Business
How To Obtain Business Capital From IFC
As a startup or budding entrepreneur, do you know how to obtain business capital from IFC?
For a start, IFC stands for the International Finance Corporation, which is a soft lending arm of the World Bank.
Part of its functions is to make available business capital at very friendly rates for IFC country-members.
This resolve is instructed by the fact that finance or capital is the live wire of any business.
From setup of office, buying and installing machinery, procuring raw materials to actual production and the payment of salaries, capital is essential to business. Thus, how to obtain business capital from IFC a key consideration.
READ ALSO: Microcredit Loans: Get Quick Cash For Business, School Fees, Family Socials
What then is the checklist for any firm which desires to obtain business capital from IFC?
To be eligible for IFC funding, a project must meet a number of criteria.
The project must:
-be located in a developing country that is a member of IFC; (Nigeria is a member)
-the project must be in the private sector;
-the project must be technically sound, and have good prospects of being profitable;
– such a project must be of benefit the local economy; and
-Be environmentally and socially sound, and environment friendly.
Investment Proposals
To obtain a business capital from IFC, there are no standard application forms, according to the corporation; however, a company or entrepreneur, foreign or domestic, seeking to establish a new venture or expand an existing enterprise could approach IFC directly.
“This is best done by reading how to apply for financing, and by submitting an investment proposal”, the IFC manual says, adding that “proposals could be submitted to IFC’s industry departments; regional departments at IFC headquarters in Washington; or the regional field office closest to the location of the proposed project”.
READ ALSO: How To Obtain The ECOWAS Travel Certificate Easily
Content of an investment proposal for the IFC
1. Brief description of project.
2. Sponsorship, management & technical assistance:
This should include history and business of sponsors, including financial information.
Proposed management arrangements and names and curricula vitae of managers should also be included as well as description of technical arrangements and other external assistance (management, production, marketing, finance, etc.).
3. Market & sales:
To obtain business capital from IFC, an investment proposal should show projected production volumes, unit prices, sales objectives, and market share of proposed venture.
Potential users of products and distribution channels to be used are to be indicated, same as present sources of supply for products.
Future competition and possibility that market may be satisfied by substitute products.
Other essentials are
4. Technical feasibility, manpower, raw material resources & environment:
5. Investment requirements, project financing, and returns
6. Government support & regulations, as well as
7. Timetable envisaged for project.
READ ALSO: 7 Mobile Phone Brands In Hot Demand In Nigeria 2024 & Why
Entrepreneurs are to note that:
“IFC does not lend directly to micro, small, and medium enterprises or individual entrepreneurs, but many of our investment clients are financial intermediaries that on-lend to smaller businesses”, the corporation informs
Whereas this adequate journalistic care have been taken in preparing this report, “How to obtain business capital from IFC”, as part of The Eagle Newsmedia’s effort to educate entrepreneurs, further information or clarification could be sought from the IFC at https://www.ifc.org/en/home