LendRoam: Enterprise Scale-Up B Loan Plan
The Enterprise Scale-Up B Loan Plan under LendRoam is designed as a growth accelerator for medium-sized enterprises (SMEs) that are preparing to transition into larger-scale operations. Many businesses reach a point where internal capital and early revenue streams are no longer sufficient to sustain new opportunities. They may need to scale production capacity, enter regional or international markets, hire specialized staff, or invest in infrastructure such as warehouses, technology, or logistics systems.
This loan product is positioned as a mid-tier funding solution—larger in scope than micro or small business loans, but still structured and flexible enough for businesses that are not yet multinational corporations. The “B” designation indicates its place in the second tier of enterprise growth loans, sitting above the “A” plan (which supports earlier-stage scale-ups) and below larger capital-intensive financing options such as the National Rollout or Mega Project loans.
Key objectives of this loan include:
Providing affordable and predictable financing to enable enterprises to seize growth opportunities.
Supporting job creation by giving businesses capital to expand their workforce.
Increasing business competitiveness by funding technology upgrades, equipment, and advanced systems.
Encouraging regional expansion into new markets while maintaining financial stability.
The loan is denominated in United States Dollars (USD), which makes it attractive for companies engaged in import/export, cross-border trade, or global partnerships. By operating in USD, LendRoam ensures that enterprises can benchmark their financing against international standards.
2. Eligibility Criteria
To ensure financial stability and responsible borrowing, the Enterprise Scale-Up B Loan Plan is available only to businesses that meet specific criteria.
General Eligibility
Business Registration: Must be a legally registered company with verifiable incorporation documents.
Operational Track Record: Minimum of 3 years of active operations with evidence of revenue growth.
Annual Revenue Threshold: Should generate between USD 500,000 – USD 5 million annually.
Credit History: A satisfactory repayment history with banks, suppliers, or credit institutions.
Ownership & Governance: Transparent ownership structure, governance practices, and audited financial statements.
Collateral & Guarantees
Businesses may need to pledge assets (such as equipment, receivables, or property) as collateral.
In some cases, a corporate guarantee from directors or holding companies may be required.
Priority Sectors
Although the loan is open to all industries, preference is often given to:
Manufacturing & Processing.
Technology & IT Services.
Renewable Energy.
Logistics & Supply Chain.
Export-driven Agriculture.
3. Loan Structure and Terms
The Enterprise Scale-Up B Loan is carefully structured to balance flexibility with lender protection.
Loan Amount
Minimum: USD 2,000,000
Maximum: USD 8,000,000
Repayment Framework
Per Installment Charge: ~2.1% of outstanding principal per repayment cycle.
Installment Interval: 30 days (monthly repayment).
Total Installments: 54 months (about 4.5 years).
Estimated Tenor: 54 months = ~4.5 years.
Fees & Charges
Application Fixed Charge: USD 2,500 (processing fee).
Application Percentage Charge: 1.5% of the approved loan amount.
Delay Penalty: 10-day grace period, after which penalties apply:
Fixed: USD 2,500 per missed installment.
Percentage: 2% monthly on overdue amounts.
Interest Model
The loan operates under a declining balance model, ensuring that as the outstanding principal reduces, the interest charged per installment also declines. This keeps repayments manageable for borrowers.
4. Detailed Repayment Analysis
Let’s examine a sample repayment for a company borrowing USD 4,000,000 under this loan plan.
Application Charges:
Fixed = $2,500
Percentage (1.5% of $4,000,000) = $60,000
Total upfront fees = $62,500
Installment Charges:
With ~2.1% monthly, the first installment = $84,000 (on $4,000,000).
Each subsequent installment decreases slightly as the principal reduces.Estimated Total Repayment (over 54 months): ~$5.2 million including interest and fees.
This repayment structure ensures predictability, allowing businesses to plan cash flows effectively.
5. Use Cases / Practical Scenarios
The Enterprise Scale-Up B Loan can be applied in several high-impact business scenarios:
Manufacturing Expansion:
A food-processing company adds a new production line to increase output by 60%.
Financing used to purchase new machinery and expand factory space.
Technology Company Growth:
An IT services firm expands into three additional markets in West Africa.
Loan covers recruitment, infrastructure, and cloud technology.
Export Agriculture:
A cocoa exporter installs advanced storage facilities and logistics hubs.
Financing stabilizes export capacity and reduces post-harvest losses.
Renewable Energy Deployment:
A solar company scales operations to deliver mini-grid projects in rural communities.
Loan covers procurement of solar panels, batteries, and workforce training.
6. Benefits
Borrowers gain significant advantages with this plan:
Access to Large-Scale Financing without losing equity.
Predictable Costs via structured monthly installments.
Long Tenor (54 months), allowing businesses time to generate revenue from investments.
Support for International Trade due to USD denomination.
Enhanced Credibility with investors and suppliers when backed by LendRoam financing.
7. Risks & Considerations
Currency Risk: If a borrower earns primarily in local currency, USD repayment could pose risks.
Market Fluctuations: Expansion projects might take longer to yield returns.
Repayment Burden: Businesses with seasonal revenue must carefully manage monthly obligations.
Collateral Risks: Default may result in loss of pledged assets.
8. Regulatory and Compliance Aspects
LendRoam ensures compliance with:
Central Bank lending regulations of the borrower’s jurisdiction.
International Anti-Money Laundering (AML) standards.
Corporate Governance norms for transparency.
Borrowers must provide:
Annual audited financial statements.
Tax compliance certificates.
Proof of adherence to labor and environmental standards.
9. Case Study / Hypothetical Example
Company: TechLink Solutions Ltd.
Industry: IT Services
Loan Amount: $5,000,000Purpose: Expanding into 4 new African countries.
Usage: Infrastructure, 200 new staff, marketing, and partnerships.
Impact:
Revenue doubled from $3M → $6.5M within 3 years.
Staff strength increased from 120 → 450.
Loan repaid successfully within tenor while company valuation rose by 300%.
10. Conclusion
The Enterprise Scale-Up B Loan Plan is an ideal financing tool for ambitious, medium-sized enterprises seeking to break into larger markets. Its balance of loan size, tenor, and predictable costs ensures that businesses can strategically scale without immediate liquidity strain.
By supporting enterprises at this critical stage of growth, LendRoam positions itself not only as a lender, but as a partner in regional and global competitiveness.
