Covenant Capital is an initiative of the church to provide financial & advisory assistance to entrepreneurs in the church to empower them to achieve their God-given financial potential and contribute in practical ways to their immediate community through job creation, financial empowerment and role modelling.

Covenant Capital represents a growth of the original Covenant Microfinance scheme to include larger projects and provide support structures for fledgling business in the local community. Covenant Capital is available to all members of Covenant Christian Centre at 4 levels: Microfinance, Business Training, Project Finance and Business Advisory Service.

OBJECTIVE OF THE SCHEME

Covenant Capital is not a bank or finance house as it has not and does not seek to apply as one, at least in the short term. It is not a credit union or savings institution and therefore does not seek to mobilise savings from individuals. It is also not a charity giving donations to individuals seeking to start businesses. The beneficiaries of the scheme are expected to contribute meaningfully in their communities by providing a service and eventually jobs for a few other people as their business expand.

Covenant Capital expects to assist by providing start-up financing in whole or in part based on need assessment and encouraging the acquisition of leadership and managerial skills to ensure the long-term survival of the enterprise. Where possible, Covenant Capital may be able to assist in the expansion from micro to small enterprise provided, however, that under no circumstance will Covenant Capital participate in the equity of the business.

OPERATING STRUCTURE

Covenant Capital is structured along 4 major lines as shown below. The Administration Unit is responsible for coordinating the activities of the Group – processing applications, scheduling and facilitating meetings and interviews and keeping the records of the Group.

Each of the sub-units has a different focus although with the same objective as described above.

a. Microfinance

This sub-unit aims to meet the financing needs of those whose business idea will not get any attention from the bank due to their small nature and the difficulty in articulating the plan in standard financial terms. The current limit on microfinance loans is N500,000 for a maximum tenor of 6 months. Microfinance loans can be given repeatedly as the business grows but each loan must be fully repaid before a new one is given. The only security for the loan is the guarantee provided by two other persons, who may be members of church or non-members.

b. Project Finance

This sub-unit focuses on those whose ideas should ordinarily fall into a regular bank financing space but who for some reason are still unbankable e.g. perhaps the collateral they have is inadequate or perhaps the cost of the finance is more than the project can bear. Covenant Capital will partner with them towards achieving their project subject to our funding capacity at the time and their ability to meet community impact targets that are set for the business. Projects will be financed on the strength of their cash flows as normal bank credits and the loan should not exceed 12 months in duration.
The minimum loan amount is 1 million and the maximum at this time is N2 million.

c. Business Advisory Services

This unit was setup to provide consulting and advisory services to church members in their businesses. We recognize that some individuals do not require cash but rather advice on how to resolve management and operational issues in their business. The unit objective is to provide this advice by drawing on the skills and experience of various church members in the first instance and if required, hiring expert/professional consultants to provide the service. The cost of such professionals will be borne by Covenant Capital.

CLICK HERE IF YOU NEED BUSINESS ADVISORY

d. Training services

This unit will focus on equipping the entrepreneurs to manage their businesses correctly by assisting in teaching them requisite skills especially understanding accounts, budgeting and leadership skills for growing their businesses. Covenant Capital will retain the services of an accounting practitioner to keep the books of accounts of the micro businesses financed until such a time as the business can afford to do this on their own. The businesses may be required to contribute to the retainer to build the discipline of service payments.

To take advantage of any of our services, kindly send an email to covenantcms@gmail.com,

info@covenant-capital.org or call 08160000238