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31

WAYS OF RAISING

BUSINESS CAPITAL
WITHOUT GOING TO THE

BANK

Written By:
Godwin
Successedge International Abiodun Oyefeso 1
In ecclesiasts chapter 7 V 12, King Solomon said “money is a defence and also
said “money answereth all things”. Sufficient money (capital) can make or mar
any business establishment. Andrew Carnegie said “the value of all riches,
money included, consist in the use of one makes of them; not in their
possession”. It’s a usual saying that “No business is ever said to be done
anywhere in the world without money”. A good idea is welcomed and planning is
accepted but without money, both are useless, what you need to make your
dream a reality is the availability of money, no matter how small. A business is
not established until money exchange hands, equally, no business is ever
established in the world without money being involved directly or indirectly. The
need for start, maintain and expand an existing business cannot be over-
emphasised.

Raising money for business expansion or starting a new business is never an


easy task, except where someone inherits a fortune to tap into. Among other
reasons investment capital is hard to get in this part of the world are: fear of
losing money, the inability of the borrower to pay back, and lack of vision of what
to use the money for.

No matter how brilliant your idea maybe; no matter how promising your product
or service may seem, without adequate fund, the dream of becoming a
successful business person is a nightmare. According to Tom Hopkins, “The
single most important difference between champion achievers and average
people is their ability to handle rejection and failure” you cannot travel the road of
success and prosperity without obstacles to encounter.

However, don’t give up in your pursuit to bring your beautiful ideas to reality. All
the answer to your heart’s desire as regard starting a new business or expanding
on existing one that are not possible over the years for lack of capital are over
today. This is not a dream but a reality.

I mean your problems of lack of money are over today.

Am happy to inform you that there are 31 ways of raising business capital without
going to the bank Nigeria. Rember we are committed to seeing you succeed and
that is why we always go extra mile to get information that will transform your life.

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CREATIVE SOURCES OF SMALL BUSINESS FINANCE (2)

Market entrance is too challenging that no amount of analysis and programme


can effectively graph out what customer response and market factor would turn
out to be. No matter the depth of investigation and spread of analysis, the risk of
market acceptability of a product is like taking a simple measure of the distance
between heaven and earth; this is what fund providers (investors) are scared of.

The eyes of every potential entrepreneur found are on the opportunity found
and/or available in the market. But he never consider his positioning to catch and
take advantage of such opportunities. Whatever opportunity you are not
positionally prepared for it not meant for you. Conscious effort should therefore
be made by business people to positionally anticipate would-be opportunities,
even when they do not know or are aware of them. Fund sourcing for business,
based on good and sound judgement is the instrument for catching opportunities
– taking more advantage to gain more/better advantages. Everything is a
process of opportunity. Good cash flow is a catcher of opportunity.

THIRTY ONE WAYS TO RAISE BUSINESS CAPITAL

The lord is practical and complete – He does not give unnecessary load to
people rather provision is made at every point in every enterprise.

When Adam was to start his trade, all the resources required were made
available – “and the Lord God planted a garden eastward in Eden, and a river
went out of Eden to the garden.” Examining the story of Adam, when he was
commissioned into business, the three types of capital were provided for him:-

1. Starting capital – a garden was planted with all the resources.


2. Working capital – rivers were set around the garden to maintain and keep it
alive.
3. Capital stock – one of the rivers leads to the land of gold, (which serves
expansion purposes). In essence, all opportunities for expanding a business
is inherent in the present operation in good service/product, customer relation,
sound management of resources.

It is therefore almost certain that the situation has not changed - the Lord never
change nor alter his approach rather, it is men that continually display impatience
by seeking short cuts to the requirement of life.

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Adam Enterprise was the first business instituted and make a sample of how a
commercial venture should start run and expand. Everyman living and that would
ever live remains Adam in one picture.

1. STRONG IDEA

An idea is any product of inspirational action born out of deep thought,


imagination and impression. A product is not born from an idea if it is not
creative, extraordinary and solution providing.

