This document discusses various funding options available for starting a new business. It emphasizes the importance of developing a good business proposal and plan to attract investors and secure loans. Some funding options covered include loans from family and friends, equipment leasing, government assistance programs, microfinance institutions, cooperative societies, and grants. The document provides details on how to access funding from cooperative societies in particular and highlights their benefits like access to loans without collateral.

2.  Staring a new business could be a stressful
venture, especially when you have to come up
with the start-up funding that is necessary to
ensure the success of your dream business.
 There are many options available to an
aspiring new business owner, but it is
important that you find a choice that will be
beneficial to you and your company. It pays
to do your research and ask around.

3.  Anytime you want to raise
money, your first move should
be to put together a good
business proposal. The more
information you include in your
Business Plan, the greater the
chances you have of Security a
loan. An investor uses his money
to make more money.

4.  He wants to make as much as he
can, regardless of whether it’s a
short term or long term deal. In
order to attract him, interest him,
and persuade him to “put in” the
money you need, you’ll not only
have to offer him an opportunity
for big profits, but you’ll have to
spell it out in detail; and further
back up your claims with proofs
from your marketing research.

5.  Factors to Consider
 Are your needs short-term or
long-term? How quickly will you be
able to pay back the loan or provide
return on investment? Is the money
for Operating expenses or for capital
expenditures that will become assets,
such as equipment? Do you need all
the money now or in smaller pieces
over several months?

6. Are you willing to assume all
the risk if your company
doesn’t succeed? Or do you
want someone to share the
risk? The answers to these
questions will help you
prioritize on the many
funding options available.

7.  There are many sources
available to a prospective,
budding and even
experienced entrepreneur
who may need loan to boost
his business. You could make
your choice from the
following:

8. Many business owners strive
to borrow money from family
members or friends in order to
start their new business. This
could be one of the best sources
of funds because these individuals
that you approach respect and
trust you, the approval is almost
guaranteed and approval periods
are usually very short. Example:
THE DANGOTE STORY

9. Unlike loan, leasing is like
long-term rental. At the end of
the lease, you don’t automatically
own the asset: you have the
option to buy it at its residual
value. A lease requires little or no
money as down payment and is
an alternative to purchasing such
items as cars, machinery or office
equipment.

10. By leasing instead of buying,
your business can usually
write-off the monthly lease
expenses. There are many
equipment leasing companies
in Nigeria; they currently have
an association called the
Equipment leasing Association
of Nigeria ELAN.

11.  Federal Government Loan Assistant Programmes
 The Federal Government
of Nigeria has been assisting
start-ups through various
programmes like Capacity
Acquisition Programme for
non-graduates, SURE-P,
YOUWIN! where beneficiaries
are entitled to N1 to N50m
and above.

12. The most predominant types of informal
finance savings in Nigeria is the Esusu or
Ajo. Among the Igbo, it is called Isusu or
Utu while the Edo call it Osusu. The Hausa
call it Adashi, the Nupe Dashi, the Ibibio
Etibe, while the Kalahari people call it
Oku. Some Esusu operate with written laws
while others operate under an oath of
allegiance and mutual trust. The general
practice is that esusu associations
contribute a fixed amount periodically and
give all or part of the accumulated funds to
one or more member(s) in rotation until all
members have benefited from the pool.

13. If you have a share certificate or
landed property, you can sell it
to meet an emergency expense
when you are starting your
business. You can exchange your
share certificate for cash within 3
days, and the amount you’ll
receive is directly related to the
value of the share certificate.

14. They are many in all nooks
and crannies of the country. They
give out loans between N5,000.00
to N500,000.00. However, special
considerations could be given to
clients who have good credit
records to obtain more than this
amount. Their target customers
are the micro clients and the
small/medium enterprises.

15. Many States and local governments
in Nigeria have revolving loan
funds used primarily as `gap`
financing to bridge the gap
between what a business needs
and what it qualifies for. This type
of financial assistance is carried
out by the commercial banks on
behalf of the local government.

16. A lot of grant seekers have
developed their businesses as a
result of their ability to request
for foreign grants from foreign
grant makers. For instance,
African Development Foundation
(ADF). Support is focused on
community groups and
businesses where there is active
involvement and participation of
the other underserved population.

17. Unknown to many, especially
an average Nigeria graduate with
a lot of intelligence but with little
or no work experience, you can
use your initiative to genuinely
create wealth from Nigerian
millionaires to kick-start your
business. Some of these Nigerian
millionaire philanthropists will pay
you if you can help them to solve
or render a service.

