BENEFITS TO REGISTER BUSINESS NAME WITH CORPERATE AFFAIRS COMMISSION (CAC)
In Nigeria, a person can use a Business Name to apply for a loan, but there are important limitations compared to a registered company (Ltd/Gte).
HOW IT WORKS
A Business Name registered with the CAC is legally recognized, and many lenders accept it for small to medium loans, especially for MSMEs.
WHERE BUSINESS NAMES ARE COMMONLY ACCEPTED
You can apply for loans using a Business Name with:
1. Microfinance Banks
2. Cooperative societies
3. Fintech lenders (e.g.,
4. Paystack Capital,
5. Flutterwave Capital,
6. FairMoney Business, etc.)
7. BOI MSME programs (in some cases)
8. State government empowerment / SME schemes
9. SMEDAN–linked loans
10. Commercial banks (limited amounts, usually with collateral or guarantors)
REQUIREMENTS YOU’LL LIKELY NEED
1. CAC Business Name registration certificate
2. TIN (Tax Identification Number)
3. Business bank account (in the business name)
4. Bank statements (usually 6–12 months)
5. Valid ID of the owner
6. Utility bill
7. Business plan or cashflow (for bigger loans)
8. Collateral or guarantor (for traditional banks)
KEY LIMITATIONS TO NOTE
Loans are usually smaller amounts
The owner is personally liable for repayment
Some government or international funding requires a Limited Liability Company
Business credibility is lower compared to Ltd companies
WHEN A BUSINESS NAME IS ENOUGH
Small retail businesses
Trading, artisans, services
Startups needing ₦50,000 – ₦5,000,000 (depending on lender)
WHEN YOU SHOULD UPGRADE TO A LIMITED COMPANY
1. If you want large loans
2. If you plan to work with banks, NGOs, or international grants
3. If you want better credibility and risk separation
Contact us today for your CAC registration.
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