A strong idea brings into life what does not exist, and/or better represent a
matter/issue/problem in an uncommon way. In a crowded market, strong idea is
the good for creating a niche distinguishing product or service among equals.

Jacob, the second son of Issac used strong idea to overcome the obstacle of
capital start his enterprise-and equally, over a very short time became wealthy.

“The strongest capital in the business world is idea”

Strong idea could be likened to wisdom, described in the earlier part of this
lecture. Gold is useless without good product designing and selling idea.

Which is stronger - money or idea? Capital provides the resources to produce the
goods while marketing sells them. “what then is the use of goods produced and
no one buys, except for the owner to feast his eyes on them?”

The burden of unsold commodities is weightier than that of unsecured capital.


Strong idea designs product, guarantees funding and resources for production,
and ensures market acceptability. Therefore, to grab all the ends/angles in the
economic process a strong idea is stronger than physical capital.

2. SAVINGS

Substance gathered and set aside from previous work engagements are
represented especially money laid aside for future use.

Regular savings especially money laid aside for future use.

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Regular savings (setting aside) from past and part of present earnings is a major
way of raising capital for business.

When Abraham left Haran, as instructed by the lord, he has to his possession
Sarah (his wife), Lot (his nephew), all possessions they have acquired (including
people).

Consistent and regular saving of money has two outstanding benefits:-

1. Preserves the future – raining days

2. Serves as the fishing net to take advantage of opportunities.

There is no other capital source that is as easy to access than money previously
set aside from periods of boom, and also put aside based on strict life discipline.
Therefore if capital is a problem to source now, it will remain a challenge even in
the future, if something is not set aside today.

No matter what a man may acquire keeping of a fat purse is a necessity of life
and a condition for business expansion. Need, is an expression of lack (or want
of an essential item. As such every man and business have and will continue to
have need of men, materials and resources.

Therefore no present need is strong enough to jeopardize an entire future, hence


cultivating the habit of saving is right job for capital in a dangerous position.

3. POSSESSION

The Prophet said, “...tell me, what you have in your house.” The widow
responded honestly to Elisha, “your servant has nothing except a pot of oil.”

Every possession represents a spring and fountain from which business


opportunity is multiplied. It is customary in Africa culture to hold on to items of
value, even in the face of pressing demand for funding commercial activity. After
all, these items were acquired out of past endeavours, how would one create
future income to acquire more and better possession without converting
dominant valuables.

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Quite often, such possession creates barriers to future income because of the
security it has provided in the minds. Well-structured risk taking is a condition for
the success of every enterprise.

“You use what you have to get what you want, says the prophet”. And from the
says of oil, debts were repaid and fresh funds raised to begin a new life.

Holding on tightly to a valuable possession is a pessimist trap, sells all his


possessions to grab it. The story was told of a man, while wondering through a
field (the market place), found treasures had (possession) and brought that
particular field (invest into the enterprise). Soon the man became wealthy using
what he had to get what he wants.

4. INHERITANCE

It is common to hear people say, “I am working hard so I could leave, something


for my children.” Inheritance is any valuable derived from parents left behind or
handed over by lineage. Inheritance serve as major leap over the obstacle of
capital for many businesses giants.

“I hated all the things I had toiled for under the sun, because I must leave them to
the one who comes after me. And who knows whether he will be wise man or a
fool? Yet he will have control over all the work into which I have poured my effort
and skill under the sun,” says the Holy Book.

Every man must surely leave an inheritance for his children – whether assets or
liabilities. But a good man leaves as an inheritance for his children.

King Solomon was provided with substantial capital sum to commence the
construction of the Lord’s temple from valuable resources left behind by David
(his father). Inheritance from parents is am sure way of obtaining capital/fund for
business. An inheritance could be in the form of money, jewel, property,
machinery, equipment and goods. However, in whatever way it comes, it is a
valid way of raising capital for business purposes. The key to wisely convert such
item(s) to productive use is the factor.

