Question: What types of loans are offered by FirstBank to SMEs?
Ans: FirstBank offers several loan products to SMEs which include but are not limited to; Contract Finance, Working Capital Finance, Agricultural Finance, Key Distributorship Finance, Term Loans, Overdrafts etc.
Question: Does FirstBank require collateral deposits before lending to SMEs?
Ans: It depends on the type of loan facility in question. Some types of loan require collateral, while some do not. The main focus is on cash flow and the ability to repay the loan.
Question: What are the prices of products offered to SMEs by FirstBank? How are SME products from the Bank priced?
Ans: FirstBank SME products are priced quite competitively and change with market realities. Concessions are also granted to SMEs where there is adequate business justification.
Question: Does FirstBank finance unregistered companies?
Ans: Unregistered companies are not recognized entities by law, therefore FirstBank is constrained in lending to them.
Question: Is FirstBank’s lending preference skewed toward SMEs operating in specific industries?
Ans: No. FirstBank lends to all sectors of the economy except for illegal sectors and the sectors on the exception list.
Question: What is the maximum loan value that an entrepreneur has access to?
Ans: This is subject to a number of factors which include the business cash flow, purpose of the loan etc.
Question: Does FirstBank provide Agricultural finance?
Ans: Yes, FirstBank offers many products focused on agriculture ranging from production to processing and even storage. Click here for more
Question: Does FirstBank give moratorium on facilities?
Ans: Yes, FirstBank offers moratorium on facilities. This however, depends on the business justification and transaction dynamics.
Question: Will an applicant be required to make an equity contribution when applying for a loan?
Ans: It depends on the type of loan. Not all loans require equity contribution.
Question: Is it compulsory for an applicant to have an existing account with FirstBank before applying for a loan?
Ans: Yes, every SME is required to have or open an account with FirstBank before applying for a loan facility.
Question: Can an entrepreneur have more than one loan facility running simultaneously?
Ans: Yes, as long as the cash flow can accommodate all exposures.