The simple Reason why Nigerian Startups get ‘resounding no’ from investors, banks
You have this big idea, and you are very convinced it will succeed, for you all that is left is the needed capital. The big question now is how do I secure funding to run and grow a sustainable business?
The truth is sourcing funding for a business is not necessarily easy to come by. But over the years private equity firms one of the go-to-place for start-ups, to raise capital has even become an option dreaded.
This firms ordinarily are there to provide financial backing and makes investments a possibility for startups, however in a chat with Rotimi Oyekanmi, Partner at Apis a private equity firm he told Businessday that many starts up will always get a resounding no, and not get the funds because the small businesses, many ‘so-called entrepreneurs’ failures to understand the nitty-gritty of their business.
He also noted that no investor will want to invest in a business with poor credit history or who have not tried and failed before, ” Failure is part of education and empowerment around creditworthiness is a core issue and can make or break a small business’s ability to get financing.”
Business owners, then, should determine where they stand and take control of the factors critical to the lenders, credit and even other businesses they work with.
Finding capital is becoming harder for a significant proportion of small businesses despite the wider variety of financing options available. Even though there are more lending options for small businesses than ever before, a crucial step is missing in the process; and no one is paying attention, leaving business owners increasingly frustrated over their rejections for credit lines and loans.
When owners understand their businesses competitors and what to expect, they have an easier loan approval experience and empowered to grow and thrive to help the economy thrive. That way both the investor and the entrepreneur wins.
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