Leverage to provide opportunity for business could come from any area,
recognising and taking advantages for business could come from any area,

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recognising and taking advantages of it is the skill to develop. Isaac, the
covenant son of Abraham needed not to seek up capital, because his father left
him an inheritance.

Any father that desires good life for his children will work wisely and leave them
an inheritance.

5. GIFT

Noble Job was a very rich man before misfortune struck upon his business
empire and for many years he was grounded-losing his capital, assets and
resources.

But later when his captivity was turned, all his brothers and sisters and all those
who had been his acquaintances before came and ate with him in his house.
They comforted and consoled him over the misfortune and each one gave him a
piece of money, and gold ring.

These gifts became capital sum for Job to kick-start his business again. And
within a short time he became wealthy again through his enterprise.

Overtime gifts are treated as free money to be spent loosely. Seldom is gift
considered as income. However, it could constitute a major way to rise start up,
working or expansion capital.

6. STOCK

There was an accountant who was travelling to a far country and left some of his
money for enterprise, till he returns. On his return, stewardship was rendered to
him to give accounts of gains made by trading.

Shares and stocks are major ways of obtaining money belonging to someone
else who is not part of the day to day running of the enterprise.

Those who have excess liquidity shares, (a portion of ownership) of an enterprise


asking the managers to use their funds to trade for profit. At the end of every
business season stewardship is rendered to fund providers, and both the
enterprise manager and fund providers divide the profit as appropriately agreed.

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That means it is not only shares offered on the stock market that could be used
to raise capital. Capital could be raised through private placement (arrangement).

Lack of faithful stewards, has hindered capital sourcing for many small scale
business owners; not their own faithfulness per se but that of those who have
gone ahead of them. They have bastardized the finance market such that
investors could no longer trust their hard earned resources to the hands of
private entrepreneurs. It is for this purpose of faithfulness that the stock market
(Nigerian Stock Exchange) was constituted to decently coordinate the activities
of stock sourcing and investments. The rate of default in faithfulness of private
enterprise is alarming; as such many investors are not keen on buying shares in
them.

In this category of capital source is joint venture – where two or more people join
money and resources to take advantage of a business opportunity.

Partnership is also recommended as a solid way of generating capital fund and


resources to start and expand and enterprise. This is pooling of resources
together to fund a venture.

7. Phase by Phase

Capital is like human wants, since it could not be fully satisfied, every enterprise
must of necessity built strength and resources to move from one phase to
another and expand its reach. “Little by little I will drive them out from before you,
until you have increased and are numerous enough to take possession of the
land, so says the Lord to the Israelites concerning the land of Canaan.

A most wise way to raise capital is to break down funding requirements into small
units or blocks or groups the resources required into portions that could be
acquired with whatever money is available per time – basing it on income or
other funding sources.

Life is a phase and men are in sizes, says Dr. David Oyedepo. No building drops
from heaven, construction commences with foundation, and various other stages,
until the roof placed.

Enterprise setup to fill a gap – catch perceived opportunity in the market, and
when this opportunity caught the effective utilised, by practical positioning.

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Funds seekers see opportunity but they are too small to catch it, this is why every
enterprise must build strength to take conscious advantage of present position
and at the same time be ready to go higher flight.

Life, business and success are stages and phases, while opportunity provides a
quantum leap to move swiftly from stages and phases, while opportunity provides
a quantum leap to move from stage to stage and/or jump from medium to top
level.

Opportunity is always available at different places all the time, as fish cannot be
for wanting in the sea, but every catch requires a net. That fishing net is a capital
The size and strength of a net determines where to paddle the boat to fish.

Shallow waters, rivers, high sea, and so on, represents market place. Business
opportunity and every enterprise must of necessity fish within the size of its
resources. No matter the opportunity available in the high sea for bounty catch;
an enterprise operating in the shallow water phase would only see it as a dream.

Enterprise should therefore learn to focus opportunities around them to catch and
continuously seek position to catch high one, progress to catch larger one, until it
becomes big successful.

