Union Bank SME Loans: Requirements and how to apply

Last Updated on November 28, 2023 by admin

Entrepreneur that intend to increase business’s cash flow,expand business as well as expand marketing strategy should consider getting a loan because without adequate finance your business will stay at a stand-still, or worse, collapse.

Business owners should measure the potential change in revenue that could come from expanding their space. They should consider loan costs and still make a profit.If you want to successfully grow your business, you’re going to have to step out of your comfort zone.

Union Bank Nigeria Plc has continued to support SME and empower women-led businesses through tailored products and services as they continues to develop sustainable products and services that promote enterprise and address poverty and financial inclusion.

You can also read:How to apply for UBA small and medium enterprise loan

Union Bank’s lending to small and medium enterprises (SMEs) in Nigeria with Cash Flow Lending known as Working capital to help meet your short term business needs.

There SME’s loan include: School Finance,Local Purchase Order,Invoice discounting Finance,Distributor Finance,Asset Finance,Term Loan,Overdraft,Intervention Funds,Short Term Finance and Cash Flow Lending.

If you are consider incorporating social media marketing strategies into your overall marketing campaign so as enable you engage with potential customers.You will definitely need money to carry out this tasks

Firstly let take a look at requirements and documents to get the above loan from Union bank.

Table of Contents

Cash Flow Lending

This type of loan is known as Working capital which help meet your short term business needs.It doesn’t required collateral with affordable interest rate.The Maximum tenor is 12 months with Maximum loan amount of N10M and it’s Open to registered and unregistered businesses

Documentation Required to get Union Bank cash Flow Lending

1.Copy of Corporate Affairs Commission (CAC) registration certificate
2.Invoice for goods to be purchased-if applicable
3.Executed Board resolution to borrow and detailing who will operate the account/ loan (for limited liability companies only)
4.Evidence of tenancy / ownership of business location (this includes copies of rent receipts, title documents etc.)

Read:How to apply for Wema Bank Business and Retail Loan

School Finance

This a short term loan that help to bridge finance for private nursery, primary and secondary schools.The loan doesn’t required collateral,the Minimum Amount of N200,000 and Maximum Amount of N5,000,000.The loan Tenor is 90 days maximum (with full repayment within 5 weeks of school resumption)

Documentation Required

1.Newsletter
2.Copy of CAC Registration
3.State Ministry of Education Approval
4.Posted dated cheque from another bank covering 130% of loan amount

Local Purchase Order

This short term funding for jobs issued by approved counter-parties. The Maximum amount is N50M customers are to make Equity Contribution of 30% with Maximum Tenor of 90 days

Documentation Required

1.Copy of Purchase Order which must be valid
2.Copy of Corporate Affairs Commission (CAC) registration certificate
3.Executed Board resolution to borrow and detailing who will operate the account/ loan (for limited liability companies only)
4.Domiciliation instruction (non – changeable without prior approval of credit 5.signatories) in favour of UBN must be in place. Account detail on the letter should be for the collection account

Invoice discounting Finance

This kind of loan is for business owner who needs Quick cash flow before their clients pays.It doesn’t required collateral with Maximum amount of N50M and the loan can’t exceed tenor of 90 days (in line with invoice payment date).

Documentation Required

1.Copy of Invoice which must be valid
2.Copy of Corporate Affairs Commission (CAC) registration certificate
3.Executed Board resolution to borrow and detailing who will operate the account/ loan (for limited liability companies only)
4.Domiciliation instruction (non – changeable without prior approval of credit 5.signatories) in favour of UBN must be in place. Account detail on the letter should be for the collection account

Short Term Finance

Union bank short term finance is designed to Finance SMEs for restocking of goods from specific suppliers.Borrower will need to bring in Equity Contribution of 30% with Maximum Tenor is 12 months with 90 days clean up cycle.Collateral required before you can get short term loan.

Documentation Required

1.Copy of Corporate Affairs Commission (CAC) registration certificate
2.Customer’s request letter
3.Account statements from other banks-if applicable
4.Valuation report of property to be pledged as collateral
Audited Financials (if applicable)
5.Other document will be required subject to what we are financing

Also read: Sterling bank business loan:Types and how to apply

Union Bank Term Loan

SME customers can access Long term finance to finance the expansion of a business from Union bank.The Loan amount is dependent on business cash flow with Maximum Tenor of 48 months, customers need to provide Collateral before they can access the loan

Documentation Required

1.Cashflow statement
2.Customer’s request letter
3.Audited Financials(if applicable)
4.Proforma Invoice of asset to be financed
5.Copy of Corporate Affairs Commission (CAC) registration certificate
Other documents will be required subject to what we are financing

Asset Finance

This product allows customers acquire assets such as operational vehicles, office equipment and generators. No collateral is required. Asset being financed is the collateral for the loan with Equity Contribution of 30% .The Loan amount is dependent on business cash flow it has Maximum Tenor of 48 months.

Documentation Required

Distributor Finance

This short term loan for SMEs that support whole value chain of suppliers and buyers.Its Open to registered and unregistered businesses that are distributors to recognized companies. when applying for this type of loan collateral is not required with Maximum loan amount of N5M. The Maximum tenor is 6 months.

Documentation Required

1.Copy of invoice for goods to be purchased
2.Account statement for the past 2 years-Mom and pop only
3.Copy of Corporate Affairs Commission (CAC) registration certificate-Enterprise and 4.Limited Liability Company only
4.Executed Board resolution to borrow and detailing who will operate the account/ loan (for limited liability companies only)
5.Evidence of tenancy / ownership of business location (this includes copies of rent receipts, title documents etc.)
6.Letter of introduction of the sub distributor by the key distributor-Sub distributor only
7.Letter of appointment as a key distributor by the Anchor-Key distributor only

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Meet Ogbeide Frank, popularly known as perere, a blogger who loves writing about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies

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