FCMB Supports SMEs with Funding

FCMB is providing support to Small and Medium Scale Enterprises (SMEs) through a funding programme worth N100 million.

The program, known as SME Asset Finance Facility, enables SMEs to obtain loans ranging from N5 million to N100 million for the purpose of purchasing equipment necessary for business growth and expansion.

The bank has already assisted more than 25,800 SMEs through this facility.

According to FCMB’s statement, they have offered loan guarantees worth approximately N45.9 billion to start-up SMEs with insufficient collateral coverage.

Furthermore, they have disbursed loans totaling over N637.08 billion to entrepreneurs.

The asset finance facility provides a repayment period of four years and is accessible to early-phase businesses operating for less than five years, as well as growing SMEs.

Its aim is to assist these businesses in financing the acquisition of new equipment or replacing depreciating assets in order to sustain their growth trajectory.

George Ogbonnaya, the Group Head of Business Banking at FCMB, acknowledged the potential of Nigerian SMEs to enhance productivity and contribute significantly to economic growth.

He, however, highlighted the main challenge faced by these SMEs, which he said was their limited ability to secure funds for acquiring modern equipment and other assets.

“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”, Ogbonnaya said.

“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”, he added.

According to the statement, in recognition of its support to SMEs in the country, FCMB was awarded “Best Bank with the Highest Impact on SMEs in Nigeria” for the second consecutive year by the Development Bank of Nigeria at its annual awards ceremony.