The finishing net and resources (capital) available determines which level of the
market a new entrant may penetrate and fish. Phase by Phase and size by size
is business – every enterprise is clouded with opportunities on all sides.

Enterprise must apply the ways to build capital and firmly position themselves (on
a continuous) bases to catch bigger opportunities – in this manner, enduring
success is generated.

8. TRADE CREDIT

One of the alternative sources of finance available to a small entrepreneur aside,


credit facilities, is trade credit facilities afforded by credit sales from suppliers.
This is the cheapest form of finance which every business entrepreneur should
take advantage of. Trade credit provides a cast amount of short term finance.

Whilst a firm or entrepreneur tries as much as possible to keep its creditors to the
barest minimum, it should strive to take advantage of the credits facilities
provided by suppliers. But, it should be noted that too much delay in setting
suppliers for credit sales, may not augur well for the entrepreneur, because there

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is a possible risk of losing credit rating and being classified and labelled as “bad
debtor,” with its adverse effect of losing credit facilities in the future. As a matter
of necessity, a balance must be struck for continuous business survival.

In time of rising prices of goods, an entrepreneur may want to take advantage of


this development stockpile above the usual required, in an attempt to safeguard
against future prices increase and also save and utilize the cash to be paid for
the price differential, on other business operations.

It should be sounded here very clearly, that the fact that price is rising is not
sufficient to stockpile, there are other inherent cost implications to consider. For
instance, except it is on credit term, cash could be tied down unnecessarily in
the process and other areas of business operation may suffer. The idea robbing
Peter to pay Paul syndrome should be totally avoided.

9. Group Contributions

Another alternative source of finance which small entrepreneurs can take


advantage of it “group contributions”. Some firms or group of firms or
entrepreneurs come together to contribute a fixed amount of cash on a monthly
or weekly basis. Such interest-free pool of funds are given to one or more
members of the group as the need arises on rotational basis to finance business
operations.

10 Thrift and credit cooperative societies

Thrift and cooperative societies also provide alternative sources of finance to its
members at a very minimal interest rate. Entrepreneurs could form thrift and
credit cooperative societies, where they can be saving part of their excess or
surplus funds or net earnings according to their ability, periodically.

Such savings, do not only attract interest at the end of the financial period, it also
afford the contributing entrepreneurs to collect as much as two to three times
their total savings or contributions as loan to finance their business cash
requirements or operational needs as the need arises, at a minimal or little
interest charades.

Apart from this privilege, it also affords the entrepreneur opportunity to obtain
certain goods and services from the cooperative at a cheaper price than
obtainable in the open market. The gain from such purchase can used to finance
some aspects of business cash requirements.

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Co-operatives have been existing in our society for a long time. Organised and
formalised co-operative society was introduced by the colonial government by
encouraging voluntary formation of co-operative society among farmers, promote
agricultural production of export corps like cocoa, palm produce, groundnut and
cotton, by Nigerian co-operative Act of 6th February 1936.

Cooperative society

Members pool their individual plots of farmlands together, jointly supply


labour/loan, morden inputs, technical assistant etc. are jointly secured from
banks and government agencies at largely subsidized rate. The economic
contribution to members and national economy was very great, that successive
government encourage and promoted the growth and development of
cooperative society to sustain the economic development.

For the modern day small business entrepreneur, the veracity of the potency of
cooperative society or effort among this financially neglected business unit, is
very obvious given the present level of educational awareness and technological
advancement at our disposal. Cooperative thrift and credit society is a form of
business organisation owned and operated by its members. The primary aim is
to pool members’ resources together for the purpose of cooperative, production,
marketing, financing and/or catering for the financial, economic and social well-
being of its members.

Individual entrepreneur could voluntarily associate together on the basis of


equality for the promotion of the business and economic interest of themselves.
Such cooperative so formed could be a grass root finance mobilization and
disbursement group among others. This could involve a regular, periodic and
compulsory savings by members of part of their net earnings, excess or surplus
funds according to individual entrepreneur ability. The organisation is formed with
common objective of mobilising funds for members for members to assist them in
financing projects and cash or working capital needs to the tune of 2to 3 times of
total current individual savings or contributions.

