Standard Chartered Bank — how to get an SME business loan or financing

Standard Chartered Nigeria has a wide range of finance products and services for business owners.

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Standard Chartered Bank Nigeria is a subsidiary of the larger Standard Chartered Bank PLC — which is headquartered in the United Kingdom.

Standard Chartered offers several different banking products and services. Through these offerings, the bank is able to finance a number of Nigerian businesses — in key sectors of the economy such as oil and gas, telecoms, FMCG and more.

Funding and types of business loans available through Standard Chartered Bank

Import Finance

Standard Chartered has a mix of import financing solutions available. The Bank is able to issue your business with products like bank guarantees — helping to facilitate your contractual obligations. The bank can also fund your importation of goods — through things like letters of credit and documentary collections.

Export Finance

With its export finance services, Standard Chartered can help your business export goods worldwide. It can offer both pre and post-shipment funding, and is able to handle various trade financing documentation on your behalf.

Supply Chain Financing

Standard Chartered supply chain finance solutions, enables you to extend payment terms with your suppliers — while at the same time, giving these suppliers the option of getting paid earlier. A win-win solution for both parties.

Receivables Financing

Receivables financing or invoice financing, is a form of working capital finance. Use this credit facility, to get a cash advance — backed by any unpaid invoices you have.

Overdraft

Finance your daily cash flow needs, with Standard Chartered’s business overdraft facility. For instance, an overdraft can be used to pay for unexpected expenses. This facility, is typically made available in connection with your business current account.

Loans Against Property

Through this facility, Standard Chartered extends credit to companies looking to finance — the acquisition of assets, business expansion and other long term business needs. It is a secured loan, with property as collateral. Up to 70% of the market-value of a property, can be advanced.

Business Mortgage

Standard Chartered, with its commercial mortgage product, offers you the chance to acquire property that is to be used for business purposes. Use this facility to buy — your business premises, a warehouse and many other things. The underlying property acts as collateral for the loan. You can borrow the funds for up to 20 years, and can get the mortgage with a 20% deposit.

Term Loans

Term loans, from Standard Chartered, are a way of borrowing money to finance very specific transactions or assets. Here, money is typically drawn all at once, and repayments are spread over a number of months or years. Repayments can be tailored to your needs — for example, you may be able to make monthly, quarterly or even annual repayments. Both short and long-term loans are on offer.

Corporate Finance

The corporate finance solutions, available from Standard Chartered, include merger and acquisition finance, project finance, leveraged finance and structured finance.

Loan Syndication

Standard Chartered specializes in originating, structuring, and executing syndicated loans, and bridging finance — for large organizations.

Qualifying for a Standard Chartered Bank business loan

Standard Chartered Nigeria has a range of finance products and services, designed to suit your business needs. Different eligibility criteria, apply to different products and services. Some products or services may be unavailable to you — as they may be location dependent.

As well as certain lending criteria, that apply to specific products, there are also general lending requirements that must be met. One of these requirements is having a profitable business. Another requirement is having a good credit history.

Companies with poor credit history, that do not generate reasonable amounts of cash flow — will likely be seen as not creditworthy. This is the case whether you are seeking an unsecured loan with Standard Chartered, or any other bank in Nigeria.

Businesses that are able to offer collateral, may be able to get some sort of asset based loan — where credit history typically plays a slightly less important role.

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

Standard Chartered Bank can only provide you with business funding, if your company is registered with the CAC. Accordingly, private individuals are not eligible for business financing.

However, private individuals, with unregistered businesses — can consider taking out a personal loan. You may be able to use a personal loan for business purposes.

A further alternative, is to apply for finance with SukFin — who can provide you with other funding options.

How to apply for a Standard Chartered Bank business loan

Researching the financing products on offer, is the first step anyone looking for a business loan should take. To do this you can — visit a Standard Chartered branch, browse the bank’s website, send an email or call their customer service hotline.

Any subsequent loan application — will commonly involve you filling in an application form, and submitting any relevant supporting documentation.

The application form will require you to give various details of your business, and to state the purpose of the loan. Together with any relevant documentation, and any publicly available information — Standard Chartered will then be able to make an informed lending decision.

Should you be approved for financing — you will be issued with an approval letter. This letter will detail any applicable terms and conditions, and the procedure for loan disbursement.

Some of the supporting documentation, that you may need to provide 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)

More or less than the above may be required — depending on the credit facility in question.

Frequently asked questions (FAQs)

How long will it take before receiving funds from Standard Chartered Bank?

Loan disbursement times differ — in accordance with the credit facility in question. Usually, the larger the loan request — the longer it takes to receive funds.

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

There is no fixed repayment timeline. Standard Chartered lends both for the short and long-term.

How much can I borrow from Standard Chartered Bank?

Standard Chartered is capable of funding almost any business in Nigeria — big or small. Accordingly, the funding amount is mainly restricted by your company’s capacity to make repayment.

What is the interest rate charged on a Standard Chartered Bank loan?

The type of business you have, and the finance product sought — are what determine your actual borrowing rate.

Does Standard Chartered Bank require collateral?

Yes, in most cases, Standard Chartered will require some kind of collateral. This is particularly true, when large amounts of money are requested.

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)

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