18. Some of the services you can
provide are; writing their
biographies, helping them to
set up a foundation,
honouring them with awards
and so on.
 They will pay you very well for
rendering these services while
you can, in turn; invest the
money to start your business.

19. Co-operation societies date back to
the time of our fore fathers, when they
used to do communal contribution
and communal work in turns. Now this
has been modernized; and
cooperatives are very relevant to
financial and investment development
of business-minded people. If you
want to take their loan, you don’t
need collateral; you only require two
members to sign for you.

20. You can join a cooperative
society’ if you haven’t yet, you
can form one immediately,
with a minimum of 10
members. This will give all the
members easy access to loan
as money lenders, government
agencies and other financial
institutions find it very easy to
work with the cooperative
society.

21.  How it works
 Gemcoop is a multipurpose
cooperative society that empowers
members to startup new businesses or
support existing ones.
 It is a voluntary self-help
organization where members unite to
foster their interest and pool
resources together for profitable
investment and business ventures.

22. To properly harness resources of
members contributed towards
common interest.
To make loans available easily to
members at reasonable interest rate.
To cultivate and promote savings
culture among our members.
To equip members with financial
intelligence and investment mentality.
To help members acquire assets and
other items of benefit to them etc

23. We hold meetings every
2nd and 4th Friday of
Every Month by 4pm in
Kuje
and last Saturday of every
Month in Garki-office
annex.

24. Minimum Monthly
Contribution is
N2000 i.e N1000
per sitting.
Annual Registration
is N2000 only.

25.  Apart from having access to our
numerous business opportunities,
Gemcoop also pays you fifty percent
(50%) of the membership fee of any
new member you sponsor to join
the cooperative.
 Referral commissions are paid
monthly into your bank account or
through the membership I.D card
that would be made available to you
during registration.

26. We also give our members
the opportunity to save up
to 70% on their investment
without lifting a finger and
earn up to 50% profit in
months as Equity Share
Holder (E.S.H).
Bronze/Silver/Gold E.S.H

27. Membership is open to the
general public and anyone
can join, as no special skills
or qualifications are
required provided that you
are sponsored by a
registered member.

28. Our target beneficiaries include:
Business Owners
Professionals
Civil servants
Smart Entrepreneurs etc

29.  You can also enjoy other membership
benefits such as:
 20% annual minimum profit on your savings
 Cooperative meeting and interaction (Twice
Monthly)
 Skills Acquisition, Business Seminars, Health
Talks
 Access to loan without collateral
 Cooperative Promotions at discounted rates
 Startup Capital and Business Ownership etc

30.  Loans are granted to qualified
members without collateral
usually demanded by banks.
 Accessing loan with low interest
by SME owners is like pushing a
bull through the eye of a needle.
 At Gemcoop, we promote
members business, encourage
savings and improve the
socioeconomic standard of our
members.

31.  Once you have started saving
regularly with Gemcoop (8-
12week) and have built up a
saving pattern then you
become eligible to take
advantage of our loan
facilities.
 There is no limit to the
amount of savings a member
can make with the society.

32.  To become rich and wealthy and to gain
financial independence, you must not spend
beyond 70% of your income per time.
 For every Naira you make; either salary or
income, you must make sure that 30% exits
your hand to God and your future.
 30%
 100% income 70%
 10% tithe / charity
 10% saving
 Investment /savings 20%
 10% personal Development
 70% - what you live on.

33.  For starters, save 1/3 of the
amount you hope to borrow.
Simply put, Gemcoop Cooperative
gives you three times your total
savings at 9% interest rate
minimum.
 This is dependent upon saving
pattern, ability to repay and the
decision of the Loan Committee.

34.  Short Term loan is for a
maximum period of two (2)
Months while Long Term loan
is for a maximum period of
ten (10) Months at loan
committee approved rate.

35. Before I end this talk,
HERE are SOME loan
granting companies,
contact them for
financial assistance.

36.  #1.QUICK CASH ADVANCE
 08036486718, 08022255890, 098705181.
 #2.ABUJA ENTERPRISE AGENCY
 GARKI II TEL: 08053912470
 #3.ACE MF BANK
 OPP. AREA COUNCIL SEC.
 KUJE ABUJA. TEL:08035047965.
 #5. GEM-COOP CO-OPERATIVE SOCIENTY
 TEL: 0809 474 9898
 #6. Business Support MF Bank
 Utako-Abuja. Tel: 0704 092 9441
 #7. DIRECT CREDIT A.K.A SHARP-SHARP
 Major branches of FCMB nationwide
Thanks and God Bless You!