March 11, 2024

How SME Business Scale Using Access to Shara’s Collateral-Free Business Loans


Running a business involves a considerable amount of risk. According to a report by the Small Business Administration, a staggering 33% of small businesses fail within their first year. Furthermore, an alarming 50% of businesses do not survive beyond five years. Only a mere 33% of businesses manage to operate beyond ten years.

Whether in Lagos, Kano, or Warri, the situation is similar. One of the biggest reasons businesses fail is the need for more financing.

Small businesses that rely on their owners’ purses for financing don’t have the capacity to face competition from bigger players in their markets and may miss out on expansion opportunities or struggle to navigate changes such as inflation.

Olabode, a versatile businessman involved in various ventures, from commodities like soybeans and cashews to electrification projects, needs constant cash flow to scale his businesses.

It is important for entrepreneurs like Olabode to seek funding options from different sources before they even need it to help them navigate changes, grow and stay competitive.

However, the lending landscape in Nigeria does not allow entrepreneurs like Olabode to enjoy easy access to financing. The processes are stressful; the requirements may be too much for simple, informal businesses. The opportunity may have passed by the time the funding from most financial institutions is ready.

Olabode encountered a common challenge – the need for working capital. He once needed quick and accessible financing to do some registration for a Rural Electrification Project. But he didn’t have enough money to secure the deal, and this business would have been a breakthrough business for him.

He was on the edge of losing this deal when his friend introduced him to Shara, a trade financing company that offers loans without collateral.

Shara offers a one-of-a-kind revolving line of credit, which means business owners who apply can borrow up to a certain amount of money anytime they want. The best part is that Olabode only pays interest on the money he uses out of the total amount available. This makes it easier for Olabode to manage the cash flow of his businesses and repay the loans on time without putting undue strain on the business’s finances.

Shara offers loans without requiring collateral, a significant relief for small businesses that may not have the necessary assets or collateral to secure loans from traditional banks. This makes it easier for businesses to access the funding they need to grow and expand their operations.

One spectacular thing Shara has done for Olabode is that it allows him to get good deals in good time. He has the confidence to pay anywhere he goes because he can easily access funding from Shara. This helps him secure deals at good prices, making more profit and continuing to delight his customers. The ripple effect is that customers and suppliers trust him not to disappoint with stocking at the right price or making timely payments.

This access to funding gives the business owner an advantage, as they can plan better, anticipate any change and react optimally wherever the opportunity takes them.

Godstime, CEO of A & J stores, also had a similar story about his experience with Shara. With nearly four decades of family history, A & J Stores found a new chapter of growth and ease through Shara Transaction Finance.

Before Shara came into the picture, A & J Stores faced challenges in stocking products and meeting business targets due to difficulties securing funds. Shara emerged as the solution that changed the game for them.

Godstime Chidoka chose Shara over regular banks because accessing finance came with no challenges or hidden charges. Traditional banks had complicated processes and took a long time, but Shara made it simple, giving access to funds in just a week and subsequently within a few seconds.

Shara has simplified the lending process, which is typically much more complicated and time-consuming with traditional banks. With Shara, businesses can apply for loans online, and the approval process is quick and efficient. This makes it easier for businesses to get the funding they need when they need it without getting bogged down in paperwork and bureaucracy.

Shara simplifies the business landscape by offering financing up to 10 million naira in a single borrowing cycle. It goes beyond a one-time deal, providing opportunities for repeat financing. Shara also assesses each business outlet independently, offering a credit boost to high-performing ventures. In essence, Shara streamlines financial support, making it more accessible and tailored to the unique needs of each business.

Their approach offers a real solution for small businesses that need financing. This helps businesses grow, creates jobs, promotes financial inclusion, and improves lives across Nigeria.

Merchants who are interested in accessing collateral-free loans for their businesses are required to provide:

  • * Minimum of 6-month Bank statements (Showing Verified revenue of a Minimum of N1 million per month)
  • * Government-issued ID card
  • * Bank Verification Number (BVN) – Nigeria only
  • * Active Phone number
  • * Visual: clear photo of merchant, shop, street view, inventory & items
  • * Merchant Home and Business address
  • * CAC Document (if the business is registered)

Visit the Shara website or call 09030486624 to get started.