Heritage Bank Business Loan – How to get a loan from Heritage Bank? Are you in any way short of funds to increase or start up a business and you don’t know how to go about it worry no more?
This article is all you need to know about getting a loan from Heritage Bank and how to apply.
Heritage Bank of HB is a leading commercial bank in Nigeria – with roots in the old Societe Generale Bank (Nigeria). The bank is headquartered in Victoria Island, Lagos, and maintains a network of branches throughout the country.
Heritage Bank has an excellent reputation for customer service. It offers a range of digital, retail, commercial, corporate, and investment banking services.
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Contents
Funding and types of business loans available through Heritage Bank
Overdraft
With this business congestion tool, Heritage Bank can provide financing to companies that need to manage temporary working capital shortages. The interest rate is competitive. Entrepreneurs, manufacturers, and many other types of companies can benefit from this product.
Finance Lease
This Heritage Bank product makes it easier to purchase new (not special) assets. Here the bank will acquire the assets for you – while you pay every month. Examples of things you can get by financial leasing include cars, trucks, generators, electronics, and more.
Local Purchase Order (LPO) Finance
Heritage Bank’s local purchase order financing product allows companies to finance confirmed orders. The order must be verified and issued by a reputable organization. LPO can only be used to purchase local items (no services).
You also cannot use this function for import. Heritage Bank will be able to finance up to 70% of the order amount – with a maximum validity period of 90 days.
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Trade Services
Through Heritage Bank’s International Services Division, companies have access to a variety of business financing solutions. These solutions include import and export financing. Specific products and services offered include letters of credit, collection fees, and bank guarantees.
Qualifying for a Heritage Bank business loan?
Heritage Bank can help finance many different businesses – involved in almost all sectors of the economy.
The most important qualification requirement for a business loan for Heritage Bank is a profitable business. If your business is not profitable or cannot generate enough revenue to justify the amount of debt required – it is difficult for Heritage Bank to approve financing. As a result, your business must show a steady monthly income – where you can actually repay any borrowed money.
Another important requirement is the credit history of your business. A good credit history indicates that you have met your debt obligations in the past and, as a result, are likely to meet all of your obligations in the future.
If you need to borrow a lot of money – Heritage Bank will probably only provide you with a secured loan. In other words, you will need a guarantee. When a loan is needed, credit history can often be less important.
Other standard business lending criteria may (but not always) 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
Only registered companies can use business credit products, such as business finance. Therefore, if your company is not yet registered with CAC – Heritage Bank, it cannot provide financing.
It can also be difficult for registered companies with little or no business history to obtain business finance – especially on an uncertain basis.
An alternative for companies that are not directly entitled to a business loan is to apply for a personal loan product as a salary advance. You can use personal loan products for business purposes. Another good option is to apply for SukFin finance – which can provide you with other financing solutions.
How to apply for a Heritage Bank business loan
To apply for a business loan from Heritage Bank, you can visit the bank’s branch, call its 24-hour contact center or send it an e-mail.
If you already know what specific financial product you want, you can ask for it and apply immediately. If you are unsure of the exact credit line you need, one of Heritage Bank’s customer service staff should be able to advise you appropriately.
Regardless of the financial product required, all applications will be assessed according to Heritage Bank’s lending guidelines. The business history of your business, the financial condition and the purpose of the loan – everything will be considered before deciding on a loan.
After approval of the financing, you will receive an offer letter. This offer letter will detail all the conditions you have to meet – before the funds can be paid out.
A checklist of important documentation commonly asked for 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)
Note. Each finance product will have its own set of criteria. Therefore, Heritage Bank can ask you for more or less than the above.
Frequently Ask Questions
What is the interest rate charged on a Heritage Bank loan?
Applicable interest rates vary. Single-digit interest rate products are offered, as well as more expensive products.
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How much can I borrow from Heritage Bank?
Heritage Bank can meet the funding requirements of both big and large companies. The amount that you can borrow is mostly limited by the size of your business.
How long do I have to pay back a Heritage Bank loan?
Heritage Bank loan repayment periods differ. Both short and long-term funding can be provided.
Does Heritage Bank require collateral?
Heritage Bank does require some form of collateral — for most of its loan products. Where collateral is not required, a personal guarantor will usually be needed.
Acceptable forms of collateral can include:
- 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)
How long will it take before receiving funds from Heritage Bank?
Heritage Bank must go through an internal evaluation process before the funds can be disbursed. Although the processes are almost the same for all products – each individual loan instrument has its own unique process. The approval period therefore varies. It is often likely that small loan applications will be approved more quickly.
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