Individual industrial entrepreneur especially but not necessarily in same or similar


lines of trade could come together to form cooperative thrift and credit society.

The major aim is to raise funds together and help one another in time of need.
They also provide members with soft loan without the burden of collateral
security at a very concessionary, minimal and affordable interest rate. Members’

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savings also attracts interest at the end of each period. It is a form of capital
accumulation in which each member set apart a portion of their current income or
savings for the raining day.

Success Factors

The pitfall usually associated with the conventional cooperative society could be
avoided by putting in pace some measures to eliminate such failure factors. A
committee of management usually democratically elected must be put in place to
direct the affairs of the society. Several committees such as loan committee,
audit committee, project monitoring committee, disciplinary committee etc. Must
also be put in place. Each member usually has equal opportunity to participate in
cooperative management as each of them have only one vote, in elections and
meetings, no matter the levels of shares pr contribution.

Cooperative and thrift society is owned by entrepreneurs, when registered has a


cooperate status. It has power to institute and defend actions as a legal entity. It
enjoys tax relief from the government. It is cheaper and costless to organize and
manage. It promotes saving habits and stimulates capital accumulation and
formation among members. It has better access to loans. Government and
financial institutions are usually willing and ready to give loans to cooperatives
than individual entrepreneur because such loans are relatively easy to administer
as a group to be shared among members with the risk.

Pitfalls

However, as important and desirable as this line to micro small entrepreneurs


may be, one must not be unmindful of some of the problems that may be
militating against its formation and success among small business entrepreneurs.
Some of these may include.

(i) Profit maximization is not usually a dominant motive in the most


cooperative and this could mintage against efficiency and innovation
(ii) Most cooperative do not encounter some initial problems resulting to
slow development of cooperation among members.
(iii) Lack of capital by individual members and their unwillingness to fund
loans.
(iv) It is not uncommon for members to regard loan from cooperative as
their own share of the national cake, thereby refusing or being reluctant
to pay back.

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(v) It may be very difficult for every member to understand the principles
and practices of cooperative societies.
(vi) Moreover, keeping of proper records may be very difficult
(vii) Sometimes the paid staff or officials may falsify the books to embezzle
the society’s funds where there is no proper or adequate control .There
could be management problems as a result of incompetent committees,
nepotism, dishonesty and widespread of corruption, lack of adequate
business entrepreneurial ability, mutual distrust, misuse of funds and
embezzlement.
(viii) There could also exist the problem of maintaining loyalty among
members especially at the initial stage of the formation of the union.

All these contribute directly or indirectly to the low development and high failure
rate of cooperative society in Nigeria.

Like every other joint venture, for cooperative to succeed among small business
entrepreneur there must be on the part of the members:

Financial and economic self discipline (ii) individual connection on its goal (iii)
total and unflinching commitment to overall common goals and objectives of the
society (iv) there must be mutual trust (v) they must also learn to value each
other and seek for opportunity to enhance the track record of the society at al
times.

There and then, the Expected mutual benefit of mutual cooperative effort
accruing from entrepreneurs owned cooperative thrift and credit society could be
placed at the finger tip of every small entrepreneur member at the time of dire
financial needs for his or her business development and growth.

11 Gratuity/pension

An entrepreneur can also tap the opportunity of injecting or investing his gratuity
or pension into the business as an alternative source of finance. This concerns
mostly those who are retirees collecting gratuities and monthly pension. This is a
good source of easy cash which a wise small business owner can put to good
use to actualising his business dream. It earns more valuable in the business
than otherwise in the bank savings account. Money kept in the bank is a non-
performing asset though an investment, such could be better utilized on a viable
idea or business for better returns.

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12. Expenses Accruals

Expenses accruals can also form a significant alternative of finance for a small
enterprise. This is a situation whereby payment for accrued or due expenses are
delayed as much as possible in order to utilize the funds/cash that could have
been used for this purpose, for more urgent pressing area of financial needs in
the business. The eventful financial benefit can partly be used to offset such
expenses. This in a way is using other people’s money (OPM), to finance
enterprise operations.

