In the face of mounting challenges faced by small businesses, especially high-interest loans, the Enterprise Development Centre (EDC) of Pan-Atlantic University has partnered with Fast Credit to launch a single-digit financing scheme aimed at empowering MSMEs.

Speaking at the unveiling, acting Managing Director of Fast Credit Finance Company Ltd, Yetunde Faulkner, said the essence of the partnership is to ensure that Micro, Small, and Medium Enterprises (MSMEs) become scalable and sustainable through improved access to affordable finance.

“We are offering any amount of loan, starting with N5 million, under a partnership with one of our developmental finance partners, BOI, at a flat monthly interest rate of 0.75 per cent, which amounts to nine percent per annum,” she explained.

Faulkner noted that Fast Credit has committed N2 billion to the SME financing partnership, to help entrepreneurs grow revenues faster than costs and remain sustainable. She added that the loan offering is expected to enable MSMEs to create more jobs, something the Nigerian economy urgently requires.

Director of EDC, Dr. Nneka Okekearu, described the partnership as a historic step in bridging the funding gap confronting entrepreneurs.

“We have collaborations with several commercial banks, but the double-digit interest rates at which loans are offered have made it tough for entrepreneurs.

“Today, we are doing something historic. We are signing an agreement with Fast Credit for single-digit loans for our members,” she said.

Okekearu emphasised that access to single-digit credit will significantly boost business productivity.

According to her, manufacturers, for instance, will be able to expand output, while many MSMEs will create more dignified and fulfilling jobs for young Nigerians as they scale up.

Executive Director at Fast Credit, Aviomoh Daniel, outlined some of the criteria that finance firms consider before extending loans to MSMEs.

“We look out for business worthiness, profitability, and the character of the entrepreneur. Collateral is the last thing any credit firm considers. To be business-credible requires structure, and for security, it is better to register as a limited liability company,” he said.

Feyikemi Odunuga, a business consultant, applauded the collaboration between EDC and Fast Credit for creating easier access to capital for entrepreneurs.

Kachi Salvation, an EDC alumnus, also described the initiative as “amazing,” noting that it will benefit a large number of businesses.