Temporary working capital

Stanbic IBTC SME Loans: Enabling National Growth


SMEs play a central role in the growth of nations. They greatly contribute to job creation and economic development. According to Price Waterhouse Coopers, Nigerian SMEs contribute 48% of the national GDP, represent 96% of businesses and around 84% of jobs.

Numbering around 41.5 million, they represent around 50% of industrial jobs and almost 90% of the manufacturing sector, in terms of the number of companies. It is not news that SMEs are an important aspect of innovation and diversification.

The SME sector is promising if there is a strategic approach to invest in its growth. Not only will this help reduce the unemployment rate, but it will also have a positive impact on incomes and improve capacity, resulting in economic growth.

Despite its vital impact on economic development, Nigerian SMEs have operated under very strict conditions. Capacity remains a huge problem, as does funding, as well as infrastructure: utilities, logistics, etc.

Lately, the coronavirus pandemic has taken a heavy toll on the industry, leaving room for trade disruptions; therefore, the need for SME operators to have access to funds and training which will continuously expose them to modern and innovative marketing methods cannot be overemphasized.

Understanding what is required is the first step towards providing a suitable solution. Stanbic IBTC understands the essential links SMEs provide to industries and job creation. Thus, the financial institution has developed solutions to help meet some of the challenges of this segment. Stanbic IBTC has, for example, built a reputation for building the capacity of SMEs through the Stanbic IBTC SME Capacity Building Program. The bank also constantly provides essential support in terms of skills acquisition and financing through tailor-made products.

The design of this solution aims to foster the growth of SMEs in a constantly changing economy. Nigeria ranks 131st out of 189 countries in the 2020 Ease of Doing Business Index, according to a World Bank report. This amounts to reiterating that access to finance is a major obstacle to the growth of SMEs.

Helping SMEs achieve their short-term goals will greatly contribute to their growth. For example, the Stanbic IBTC SME Loan is designed to increase working capital and meet urgent cash flow needs.

All of this with the aim of helping budding and emerging entrepreneurs in Nigeria support their businesses while facilitating the development of a favorable business environment and thriving ecosystem.

In addition, loan-to-credit solutions allow SMEs to obtain loans with ease and convenience. It also offers benefits that include reimbursement flexibility and limited, no-warranty documentation.

One thing to note about this solution is that the ease of access to funds is impressive in helping to tackle the pressing financial challenges facing small and medium businesses in Nigeria. Temporary overdraft offers financial credits to new and existing customers with a maximum repayment term of 90 days.

The loan solution provides fast and solid funds to potential clients, including entrepreneurs looking for urgent funds or temporary overdrafts to meet immediate business needs.

The bank has expressed its commitment to continue developing a unique value proposition to support SMEs with transactional products: savings and investment solutions, credit products; insurance solutions; payment solutions and wealth protection solutions backed by an investment in technology.

This will make the bank more accessible and help the players in the sector to achieve their results while contributing to the growth and development of the country.

Stanbic IBTC Bank’s determination to harness Nigerians’ strong entrepreneurial culture remains evident as the financial institution continues to innovate to help build a vibrant SME sector.