Small and medium-sized enterprises (SMEs) have invariably played an important role in the Nigerian economy, contributing significantly to the growth of employment, economy and exports.
A survey by the Nigeria Bureau of Statistics (NBS) found that SMEs contribute over 48% of the national gross domestic product (GDP) and account for around 96% of businesses, which in turn creates around 84% of jobs. in the 36 states of Nigeria. and the Federal Capital Territory (FCT).
Despite the significant contribution of SMEs to the Nigerian economy, challenges still abound that hamper the growth and development of the sector and one of the most prevalent is limited access to capital and finance, a factor that has resulted in the scarcity. of several start-ups. .
To meet this challenge, Stanbic IBTC Holdings Plc, a member of the Standard Bank Group, recently introduced a short-term loan facility aimed at increasing working capital to finance various business projects and meet the urgent cash flow needs of small and medium-sized businesses. (SME).
The lending solution, according to the lender, allows SMEs to take out loans with ease and convenience and also offers exclusive benefits including repayment flexibility and limited unsecured documentation, while the temporary overdraft provides financial credits to clients. new and existing within 24 hours, with a maximum loan repayment term of 90 days.
The bank also said the SME temporary overdraft was created to ensure that SMEs are not forced to surrender the loan immediately, as the repayment plan is flexible and based on the company’s cash flow.
This, he explained, creates some form of stability for businesses, which will ultimately strengthen the financial sector and improve the Nigerian economy in general.
According to Stanbic IBTC, the short-term SME loan application requires minimal documentation, which allows SMEs to easily access funds for necessary costs and other business activities, unlike ordinary loans which usually require heavy documentation. , including the loan object documents and guarantees.
Speaking on the suitability of the product for SMEs, Ayodele Ojosipe, Head of Business Banking Services, Stanbic IBTC Bank, pointed out that the product was created for businesses that need financial assistance for business transactions as well than their daily business transactions.
“One of the major issues for SMEs is access to funds that help their business grow and because at Stanbic IBTC we understand how important funds are to the success of any business we have offered. this offer to mitigate the consequences of the pandemic, “he explained.