Business financing for private companies in Nigeria comes in various forms, sometimes as corporate loans, and other times as equity capital. Depending on the stage of growth of the business is in, the structure of available business funding might vary. For example, companies at the early stages of development such as a startup might seek capital through seed fundraising from angel investors. Similarly, companies that are emerging and show signs of rapid growth are usually the interest of venture capitalists. Finally, companies that are established and have enjoyed many years of stable business growth usually seek additional financing through firms that provide growth capital in Nigeria.
If your business is looking to expand into new markets or grow internationally, growth capital funding can help your business achieve these goals. Here’s a look at what you should know about accessing growth capital in Nigeria.
Growth capital is a form of business funding given to mature and established businesses looking to scale their operations and expand that market. Growth capital in Nigeria is usually provided through private equity firms, business development companies, private wealth management firms, and similar investment institutions. Growth capital in Nigeria can be structured as equity which requires the business to relinquish a portion of company ownership. It can also be structured as a loan, known as a mezzanine debt, which can be paid back while maintaining full control of your business.
How Seeking Growth Capital in Nigeria Can Support Your Business
Growth capital can be a great way to finance business expansion and development without taking on bank loans which is is less flexible and can restrict cash flow. Growth financing can support your business to achieve various goals:
- Invest in equipment, software purchase, and new facilities
- Grow your team and upskill existing team
- Launch a new product or service
- Expand business reach internationally
- Fund mergers and acquisitions
When to Seek Growth Capital in Nigeria
Before a company is deemed eligible to receive growth capital from a private equity firm in Nigeria, its business model and future revenue prospects are evaluated to ensure it is ready to scale and can grow rapidly. Here is a list of business criteria that can help you determine if growth capital financing is presently the right fit for your business.
- 10% annual business revenue growth or more
- Scalable business model
- Established customer base
- High-growth industry/market sector
- Capable management
FBNQuest – Leading Provider of Growth Capital in Nigeria
FBNQuest is one of the leading private equity investment managers in Nigeria. Since its establishment in 2003, the firm has invested over N20 billion in over 70 private equity companies.
Our business financing solutions cater to a diverse clientele across all sectors of the economy, including some of the largest multinational corporations in Nigeria and across sub-Saharan Africa.
Want to learn more about how FBNQuest can provide growth capital financing for your business? Visit: fbnquest.com/our-solutions/