Financial performance as collateral: First National Bank expands access to unsecured business finance
Access to finance remains one of the biggest challenges facing small and medium-sized enterprises (SMEs), often due to limited collateral and inadequate financial records. In response, First National Bank is making it easier for qualifying businesses to obtain funding through pre-approved unsecured loans and overdraft facilities.
First National Bank has reintroduced its unsecured business loan facility to assist eligible businesses in obtaining financing for working capital and expansion needs. Access to funding remains a significant obstacle for small and medium-sized enterprises (SMEs), often caused by limited collateral and poor financial records. Mark Achiampong, Head of Commercial and Business Banking at First National Bank, highlights the bank's initiative as part of its commitment to making finance more accessible, affordable, and convenient for businesses.
Achiampong explains that the pre-approved unsecured lending solution enables businesses to utilize their financial performance as collateral when applying for funding. The bank's assessment model evaluates a business's transactional behavior, financial performance, and credit risk profile to determine eligibility. Businesses that maintain accurate financial records, consistently bank their revenue, and manage their accounts effectively demonstrate their creditworthiness and increase their chances of securing financing.
This approach transforms strong financial performance into a form of collateral, aiding businesses in scaling and achieving success.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
