Product Overview
Working Capital Loans provide flexible funding to cover your day-to-day business operations, manage cash flow gaps, and seize growth opportunities. Whether you need funds for inventory, payroll, rent, utilities, or other short-term operational expenses, this loan helps keep your business running smoothly while you wait for receivables or manage seasonal fluctuations.
⚠️ Eligibility Requirements
Before applying, ensure your business meets these minimum requirements:
✅ Location: Operating in Lagos State (mandatory)
✅ Monthly Turnover: Between ₦1 million and ₦100 million
✅ Operating History: At least 2 years in business
✅ Business Registration: Legally registered business entity (Sole Proprietorship, Partnership, or Corporation)
✅ Business Banking: Dedicated business account with 6+ months history
✅ Industry: Operating in an approved industry sector (see below)
✅ Financial Separation: Personal and business finances must be separate
⚠️ Important: Kuda Business loans are only available to businesses operating in Lagos State. If your business operates outside Lagos State, you are not eligible for our business loan products at this time.
Approved Industries
We provide Working Capital Loans to businesses in the following sectors:
Primary Target Markets:
- Accommodation and Food Service Activities
- Hotels and accommodation services
- Restaurants and food services
- Cafes and bars
- Wholesale and Retail Trade
- Wholesale trade (except motor vehicles)
- Retail trade (stores, mini-marts, convenience stores)
Secondary Target Markets:
- Information and Communication
- Agriculture, Forestry and Fishing
- Administrative and Support Service Activities
- Manufacturing (ISIC Section 3) - Food, beverages, textiles, and apparel
Note: If your industry is not listed above, please contact [email protected] to discuss eligibility.
How It Works
1. Identify Your Working Capital Need - Determine how much funding you need and what it's for (inventory, payroll, rent, etc.)
2. Assess Your Cash Flow - Review your cash flow cycle, receivables, and seasonal patterns to determine the right loan amount and tenor
3. Apply for Financing - Email [email protected] with your business information, financial statements, and working capital needs
4. We Assess Your Application - We review your business financials, cash flow patterns, and repayment capacity
5. Working Capital Analysis - We analyze your current assets, liabilities, cash conversion cycle, and working capital requirements
6. If Approved, We Provide Funding - Funds are disbursed to your Kuda Business account
7. Use Funds for Operations - Use the funds for approved business purposes (inventory, payroll, rent, utilities, etc.)
8. Repay Over Time - Make monthly installments or repayments aligned with your cash flow cycle
9. Maintain Business Operations - Keep your business running smoothly while managing cash flow gaps
Ready to bridge your working capital gap? Email [email protected] and let's get started!
Who's It For?
Working Capital Loans are ideal for:
- Retailers needing funds to purchase inventory, especially during peak seasons
- Restaurants and Hospitality businesses managing cash flow between slow and busy periods
- Manufacturers requiring funds for raw materials while waiting for customer payments
- Service Providers covering operational expenses during project-based payment cycles
- Wholesalers managing inventory purchases and payment terms with suppliers
- Growing Businesses scaling operations and needing funds to support expansion
- Seasonal Businesses managing cash flow during off-peak periods
Key Requirements:
- Business must operate in Lagos State
- Monthly turnover between ₦1m - ₦100m
- Clear working capital need (inventory, payroll, rent, utilities, etc.)
- Ability to demonstrate repayment capacity through cash flow
- Established business with predictable revenue patterns
The Nitty-Gritty
Loan Details
Loan Amount:
- Typically aligned with your monthly turnover and working capital needs
- Minimum and maximum amounts based on:
- Your monthly/annual turnover
- Working capital gap analysis
- Cash flow capacity
- Business risk profile
*Contact [email protected] for current loan amount ranges*
Tenor (Repayment Period):
- Typically 3-12 months, depending on:
- Your cash flow cycle
- Business needs and preferences
- Seasonal patterns
- Working capital requirements
- Can be aligned with your cash conversion cycle
Use of Funds:
Working capital loans can be used for:
- ✅ Inventory Purchase: Stock up on products for sale
- ✅ Payroll: Cover employee salaries and wages
- ✅ Rent and Utilities: Pay rent, electricity, water, and other utilities
- ✅ Short-Term Operational Expenses: Cover day-to-day business operations
- ✅ Accounts Payable: Pay suppliers and vendors
- ✅ Marketing and Growth: Invest in marketing and business expansion
- ✅ Cash Flow Management: Bridge gaps between receivables and payables
Repayment:
- Monthly installments (fixed or variable, depending on terms)
- Can be aligned with your cash flow cycle
- Automatic deduction from your Kuda Business account (preferred)
- Flexible repayment options based on your business needs
Working Capital Assessment
We assess your working capital needs based on:
Current Assets vs. Current Liabilities:
- Analysis of your current assets (cash, inventory, receivables)
- Comparison with current liabilities (payables, short-term debt)
- Calculation of working capital gap
Cash Conversion Cycle:
- Time from purchasing inventory to receiving payment
- Days sales outstanding (DSO)
- Days payable outstanding (DPO)
- Inventory turnover period
Seasonal Fluctuations:
- Peak and off-peak periods
- Revenue patterns throughout the year
- Working capital needs during different seasons
Growth Projections:
- Business expansion plans
- Expected revenue growth
- Increased working capital requirements for growth
Cash Flow Patterns:
- Historical cash flow analysis
- Projected cash flow based on business plans
- Repayment capacity assessment
Frequently Asked Questions
Q: How much can I borrow?
A: Loan amounts are typically aligned with your monthly turnover and working capital needs. Contact [email protected] for current loan amount ranges.
Q: What can I use the funds for?
A: Working capital loans can be used for inventory, payroll, rent, utilities, and other short-term operational expenses. Funds must be used for legitimate business purposes.
Q: How long is the repayment period?
A: Typically 3-12 months, depending on your cash flow cycle and business needs. Can be aligned with your cash conversion cycle.
Q: Do I need collateral?
A: Typically unsecured, but collateral may be required depending on loan amount, risk assessment, and your business profile.
Q: How quickly can I get the funds?
A: Typically 5-10 business days from complete application submission, with funding within 24 hours of approval and acceptance.
Q: Can I repay early?
A: Yes, early repayment terms vary. Discuss with [email protected] for specific terms.
Q: What happens if I can't make a payment?
A: Contact us immediately. Late payment fees may apply, and we'll work with you to find a solution.
Q: Can I get multiple working capital loans?
A: Each application is assessed individually. Contact [email protected] to discuss multiple facilities.
Q: How do you assess my working capital needs?
A: We analyze your current assets vs. liabilities, cash conversion cycle, seasonal patterns, and cash flow projections to determine appropriate funding.