Wages and salary accruals could also be a very good alternative source of
finance to small entrepreneur. Payment could be delayed where possible by
changing wages payment procedure. For instance, daily payment of wages could
be changed to weekly payment, or weekly payment to monthly payment. Such
cash are used to finance part of the business operations. This provides
spontaneous interest free loan by the employee to the employer. Such funds are
used until the due of salary/wages payment.

13. Tax Accruals

Accruals of various tax such as PAYE income or profit tax etc could also be
utilized by a small entrepreneur as spontaneous alternative source of credit to
boost the working capital of the business it is not uncommon for a certain grace
ranging from 10 to 21 days to be given for remittance of various tax deductions to
appropriate tax authorities after deduction such funds are usually kept in the
firm’s account in the bank. The entrepreneur therefore can use such funds to
meet his current business cash needs while the grace period last. He can turn it
over and again, without prejudice or contravention of the law.

14 Depreciation Provisions

Moreover for the depreciation of fixed assets offer some credit facility a small
firm. These are expanses charges on the profit and loss, though they do not
involve movement of cash, nevertheless, the funds is still within the operational
system.

In addition, depreciation which is a provision for wear and tear of the fixed assets
of the enterprise are usually deducted from earnings before taxes are calculated.
It reduces the level of taxes payable, such that such savings are also available
for financing the business operation of the enterprise.

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15 Property/selling of assets

Some people think it’s a taboo to sell their personal properties. Well if the
purpose is right, it is a welcome idea. The property you sell today can easily be
doubled tomorrow, when your dream come true. In another way, assets sales to
relatives and friends can offer a neat and relatively simple alternative to either
loans or equity deals. Put simply, your company sell one or more assets to
someone you know or trust, he or she leases those assets back to the business
at a price that seems fair to both of you. Your company get one time infusion of
capital and presumably, better leasing terms than it would have received if it had
been dealing with an independent financier, best of all your capital structure
remains clean.

16. Partnership

An entrepreneur can enter into partnership with one or more persons, if you
alone cannot raise the needed capital for your business. But pray about it and be
very cautious about the personalities you want to join the business with. Let the
obligations, responsibilities and privileges of each partner be specifically defined
in Black and White (written) to avoid future conflicts. Meet legal practitioner to
assist in preparing the partnership deeed, as well as a professionally qualified
accountant to institute a strong veritable accounting system of business, to
prevent the possibility of fraud and possible mismanagement of funds in the
business future.

17. Leasing Option

Leasing is like long term rental. Leasing involves renting an asset (equipment,
office furniture and fittings etc) from the owner. Then you take possession and
right of use of the asset for an agreed rental payment over an agreed period of
time.

At the end of the lease you don’t automatically own the asset; you have an option
to buy it at its residual value. A lease required little or no money down and is an
alternative to purchasing such items as can usually write off the monthly lease
expenses. You can easily use leasing option to creatively jump start your
business.

18. Life insurance policy

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This is an instrument you can employ to raise loan from any financial institution
by using it as collateral. You can equally use it to raise short – term credit from
insurance company, that is, you can borrow against the value of your life
insurance.

Also some types of life insurance policies have cash value, which can be
borrowed at very low interest. You are not obligated to pay this money back but if
you don’t your policy payout is reduced by the amount borrowed.

19. Subscription

This is making people pay up-front for your products or service and then you
deliver later if you have a product or service and you know within a specific
period you can produce and deliver, then advertise a sample and ask those who
are interested to subscribe for any given amount up front. This way, you can get
many subscribers and in urn you could be described to be in business.

