EFInA urges SMEs to explore funding beyond bank loans

EFInA has called on small and medium-sized enterprises (SMEs) to explore alternative sources of funding beyond traditional bank loans in order to support business growth. The Chief Executive Officer of Enhancing Financial Inclusion and Advancement, Foyinsolami Akinjayeju, emphasized during a panel discussion at the Caladium Lagos SME Bootcamp that entrepreneurs should identify financing options that align with their operational needs, growth ambitions, and repayment capacity.

Akinjayeju highlighted the importance of understanding one's productive capacity, identifying constraints, and determining the appropriate financing for specific needs. She introduced the acronym CAPITAL, which represents seven alternative funding options available to SMEs, including customer advances, asset leasing, supplier credit, invoice financing, third-party equity investments, awards and grants, and leveraged group financing through cooperative savings and credit arrangements.

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