AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
An approved bank loan is only paid out once the conditions precedent in the offer letter are met: you sign and return the offer, fees and insurance are paid, and any security (a lien, a vehicle registration, a mortgage or deed of assignment) is documented or perfected. Digital salary loans can land within minutes because they have almost no conditions; Access Bank's PayDay page, for example, says funds are credited straight away, though it can take up to 24 hours (as at Oct 2026). Secured loans take longer because perfection depends on third parties such as land registries.
Approval and disbursement are two different events. Approval means the bank's credit committee has said yes on stated terms. Disbursement, also called drawdown, happens only when everything the offer letter lists as a condition precedent has been done. Many borrowers lose days, or weeks, because they assume the first means the second.
What a condition precedent is
A condition precedent (often shortened to CP) is something that must happen before the bank is obliged to release funds. Offer letters usually group them under a heading such as "Conditions precedent to drawdown". Until each one is satisfied, or the bank formally waives it, the money stays with the bank even though the loan is approved.
There may also be conditions subsequent: things you must do after drawdown, such as delivering an original title document within a set period. Missing one of those can be a default, so note them too.
The usual conditions precedent
| Condition | What it involves | Who controls the timing |
|---|---|---|
| Signed offer letter | You accept the terms in writing, often within a deadline | You |
| Fees paid | Management fee and any commitment fee; often deducted at drawdown | You and the bank |
| Insurance in place | Credit life cover, plus asset insurance for vehicles or equipment | Insurer |
| Security documents | Letter of lien or set-off, guarantee, chattel or mortgage documents | You, guarantors, lawyers |
| Perfection of security | Registration of the bank's interest, for example a mortgage at the land registry | Registries and lawyers |
| Employer confirmation | For salary loans: confirmation of employment and salary domiciliation | Your employer |
| Corporate approvals | For businesses: board resolution, CAC documents, personal guarantee of a director | Directors |
Access Bank's product pages illustrate the range. Its Personal Loan asks for an application form, employer confirmation form, evidence of confirmation of employment, IDs, BVN, credit checks and a letter of lien or set-off. Its Vehicle Finance asks business borrowers for audited or management accounts, statements from other banks, CAC documents, a board resolution and a personal guarantee of a director (as at Oct 2026).
Perfection: the slowest step
Perfection means making the bank's security interest legally effective against everyone, usually by registering it. For land, it runs through state-level processes, including the consents the state requires and registration at the state land registry, and the time this takes depends on the state. For movable assets such as vehicles and equipment, banks register their interest under the framework of the Secured Transactions in Movable Assets Act 2017. Searches, certified true copies and perfection are charged at cost recovery under the CBN Guide to Charges (effective 1 January 2020), so the bank should pass on the actual cost, not a mark-up.
Some banks release funds before perfection is complete if you sign an undertaking and the bank's lawyers are satisfied the process has started. That is a decision for the bank, so ask early whether it is possible for your loan.
How long it usually takes
Banks do not publish service levels for every product, so treat these as patterns rather than promises:
- Digital salary advances and payday loans: minutes to a day, because the security is your salary flow and the checks are automated. Access Bank's PayDay page says funds are credited straight away, though it can take up to 24 hours.
- Unsecured personal loans: usually days, depending on employer confirmation.
- Vehicle and asset finance: often paid directly to the dealer once the invoice, insurance and registration in the bank's favour are sorted.
- Mortgage-backed or land-secured loans: weeks or longer, driven by valuation, legal search and perfection.
For how long the approval step itself takes, see how long bank loan approval takes.
Steps to get your money released faster
- Ask for the full CP list the day the offer letter arrives and tick each one off.
- Return the signed offer within the deadline; an expired offer may need fresh approval.
- Get guarantors and your employer to sign early; they are the most common delay.
- Ask whether any CP can be moved to a condition subsequent.
- Confirm how fees and insurance will be collected, so the net amount you receive is not a surprise.
- Ask for written confirmation of the drawdown date once the last CP is met.
After disbursement
Check the credit to your account against the offer: principal, less fees and insurance if deducted. Note the first repayment date. Your new loan will be reported to the credit bureaus, so keep repayments on time; see how the credit bureaus work. The CBN Guide also sets a 7-day grace period on banks before penal charges apply to a missed instalment.
Where Pryme fits
Loans on Spaces work differently from a bank term loan. A limit is offered based on how your account is run, the agreement is shown in full in the app, and nothing is drawn until you accept; the credit, from Solid Allianze MFB, is spent with Spaces merchants. See Loans on Spaces.
Questions people ask
My bank loan is approved but not disbursed. Why?
Usually because a condition precedent in the offer letter is outstanding: an unsigned offer, insurance, a guarantor's signature, employer confirmation or perfection of security. Ask the bank which item is open.
What does conditions precedent mean on an offer letter?
Things that must be done before the bank releases the loan, such as signing the offer, paying fees and completing security documents.
How long does disbursement take after approval in Nigeria?
Digital salary loans can be credited the same day. Secured loans can take weeks because perfection of security depends on registries. Ask your bank for its expected date.
Can a bank deduct fees from my loan before paying it?
Many banks deduct the management fee and insurance at drawdown. The CBN Guide to Charges caps the management fee at 1% of principal and total lending fees at 2%.
Sources
- CBN: Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (effective 1 January 2020) · accessed Oct 2026
- Access Bank: PayDay Loan · accessed Oct 2026
- Access Bank: Personal Loan · accessed Oct 2026
- Access Bank: Vehicle Finance · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.