It is interesting to note that most forward looking businesses are increasingly accessing Facilities from their Bankers as they are innovating and providing the necessary leadership, and getting financial guidance from Advisors on the best strategies to upscale their businesses
By Nwokolo Charles Ike
It is generally believed and expressed in various fora that Micro, Small and medium-sized Enterprises (MSME) lack Access to Finance and Funding to boost production activities, business expansion and achieve increased profitability etc. Amid the various Commercial and other Financial Institutions in the Country which act as intermediaries between the haves (Depositors) and the have-nots (Borrowers), they are not getting required support to source short term des or long term Loans to finance their operational needs. Lack of Access may be viewed from two perspectives, availability and affordability of funds.
Availability
It is not debatable that Commercial Banks abound in most towns and cities in the country to carry out their statutory obligations to their customers. They are in business to make profit. They make profit in giving Loans to their deserving customers. They compete among themselves to give short term or long term Loans to their customers. They have over times, developed many products and packages and promoting them to boost their lending portfolios and encourage consumer credits. Why are the MSMEs not taking advantage of their Customer-Bankers relationships to obtain Facilities for their business activities?
Affordability
It is said that finance is not affordable because of high cost of supply. Every source of Finance has a cost and cost differs in terms of maturity or monetary cost. The Interest Rate is high and above single Digit, thus limiting the capacity of business world, especially MSMEs to secure Facilities.
It is interesting to note that most forward looking businesses are increasingly accessing Facilities from Bankers as they are innovating and providing the necessary leadership and getting financial guidance from Advisors on the best strategies to upscale their businesses.
They are taking measures to identify, evaluate and select viable investment projects with the help of their financial advisors on the best and least cost of financing in order to achieve planned revenue goals. They are as well developing and implementing business strategies, Financial Planning, Budgeting and Forecasting to drive business growth, improve financial health and stability, and thereby boosting confidence and reliability as trusted partners with their bankers.
•Nwokolo Charles is a Consultant and can be reached at cinwokolo@gmail.com,08030599774.






































