Stanbic IBTC Bank — how to get an SME business loan or financing

With Stanbic IBTC Bank you can get the funds needed to expand your business operations.

Stanbic IBTC Bank is a Nigerian financial services institution. It forms part of the bigger Stanbic IBTC Holdings PLC — which in turn is a member of the Standard Bank Group (based in South Africa).

Stanbic IBTC offers numerous different personal and commercial banking products. It operates through over 180 bank branches, spread throughout Nigeria, as well as through its digital banking platforms.

Funding and types of business loans available through Stanbic IBTC Bank

Agribusiness Finance

Stanbic IBTC provides a range of funding solutions for businesses involved with agriculture. These solutions can help with things like buying commodities, acquiring equipment or managing cash flow. Specific products offered include overdrafts, asset financing, revolving credit facilities, medium term financing and agricultural production loans.

Real Estate Finance

With the help of Stanbic’s property financing solutions — your business can get the funds it needs to construct, renovate or acquire commercial real estate. Housing estates, shopping malls, office complexes, hotels, schools and petrol stations are some of the things that can be financed through this facility.

Distribution Supply Chain Finance

Large manufacturers and distributors of wholesale goods, are the beneficiaries of this credit facility. Here, Stanbic IBTC provides funds that enable businesses to maintain cash flow. Interest rates are competitive.

Invoice Discounting

Through its invoice discounting facility, Stanbic allows your business to draw funds against unpaid invoices. This facility has a maximum tenor of 12 months, and up to 80% of the invoice total value can be provided.

Purchase Order Discounting

This Stanbic IBTC facility is similar to purchase order financing. Here, if you have a confirmed purchase order, Stanbic gives you the cash needed to fulfill the order and pay your suppliers. A maximum loan tenor of 120 days applies, and up to 64% of the value of the purchase order can be financed. Tangible collateral is not required.

Trade Finance

Stanbic Bank offers import and export finance products — to help Nigerian businesses trade goods and services across international markets. An example of a trade finance product offered is — a letter of credit.

Overdraft

Business overdraft facilities are flexible forms of credit, that can be used at any time during an agreed term. An overdraft is a great way to manage your cash flow and pay for unexpected expenses. Stanbic allows up to 60 months to repay any monies borrowed.

Qualifying for a Stanbic IBTC Bank business loan

For you to be eligible for a Stanbic IBTC Bank business loan — there are certain qualifying criteria that you are required to meet.

Some of these criteria are general lending requirements, while others are only applicable to specific loan products.

For almost any credit facility, there are two fundamental lending criteria. Firstly, your business’s ability to actually repay any borrowed funds — and secondly, your business’s credit history.

Your capacity to repay a loan is demonstrated by your monthly income or turnover. The more cash flows your business generates — the bigger the loan Stanbic can provide.

Companies with poor credit history, are unlikely to get a loan from not just Stanbic — but any bank in Nigeria. The exception to this rule, is when businesses are able to offer tangible assets as collateral — in which case they may be able to get a secured loan.

Other lending requirements may 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

Stanbic Bank business loans and other financing options, are normally only provided to companies that are registered with the CAC. The bank cannot directly fund your business — without it being registered.

If your business is not registered, another option is to obtain a personal loan. You may be able to use a personal loan or a salary advance, for business purposes.

Applying for a loan with SukFin is also something you should consider — to get even more business funding options.

How to apply for a Stanbic IBTC Bank business loan

The first step to applying for a business loan with Stanbic Bank, is doing your research. Read up on the different loan products on offer — to identify the products most suitable for your business. If you have more specific questions, you can always contact the bank via email or telephone.

To actually make an application, you have three options — visit your nearest Stanbic IBTC Bank branch, call the bank or email them.

Whichever way you apply, the subsequent application process is similar. You will need to provide information on your company’s trading history, its turnover and the purpose of the loan. These details will then be evaluated against Stanbic Bank lending guidelines.

Should you meet their eligibility requirements, Stanbic will issue you an approval letter. This letter will stipulate any terms and conditions you are required to meet — before funds are disbursed.

As part of any application, some of the basic documentation that can be 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)

It is important to note that, based on the credit facility sought, Stanbic IBTC may ask you for more (or less) documentation.

Frequently asked questions (FAQs)

How long will it take before receiving funds from Stanbic IBTC Bank?

The time it takes for a loan to be disbursed varies — according to the credit facility in question. Generally, where small unsecured loans are required — funds are released relatively quickly

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

Stanbic Bank has flexible repayment structures — that can be tailored to your needs. Both long and short-term credit facilities are on offer.

How much can I borrow from Stanbic IBTC Bank?

The amount of money that you can borrow, is primarily determined by the size of your company. The more money you generate, the more money Stanbic can lend to you.

What is the interest rate charged on a Stanbic IBTC Bank loan?

Stanbic Bank interest rates are competitive. Your business operations and the credit facility that you apply for, determine your actual borrowing rate.

Does Stanbic IBTC Bank require collateral?

Collateral will be required when large amounts of money are requested. For smaller amounts of money, you may be able to get a loan without collateral.

Collateral or security that the bank may accept includes:

• 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

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