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Zenith Bank Plc, has given recipe on how Micro, Small and Medium Enterprises (MSMEs) in the country can improve access to funding.
Mr Ebenezer Onyeagwu, the Group Managing Director of the bank, spoke at a web seminar,
“Addressing the Funding Challenges for your Business” organized by Lagos Chamber of Commerce and Industry (LCCI) financial services group webinar on Thursday.
He said that having a continuity and succession plan, knowing types of funding available to specific business, and educating the banks to understand your business type would also improve access to funding.
He advised business owners to work out remediation plans as opposed to running away.
He added:“The challenges MSMEs face are from unfriendly business environment, poor funding, low managerial skills, lack of modern technology, poor governance, lack of succession planning but among these, shortage of finance is central. According to the World Bank Doing Business in Nigeria Report 2020, Nigeria scores 15 out of 100 for ease of getting credit.
“However, notwithstanding the evolution of the banking industry and digital disruptions, the five C’s of credit are sacrosanct in the bank’s lending decisions. This means that banking and financial services are highly regulated and so banks are not donor agencies.
“But to access funding more easily, businesses must be conversant with the five Cs of credit, top of which, character is key.Business owners must consciously keep and update financial records regularly and make every effort to service existing loans obligations,” he said.
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