A lender will evaluate the risk involved in each loan and use that information to determine the loan’s structure, which will determine factors like loan amount, lender type (collaborative or solo), interest rates, and repayment pattern. Corporate lending entails various types of financial products and services provided by financial institutions to corporations to meet their funding requirements. Here are some common types of corporate lending:

Asset-based lending:

Asset-based lending refers to the provision of loans to businesses that are backed by an asset or form of collateral, such as a company’s machinery, real estate, or intellectual property (secured loans). Businesses can get loans from financial institutions backed by collateral through asset-based lending, a type of secured lending. In this type of corporate lending, the amount of the loan is typically based on the value of the assets pledge

Structured Finance:

Structured finance is a sophisticated type of funding that is typically used on a scale that is too big for a conventional bond or loan instrument. Securitization, the process of packaging non-tradable assets and turning them into financial security, is widely utilised in structured finance. It can then be sold to institutional investors after that

Cash Flow Lending:

Cash flow lending: this kind of funding is available through the commercial paper market, where big institutions lend money to well-established businesses on an unsecured basis. Most of the time, it’s to allow them to satisfy urgent cash needs for things like paying employees, maintaining firm liquidity, or funding infrastructure. Since these are unsecured loans, only very solid, long-standing businesses with stellar credit histories typically receive them. A lower likelihood of the issuer missing payments or defaulting on credit is implied by a higher credit rating.

Where to find corporate lending

Corporate lending is offered through different sources. Below is where to find corporate lending in Nigeria.

1. Commercial Banks: Many Nigerian commercial banks provide corporate loan services. You can look at the corporate financing solutions offered by these banks.
2. Industry groups and networks: In Nigeria, industry groups and networks may offer resources and information about corporate loans and financing solutions tailored to companies or sectors.
3. Government Programmes: Examine the policies and plans put out by the government to assist corporate finance and lending to enterprises. These could consist of financial aid, grants, and loan programmes intended to promote economic growth and entrepreneurship.
4. Online Platforms: Corporate lending solutions are provided by fintech (financial technology) companies and online lending platforms in Nigeria.
5. Microfinance Banks: Some microfinance banks in Nigeria may also provide corporate lending services, especially for small and medium-sized enterprises (SMEs) and businesses in need of smaller loans.
6. Development Finance Institutions (DFIs): DFIs provide funding and credit facilities to support corporate projects and initiatives in various sectors.

Conclusion

When exploring corporate lending options, it’s important to carefully review the terms and conditions. Citihoms Finance Company offers business loans to business owners at a competitive interest rate with a tenure of up to 48 months. CitiHomes Finance Company prides itself on its efficient disbursement process to make payments as and when due.  Enjoy an excellent loan service with Citihoms Finance company today, For more information, contact us at