use the personal loan for business purposes.

A further option is to consider applying for a loan with SukFin.

How to apply for a Fidelity Bank business loan

Making a business loan application with Fidelity Bank is convenient — as you can apply both in person and through the internet.

The bank also has an online loan calculator — which can be used to get an idea of how much you can borrow, over what term and what the applicable interest rates are. Further, before making an application, you have the option of phoning or emailing the bank for more information.

Once an application has been made — it will be evaluated against Fidelity Bank lending guidelines. Your business’s activities and its financials will all be assessed — together with the purpose of the loan. This will allow the bank to make an informed lending decision.

If you are approved for financing, terms will be laid out in an offer letter. Once you meet the stipulated conditions, monies will be advanced to you.

A list of important documentation, often asked for includes:

• Completed application form
• Company profile
• Business plan
• Cash flow budget
• Bank statements (12 months)
• Audited financial accounts
• Certificate of Incorporation
• Valid means of identification (driving license, passport, voters card)
• Proof of address
• Details of collateral offered (if any)

Note. Each credit facility will have its own specific requirements — more or less may be asked for.

Frequently asked questions (FAQs)

How long will it take before receiving funds from Fidelity Bank?

Fidelity Bank offers a range of finance products, each of which comes with their own application processes. Some smaller loans can be advanced within a few days, while other larger loans may take a few weeks.

How long do I have to pay back a Fidelity Bank loan?

Finance tenors vary. Short and long-term credit facilities are offered by Fidelity Bank.

How much can I borrow from Fidelity Bank?

Fidelity Bank has the capacity to fund almost any business in Nigeria — big or small. What primarily dictates how much you can borrow — is your company’s turnover. The bigger this is, the more money Fidelity will be willing to lend to you.

What is the interest rate charged on a Fidelity Bank loan?

The interest rates charged by Fidelity Bank differ. Having said this, there are relatively low (single digit) interest rate products on offer.

Does Fidelity Bank require collateral?

Like with most commercial banks in Nigeria — Fidelity Bank can lend to companies that do not have collateral. However, the amount of money that the bank will be willing to lend to you, on an unsecured basis, is limited.

Acceptable forms of collateral or security can include:

• Obligations of the Federal Government of Nigeria (FGN Bonds, FGN Eurobonds, FGN Treasury Bills etc.)
• Obligations of state governments or agencies of the Federal Government of Nigeria
• Other non-government debt instruments
• Physical assets e.g. real property
• Third party guarantors (or collateral)

SukFin — Every type of finance for every kind of business

We help SMEs in Nigeria find finance — as fast as possible