How To Get A Business Loan In Nigeria Without Collateral

If you need a collateral-free business loan in Nigeria, this guide explains how to get one from Kuda, including eligibility, interest rate, and repayment tips.

Kuda Business
Nov 12th, 2025 Rejoice Obike

Introduction

Running a business can be tough. You could get an order, do the work, and send an invoice but still have to wait endlessly to get paid.

And wIth your cash flow held up by unpaid invoices and your business needs getting more urgent, you might attempt to take a loan.

Oftentimes in this scenario, lenders ask for collateral which you probably don’t have. It’s frustrating and can feel like a dead end.

But what if those unpaid invoices could get you the loan you need from Kuda Business?

This guide will tell you how that works, and you won’t have to think about collateral.

What’s a collateral-free business loan?

It’s a loan that doesn’t require you to pledge any kind of asset (like land, a vehicle, or a building) as security to get it.

For many businesses in Nigeria, the biggest headache is cash flow. Customers sometimes take weeks, even longer, to pay for orders. A collateral-free loan from Kuda Business could keep your cash flow going while you wait to get paid.

What loans does Kuda Business offer?

Kuda Business offers two financing options at the moment:

  • Invoice financing: This is an advance on your unpaid invoices. It helps you free up working capital while you’re waiting for your customers to pay.
  • Purchase order (PO) financing: If you don’t have enough money to fulfil an order, Kuda Business can fund the order upfront so that you can deliver and get paid later.

How to apply for a Kuda Business loan

1. Download the Kuda Business app on your app store and open an account.

2. Request a loan by sending an email to sales@kuda.com.

3. Kuda Business will review your invoices or purchase orders to confirm that they’re real.

4. Once your loan request is approved, Kuda Business will send you a loan offer showing the loan amount, interest rate, and repayment plan.

5. Once you accept, you’ll get the loan in your Kuda Business account within a few days.

Loan repayments are made monthly, based on a plan that works with your cash flow.

What you need to be eligible for a Kuda Business loan

Being a CAC-registered business, particularly a limited company or enterprise, isn’t mandatory but it could help you get a Kuda Business loan.

How much can you borrow from Kuda Business?

You can apply to borrow between ₦1,000,000 and ₦5,000,000. The actual amount you get will depend on the state of your business and the information you provide.

The repayment time is usually between 6 and 12 months, so repayment is generally convenient.

What is the interest rate and repayment terms?

The annual interest rate at Kuda Business ranges from 30% to 35%, depending on the state of your business. There are no hidden charges.

How to repay a Kuda Business loan

Your first repayment is due one month after you get the loan, and you’ll keep making monthly repayments until you’ve repaid the entire loan with interest.

The Kuda Business loan repayment plan is quite flexible, working with your business’s cash flow without putting you under pressure.

How is Kuda Business different from traditional loan providers in Nigeria?

Most traditional banks focus on what you own. Their first question is often about collateral, asking if you have land, a car, or a house to pledge? For many small businesses, this is a major roadblock. The process of getting a loan can also take a lot of time and paperwork.

Kuda Business loans focus on what you’re owed in the form of unpaid invoices or purchase orders instead of asking you for collateral.

Why Kuda Business could decline your loan application

These are a few reasons why you might not get a loan from Kuda Business.

1. Limited or inconsistent transaction history: Your transaction history shows how active your business is. Without proof of cash flow, Kuda Business might not be able to support you with a loan.

2. Low business cash flow: Your cash flow tells Kuda Business how well your business manages money coming in and going out. If there’s not enough steady income to cover repayments, Kuda Business might see your business as high-risk and hold off on approving your loan.

3. Irregular inflow or failed debit transactions: Frequent failed payments or long gaps between deposits can raise red flags. Kuda Business looks for consistency, regular inflows and smooth transactions show your business is stable and dependable.

4. Poor credit score or incomplete documentation: A low credit score or missing paperwork can make it hard for Kuda Business to assess your reliability. Keeping your credit record healthy and your business documents up to date boosts your chances of getting approved.

How to improve your chances of getting a Kuda Business loan

1. Use your Kuda Business account regularly.

2. Maintain a steady cash flow to show that your business is positively active.

3. Avoid failed transactions and overdrafts.

4. Repay loans early to get larger loan amounts.

Common questions about Kuda Business loans

1. What types of loans does Kuda Business offer?

Kuda Business offers invoice financing and purchase order financing.

2. Do I need collateral to borrow from Kuda Business?

No, you don’t. Kuda Business gives loans based on verified invoices or purchase orders.

3. How long is the loan approval process?

Usually, you’ll get a loan within a few days if you’re eligible.

4. What’s the repayment period?

It’s flexible, usually between 6 to 12 months depending on your loan agreement.

5. Can I track the status of my Kuda Business loan application?

Yes, you can. You’ll get real-time updates about your Kuda Business loan application on the Kuda Business app.

Conclusion

Collateral-free business loans from Kuda Business make funding your business easier and quicker. Just use your invoices or purchase orders to get the capital you need.