Jumia LendingPeer-to-Peer Lending as a Means of Propelling Startup Growth

Capital is the livewire of any business, especially for startups and established small businesses. Hence, they are always seeking for some additional funding that is too small for an angel investor to get a return for their effort. Banks also think it’s not worth their time.

That’s where peer-to-peer (P2P) lending is working to fill that lending gap. This model may be a solution for many small businesses that are struggling with just tapping smaller funding amounts.

Peer-to-peer lending involves borrowing money from your peers, including other business people and investors who are interested in relatively small financing amounts. It has been taken a notch higher with fintechs entering the fray. Small business owners and startups can now borrow millions of naira at flexible interest rates.

Why Consider Peer-to-Peer Lending
There are many reasons to consider a P2P loan, but the most compelling is that you do not require a collateral. Also, lower interest rates tend to be available, depending on your loan amount and loan term, because the peer-to-peer lenders operate with low overhead. You can repay the loan early and not have to contend with any prepayment penalties. Since it is an online lending environment, you’ll also enjoy faster approval and no paperwork except for a few online forms and a digital signature.

Jumia Lending
Peer-to-Peer Lending as a Means of Propelling Startup Growth

What To Look Out For
In Nigeria today, there are so many P2P lenders. Entrepreneurs have a potpourri of options to select from. You need to consider what this type of funding requires of you in order to optimise the benefits.

Some of the things that a good P2P lender must have include: easy access to working capital, quick registration, low-interest rate, collateral-free, and flexible repayments plan within 1-6 months. All these aforementioned are what makes Jumia Lending very unique. Jumia Lending is an initiative that gives you the opportunity to grow and expand your business by granting you access to fast and easy short-term working capital.

As an entrepreneur looking to expand the horizon of your business, you can sign up to sell on Jumia and after 6 months of uninterrupted sales on the platform, you will qualify to apply for Jumia Lending. In fact, before you even qualify for the loan, you will experience a significant increase in sales because you are leveraging on the wide reach of Jumia.

Using P2P Lending Strategically
With these benefits and considerations in mind, it’s important to look at using P2P lending in a strategic way.

Determine which P2P lender is best for you. Check reviews and get peer recommendations that relate their experiences with a P2P lender, from application to pay off.

Consider all other lending options that are available to you. Do a comparison to see which lending option offers you the best rate, terms, and amount for what you are looking to accomplish with your funds and the state of your business.

Don’t borrow money just to borrow it (or spend it just to spend it). Create a clear plan and disciplined approach to using the funds that will make the money go the distance. That means looking at the ways you can use the least amount possible through a lean startup strategy.

By gistyinka

About GYONLINENG. COM To Entertain and Celebrate African Dreams Both Home and Diaspora. Catch all the Latest trending News, Entertainment News, Celebrity Lifestyle and Society News on www.gyonlineng.com. Get All the Important and Interesting Gist & News in the Entertainment & Music Industry Daily into Your Mailbox Everyday at 10am (GMT + 1). You can subscribe to our list through the subscription box on the top bar of the site.. Follow Me Here Follow @gyonlineng</a

Leave a Reply

Your email address will not be published. Required fields are marked *

* Copy This Password *

* Type Or Paste Password Here *

This site uses Akismet to reduce spam. Learn how your comment data is processed.