You can have loan multiple loan applications at the same time

Growing a business sustainably requires more and more capital and this is not just about equity, every business needs to loan to grow and expand. However, a common challenge faced by many small businesses is the size of the loan that can be accessed from a lender. More often, lenders restrict small business owners to a small amount, thereby limiting the growth prospect of the business. In some cases, the loan is granted as a personal loan to the owner of the business, with his/her properties as collateral.

Guess what, there are ways to overcome this challenge. There is no restriction on the number of times you can apply for a loan and there is no harm in making multiple applications, so you can multiply loans of small amounts to meet your business need. While paying down on your current loan, you can apply for another one, either with the same lender or another loan provider that you find best suited to your need at the time. One important thing to note is that a business can access multiple loans at the same time. For instance, if you have a short-term loan or an overdraft which you use to finance your working capital, you do not need to use such loan for your expansion.

Use different loans to meet different needs of your business

As you know, working capital is the that fund that you use to keep your business going on a day to day, such as the money you use in buying raw materials for production or paying your suppliers and workers. Investing such money in buying new equipment or renting another shop to expand to a new promising location may not be the best option, as such investments require longer term loans, since you would not immediately recover the money, you spent on an expansion project. Rather, you should apply for another loan to fund the expansion, ensuring that the terms, especially the tenor of the loan fits well to the likely time of realising your investment in the expansion project. There is nothing wrong in accessing multiple loans at the same time, either from same lender or different lenders.

Don’t unduly restrict your business growth, you can get another loan anytime soon

Sometimes, business owners are concerned that they may not be able to get another loan because they just paid off a loan. It’s just the fear of the unknown. If anything, just paying off a loan, qualifies you well for another loan. There is no better proof that you have a good character and the ability to pay back the loan. Smart business owners put in applications for loans early before they need the funds. It gives you the opportunity to compare and make the best choice, especially when you have nairaCompare by your side. So, break out of the fear and make as much applications as you may need and access as much loans as you desire, just ensure that you make the best use of the funds and compare the terms to be sure you are always making the best decision.