Small and Medium Scale Enterprises (SMEs) are now accessing from N5 million to N100 million loan to purchase equipment needed to grow and expand their businesses under the First City Monument Bank (FCMB) SME Asset Finance Facility.
So far, over 25,800 SMEs have accessed this facility.
FCMB has 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 four years repayment option, the 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.
Mr George Ogbonnaya, Group Head of Business Banking at FCMB, said that SMEs in Nigeria have what it takes to be more productive and contribute more to economic growth.
However, he noted that they face a major challenge, which is the capacity to raise funds to acquire modern equipment and other assets.
He stated: “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.