Business Loans and Financing Options for Entrepreneurs in Lebanon
As money gets tighter, minds get more creative. This week, Global Entrepreneurship Week Lebanon has brought together Lebanon’s brightest entrepreneurs and startups with those who have the means to fund them to listen, discuss, network and compete. The enduring struggle to find funding means that the choices for startups are ever evolving. Bnooki.com has brought together a list of funding options from Lebanese banks and others, especially tailored for Lebanese entrepreneurs.
1. Loans
If you can satisfy their conditions, loans can be a handy way to inject some cash into your business.
BCL Loans
The Lebanese bank BLC has a range of products tailor-made for Lebanese startups and SMEs (small and medium-sized enterprises) in any sector of the economy. These include:
ESFD-Micro credits program
Koudourat range of products
Kafalat Loans
Term Loans in collaboration with BDL
Eco Friend Loans
Collateral Free loans
The benefits of these loans include:
Attractive interest rates as low as 0% on Kafalat loans
Competitive fees and commissions
Grace periods
Flexible financing methods
Long term repayment periods
Assistance from the BLC's experts at all stages of your project
Online tracking of accounts through BLC eBank
Kafalat Loans
Kafalat is a Lebanese company that guarantees low interest Lebanese bank loans for startups and entrepreneurs in Lebanon in the sectors of Industry, Agriculture, Tourism, High Technology and Traditional Crafts. It processes loan applications and helps Lebanese entrepreneurs to access funding that would otherwise be difficult to reach. There are various tailored programmes to choose from, including:
Kafalat Basic
Kafalat Plus
Kafalat Innovative
Kafalat Startups and Innovative
Kafalat Agriculture
Kafalat Energy.
Faro Loans
Faro loans were set up by the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon (CCIA-BML) specifically to help Lebanese entrepreneurs and startups. They also help the SMEs find European or Mediterranean partners to work with (one of the conditions of the loans). The maximum amount of a loan is $20,000 and the maximum interest rate is 1%. In addition to financial support, support in business planning and feasibility studies is also offered.
2. Competitions
If your competitive side needs a little airing, why not try your luck in one of the competitions mentioned below? Both competitions are holding their finals as part of Global Entrepreneurship Week Lebanon.
Seedstars
The Lebanese leg of the Seedstars World Startup Competition will take place on November 20 and 21, 2014 and ties in with Banque du Liban Circular 331. It will be the arena for 50 Lebanese startups to pitch their bid for a place in the Seedstarts Final in Geneva, Switzerland to win $500, 000 investment.
Startup Cup Bader
The Bader Lebanon Startup Cup, in partnership with the Lebanese bank Bank Audi, ran its second final on November 19, 2014. Out of the applicants, 12 semi-finalist teams are given 4 months of coaching until their number is reduced to 7 and then finally to the top 3 winners. These teams share over LBP 100M in cash prizes and invaluable mentoring and coaching to enable them to take their business to the next level in Lebanon.
3. Venture Capitals
Another source of financing for Lebanese entrepreneurs are venture capitals. They provide funds for startup firms and small businesses who want money and support to grow their company without taking out a bank loan. Venture capitals buy a share in the company and in addition to support and advice, provide the necessary capital to grow the project. After a few years, the shares in the company are usually sold at a higher price. Because the venture capital firms are taking such a high risk, they usually get some say in company decisions and are entitled to a portion of the equity.
In Lebanon, the Berytech Fund, which covers between $100,000 and $1,200,000, and MEVP, which covers between $200,000 and $1,500,000 are available. Both firms focus on information, communication and technology (ICT), and MEVP also considers other areas.
4. Business Angels
An angel investor is an individual backer for small startups or entrepreneurs. Usually the party involved has a personal interest for seeing the new project succeed and therefore cash injections and/or expertise are usually provided early on, as opposed to venture capitalists who usually come in later on in the process. They differ from venture capitalists in that they are using their own money and therefore do not have to ensure that the investments make profits for others.
Bader’s initiative, the Lebanese Business Angel (LBA) puts potential investors (both individuals and institutions) in touch with startup projects that need funding to the amount of $50,000 to $500, 000. Any sectors are considered, provided that they are in the early stage of development and have the creative ability to reach a wide audience, both nationally and internationally.
5. Crowdfunding
Crowdfunding has been growing in popularity over the past few years due to the fact that anyone can get involved. Crowdfunders make the link between entrepreneurs and those interested in funding the project. The idea is that many interested come together and make small contributions which, when pooled together, provide sufficient resources. In Lebanon, Zoomal and Aflamnah are two platforms that are specialists in this area.
You can also check bnooki.com to compare business loans benefit from the team of experts that is available to help and provide you with the adequate personal loan advice free of charge.
