Your ideas matter big time, because without viable ideas, there can be no business. With all the money and no solid business concept and plan, you'd virtually be pouring money down the drain.

Having said this, it's important to acknowledge the central role of capital in oiling the engine of economic growth. Poverty that is so pervasive in our third world can, to a large measure, be traced to the paucity of finance to support new business ideas or help expand existing ones. No doubt, the persistent cries of business people and in particular the MSME operators over the dearth of accessible and affordable credit in our financial system cannot be simply dismissed as the empty noise of people who lack ideas. The weak productive base of the economy traces to our failure to prop up the small businesses with meaningful credit backing. A terrifying picture that leaves you wondering by what magic you can finance your business idea, no doubt. Well, don't give up yet. Living is about overcoming and matching on. That is why we have combed the system to identify ten possible opportunities that you may still target for the funding you need for your business. Check these:

1. Commercial Loans from Universal Banks
A difficult option for most small businesses but, no doubt, still clearly the most extensive source. Our universal banks fight shy of lending to MSMEs for reasons that are largely traceable the weaknesses of the latter. Your challenge is to package your business and the proposal you put forward so professionally as to make it sufficiently attractive. That way, this option will become a real possibility for you.

Banks may provide working capital support or term lending that could be short, medium or long term. Trade finance, LPO finance and contract finance are some of the other funding options. Most banks have an SME unit or a subsidiary company to carter to SMEs. Though the SMEEIS scheme has fallen far short of expectation in effectiveness, it remains an important window.

Which banks should you approach? You should start where you have your account. Certain banks have however shown a stronger disposition towards funding small businesses, in some cases for certain preferred sectors. Union Bank has a known track record in agric sector finance. Access Bank currently has a scheme targeted at empowering women. Oceanic Bank has stood out in supporting small businesses in recent years. First Bank too has recorded significant support for the MSME sector. If you make further enquiries, you should be able to find the strength of each bank to decide which ones to target for the funding your need.

The tough issues remain high interest rate and collateral. Your cash flow projections must support the cost of bank credit and you need to have an acceptable security.

Don't rush to banks unprepared, that is the key. Get your business in orderly shape if it's already running and whether new or old, get the future trajectory and supportive paper work in tidy shape. Rehearse your presentation to be sure you come across convincingly on what you are up to.

2. Finance Companies
Their strength lies in their smaller size and consequent ability to be more flexible. Besides, not subject to the same level of supervisory control as the banks, they may be more accommodating in working within your circumstances.

A lot of funding support still comes to businesses from this sector. However, their limited ability to mobilise funds means two things: shorter term financing and even higher costs. Not a good sources for money to start out, but could bail you out of transactional funding gaps. They are good at funding LPO's or meeting other working capital needs, for instance. Some can fund your take-off assets under an asset-financing scheme.

The caution again is to do a thorough evaluation to be sure you can effectively use and service any borrowing. These are not sources for patient funding, so you may not get a breathing space if you fall into arrears and that could be very disorganising. You may choose to deal with those that are subsidiaries of big companies for more decency. Wema Securities and Finance Plc would fall into that category.

3. Micro Finance Institutions
The MFI's, now phasing out community banks, will matter to you if your funding requirement is in the micro range. MFI's are designed to meet the needs of small borrowers, who generally may not possess strong collateral. Like with other lenders though, you have a responsibility to prove that your business idea is viable and that you can deliver on results if supported.

4. Development Banks
Your faith in development banks (government-owned credit institutions) may be shaky on account of years of under-performance, but recent strides by the Bank of Industry (BOI) do raise some hope. The Nigerian Agricultural Co-operative and Rural Development Bank Limited (NACRDB) and Nigerian Export-Import Bank (NEXIM) are the other key devbanks. Ideally, these banks, for their specialised areas, should be your most-supportive partners, given that the profit motive is not their primary driver. They are meant to help start off or grow your business and usually provide the best terms to enable you archive that purpose.

The BOI provides working capital finance, medium and long term loans, equity finance, lease finance, and loan guarantees for small, medium and large business projects. With its visible new lease of life, it has extended its scope to include the service sector (it previously accommodated manufacturing sector requests). And substantially higher numbers of disbursements are being recorded. If you have a well-packaged business idea, the BOI may just be the right place to begin.

For agric and import-expert finance projects, you should obviously be talking to NACRDB and NEXIM respectively.

5. Leasing Companies
These provide very specialised, yet valuable financing support: they can fund your equipment (industrial plant and machinery, medical equipment, ice-cream machine, etc) and other fixed asset (furniture, vehicles, office tools, etc) requirements. For some businesses, this is the crux of the financial outlay.

Leasing avails you the use of an asset without paying the purchase cost: you pay only periodic rentals which should be lighter on your cash flow. Ownership resides with the leasing company while use is in your hands, with only relatively small monthly or quarterly payment of rentals. If you desire to own ultimately, this can be built in.