20. Equity

Approach your friends or relations tell at least three or four who you think have
money, tell them about the business proposal and request that they bring in
some money as co-investor with you. Give them enough information and
attractive offers, to be interested and invest, but not to be taken over by them.
The four person now become co-investors with you when business succeeds,
each get profit in proportion to its shares. Let’s suppose each investor contribute
N100,000 (One Hundred Thousand Naira). Each gets one share of the stock.
You also get one unit of share, though you contribute nothing but the business
expertise. The agreement is that developing the business is worth your own
share and you will be the managing Director.

21 Capital Market

Many small and medium scale enterprise are ignorant of the fact that they can
raise fund through capital market. The market is not only for the big companies,
small firms can benefit from it under the second tier market.

This option is available primarily to fast growing companies. This is when you
offer and sell equity interests in the company (e.g. share) through a stock
exchange or broker network. Going public involve some of regulatory compliance
and promotion.

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22. Daily contribution

This is an age long practice whereby an individual contribute certain amount of


money to a daily collector. At the end of the month, collector returned the sum
total to its owner (Contributor) with ten percent given back to the collector. The
advantage of this system is that the collector can give twice of what the
contributor, contributed with little or no interest charge. A small business owner
can exploit these benefits for the purpose of raising fund for their businesses.

23. Financial angels

Financial angels as the name implies are angel investors who can come to your
rescue when you are in need of a start-up capital financing. They are not banks
or financial institution but wealthy individuals who occasionally invests in new
companies and ideas. These people are all around you, however, some place
you can get them include, professional association, school alumnus, churches,
clubs.

25. Friends and relatives

If they believe in you and your idea, friends and relatives are sometimes willing to
fund you. Choose this route with care and ensure you execute a formal loan
document stating loan terms of repayment.

26. Approach money lenders

This is form of lending is very popular and vital to small business development. A
lender incurs risk and charges a corresponding rate of interests based on the
risk. The lender usually assesses a variety of factors such as the strength of your
business plan, and your personal credit history. In Nigeria a lot of people have
set up this type of business venture, the payback period does not always exist 12
months, and they receive collateral cars, C of Os, radio, TV etc.

27 Poverty eradication scheme

Federal government is collaborating in certain area, especially poverty


alleviation. You can kick start your business with these varying opportunities
NAPEP has to offer. Development centre are created in different parts of the
country where people are trained in different vocations like catering, hair

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dressing, shoe making, fashion designing, mechanics etc, they all fall under
Capacity Acquisition Programme (CAP).

28 Independent Fund Managers

It is called the SMEs manager Limited (SML), which is an investment advisory


established by African Capital Alliance, they are set up to promote small and
medium enterprises (SME) led investments in Nigeria also, available is New
partnership for Africa Development NEPAD, and the African project development
facility (APDF). They provide credit analysis support and assist small business in
raising long term credit support, usually in foreign exchange.

29 Venture Capital

The introduction of small and medium industries equity investment scheme


(SMIES) in 2001 heralded a new vista for the Nigerian venture capital industry.,
the scheme, an initiative of the bankers committee and the Central Bank of
Nigeria (CBN) aims at stimulating sustained economic growth in Nigeria by
providing a veritable source of long term funding for small and medium scale
enterprises (SMEs). It is recognised that these SMEs could be start-ups and
emerging growth companies that do not have access to the capital markets
companies embarking on new ventures that entails some investment risk.
Consequently, upon this, a new initiative known as the Nigerian (Venture Capital)
companies, especially SMIEIS based VC companies was formed

30 Multinationals:

Some multinationals have tried their own way to help the small-scale enterprises;
they empower the community through the support and promotion of micro and
small enterprises, helping people to create additional goods and services for
local markets. Today, hundreds of community based enterprises, micro-credit
schemes, Youth Business development programmes and neighbourhood
improvement schemes have benefited from these programmes. Such
programmes are traditionally implemented programmes are traditionally
implemented by NGO on your behalf of the oil companies, NGO like growing

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Business Foundation with core activities in the area of micro credit and capacity
building.

In conclusion, whichever alternative financial source is chosen by the


entrepreneur, there is always a need to ensure that such funds so obtained are
effectively and efficiently managed to ensure adequate liquidity for continuous
business survival.

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