Enhancing Financial Innovation and Access (EFInA) has encouraged small and medium-sized enterprises (SMEs) in Nigeria to explore alternative sources of funding instead of relying solely on traditional bank loans to finance their businesses.
The organisation noted that limited access to affordable credit remains one of the major obstacles facing small businesses, particularly those struggling to meet the strict requirements and collateral demands of commercial banks.
It urged entrepreneurs to consider other financing options, including grants, equity investment, venture capital, angel investors, crowdfunding and development finance programmes.
According to EFInA, expanding access to different funding channels could help businesses secure the capital needed to grow, create jobs and contribute more significantly to the Nigerian economy.
The organisation also emphasised the importance of financial literacy, proper business documentation and transparent financial records, noting that these factors can improve an enterprise’s chances of attracting investors and securing funding.
It further encouraged SMEs to strengthen their business models and develop clear growth strategies that would make them more attractive to potential financiers.
The call comes as many Nigerian entrepreneurs continue to grapple with high borrowing costs, inflation, rising operating expenses and difficulties accessing formal credit.
EFInA maintained that a more inclusive financing environment would enable small businesses to overcome funding barriers, expand operations and support economic development.
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