Besides the cash flow benefit which includes flexibility (you structure rentals to align with your cash flow pattern), leases obviate the need for collateral (the assets are collateral) and remove the burden of equipment obsolescence from you (that's the owner's headache).

Many leasing companies are in active operation: C & I Leasing Plc, FB Asset Management Ltd, Holt Leasing, etc. You may choose to enquire through the Equipment Leasing Association of Nigeria (Ltd/GTE) with offices at Gbagada.

6. Venture Capitalists and Angel Investors
These groups are very important elsewhere (USA, for example) but have hardly stamped any authority in our system. Both are individuals or groups that primarily focus on funding and helping nurture new business ideas, particularly for small and medium beginners. By design, they are risk-takers, believing in the returns potential of your business idea and ready to support you in the expectation that they will partake in the benefits. So, usually they provide equity funding, meaning they are part-owners. This eliminates the burden of interest cost and the time-line pressure that comes with commercial borrowing.

Where do you find them? Anybody can be an angel investor, including people you know, though active investors also exist. You can start with wealthy people you know (not necessarily personally), but you won't get far unless armed with an irresistible proposal. The need for a strong proposal also applies with Venture Capital companies. Some listed as currently licensed by the Securities and Exchange Commission (regulatory body) are: Amalgamated Capital Funds Ltd, DVCF Oil & Gas Plc, Fidelity Union Sec. Limited, IBTC Ventures Limited and Intercontinental Capital Markets Ltd.

7. Non-Profits
These are basically the NGO's, some of which are extremely committed to their cause and are making substantial impact in their niche areas. Most operate at the micro level, obviously for paucity of funds.

Non-profits understandably offer the most convenient credit terms (low interest, lower burden of collateral and more bearable repayment terms). The reason is that profit is not their primary objective and often they secure grants for disbursement. Growing Business Foundation is a known player in this sector.

What are your chances with this group? Only if the amount required is within their limit, usually very micro. Two, they usually have target groups, meaning you have to be qualified on that count. Your starting point may be at the Nigerian Network of Non-governmental Organisations (NNNGO), Ogunlana Drive, Lagos, where you may get further details of members that offer funding support.

8. International Finance Agencies
You may not be aware, but this group is regularly financing business ventures in our economy, either directly or through local banks.

The IFC, for instance, is directly supporting various large, medium and even relatively small businesses in our economy. Its products list includes: loans, equity and quasi-equity, syndicated loans, standby financing, loan and bond guarantees, partial credit guarantees in foreign and local currency, etc. No doubt that the standard of work to position your request for series attention from this organisation has to be really high.

The United States Agency for International Development (USAID) has also shown some interest in MSME funding in Nigeria and currently has a $5 million small business project fund managed by Fidelity Bank. Another fund for $10 million, committed to housing development, is managed by Zenith Bank.

9. Mortgage Institutions
Don't forget this group, particularly if the business is in the housing sector, which is really their business. Investing in property is good business and when you need funding for such business, mortgage banks are there to pull you through.

Mortgage finance usually comes with fairly extended facility tenor, though rates remain unusually high in our financial system. Key players include Union Homes Savings and Loans Plc, Federal Mortgage Bank and Aso Saving and Loans. Besides, virtually all the banks today own mortgage finance subsidiaries.

10. Government Agencies
This is obviously insignificant, but worth a mention. At the micro value level, NAPED for the Federal Government and similar agencies (so-called poverty eradication programmes) provide some level of business funding. Because these are government programmes that constitute more political propaganda than real value, their impact remains remote. That is not to say that some fortunate individual have not received credit or grants from such agencies. So, don't rule them out, it may be worth your time to check what they have on offer when you need help.

11. Business or Trade Credit
Never to be overlooked, funding can be available to you business in an intangible form, if you permit this usage. Properly negotiating for favourable payment terms (say a month's credit) may be all the funding you need. If you headache is working capital, can your supplier get paid after you've sold? Always explore opportunities for trade credit as this can relieve the cash flow pressure on your business.

12. Friends, Family and Self
Deliberately kept for the last in this listing, but this may prove your strongest source of possible financing for your business. First and surest is from yourself. This simply means having a forward-looking programme that entails a period of build-up of seed-capital. If you want to save yourself some agony, you will start early to work with a clear objective and set target. Capital formation requires discipline and sacrifice, but that additionally prepares you for the resources management mentality your business requires.

Your friends and family sources are viable options, but much depends on the image you've built over time and the specific proposal you present in this case. Just remember that everybody has numerous demands for every kobo they own, so you have a duty to justify the sacrifice you're demanding of them.

Well, if you don't get from any of these sources, you'd probably need to send a petition to the National Assembly, but let's hope you won't have to.

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