Asset Finance: Hope rises as FCMB backs N100m to SMEs to expand businesses
By Sodiq Adelakun
For Small and Medium Scale Enterprises (SMEs), hope rises as The First City Monument Bank (FCMB) is offering the access to get N5 million to N100 million loans to finance the purchase equipment needed to grow and expand their businesses.
The bank is doing this through its SME Asset Finance Facility even as over 25,800 SMEs have accessed this facility so far.
FCMB in real monetary value had provided about N45.9 billion loan guarantee support to SMEs with inadequate collateral coverage in the start-up stage and has disbursed over N637.08 billion in loans to entrepreneurs.
With a four years repayment option, this asset finance facility is open to early-phase businesses of less than five years and growing SMEs to help fund new equipment addition or replace depreciating assets to sustain growth trajectory.
However, The Group Head of Business Banking at FCMB, George Ogbonnaya, said that SMEs in Nigeria have what it takes to be more productive and contribute more to economic growth. He, however, said they face a major challenge, the capacity to raise funds to acquire modern equipment and other assets.
“FCMB understands the challenges SMEs face in securing funding and is committed to providing them with the financial support they need to grow and succeed.”
The FCMB Asset Finance facility is conveniently structured to provide a viable option for SMEs to acquire business assets at an affordable rate. So far, the uptake by SMEs has been impressive, and it is helping them to succeed.
In recognition of its support to SMEs in the country, FCMB was awarded “Best Bank with the Highest Impact on SMEs in Nigeria” for the second consecutive year by the Development Bank of Nigeria (DBN) at its annual awards ceremony. This prestigious award is a testament to FCMB’s ongoing efforts to provide SMEs with the financing and support they need to grow and succeed.
In 2021, the bank won nine national and international awards and recognitions across various SMEs segment, including the “Best SME Bank in Africa” and “Best SME Bank in Nigeria” at the Asian Banker Middle East and Africa Regional Awards for the second consecutive year.
