EFInA urges SMEs to explore funding beyond bank loans

Chief Executive Officer of EFInA, Foyinsolami Akinjayeju,

The Chief Executive Officer of Enhancing Financial Inclusion and Advancement, Foyinsolami Akinjayeju, has urged small and medium-sized enterprises to explore alternative sources of funding beyond conventional bank loans to support business growth.

She said entrepreneurs must identify financing options that match their operational needs, growth ambitions and repayment capacity to avoid taking on debts that could undermine their businesses.

According to a statement, Akinjayeju made the call during a panel discussion titled, ‘Access to Capital Beyond Loans: What SMEs Need to Know in 2026,’ at the ninth edition of the Caladium Lagos SME Bootcamp held in Lagos on October 31.

The discussion also featured the Executive Secretary of the Lagos State Employment Trust Fund, Feyisayo Alayande, and the Head of Business Development, Enterprise Banking, Stanbic IBTC Bank, Ikechi Onyeneke. The convener of the bootcamp, Ayo Bankole Akintujoye, moderated the session.

Drawing on EFInA’s A2F 2026 findings, Akinjayeju said only about 10 per cent of Nigerians had accessed formal credit, underscoring the need to improve access to appropriate financing and equip entrepreneurs to make informed borrowing decisions.

She warned that excessive borrowing could accelerate business failure when repayment obligations exceeded a company’s capacity to generate cash flow.

“Before seeking capital, business owners need to understand their productive capacity, identify the constraints holding their businesses back and determine what financing is appropriate for their needs. The question is not simply how to get money, but how to get the right kind of capital for the right purpose,” she said.

The EFInA chief executive outlined three considerations for businesses seeking funding: purpose, proof and partners.

She explained that purpose required entrepreneurs to identify what the funding would achieve, while proof involved demonstrating their capacity to execute business plans through reliable financial records, cash flow evidence, repeat customer orders and a track record of fulfilling commitments.

On partnerships, she urged business owners to cultivate relationships with customers, suppliers, investors and other business associates who could provide financing or facilitate access to capital.

• Lagos targets more jobs, investments in 2027
• Sanwo-Olu identifies Lekki corridor as banks’ major financing opportunity
• Sterling Bank signs renewable energy, SMEs financing deal

Akinjayeju also introduced the acronym CAPITAL as a framework for understanding seven alternative funding options available to SMEs.

The options include customer advances and deposit-backed pre-orders, asset leasing, supplier credit, invoice financing, third-party equity investments, awards and grants, and leveraged group financing through cooperative savings and credit arrangements.

She explained that customer advances could provide upfront funding for production, while asset leasing would allow businesses to access machinery and equipment without paying the full purchase price immediately.

She added that supplier credit and invoice financing could ease working capital pressures, while equity investments would enable businesses to raise funds in exchange for ownership stakes.

The EFInA boss cautioned that not every funding option would suit all businesses, urging entrepreneurs to consider their business stage, cash flow, funding requirements and growth ambitions before choosing a financing structure.

She also stressed the importance of building relationships before seeking financial support, noting that trust, reliable delivery and sound business practices could improve businesses’ chances of securing funding.

Speaking on the importance of the discussion, Akintujoye said entrepreneurs frequently identified lack of capital as their biggest obstacle to growth, even when other business constraints required attention.

He said the panel aimed to help business owners examine their financing needs more carefully and understand the range of funding options available beyond conventional loans.

The Caladium Lagos SME Bootcamp is a non-profit initiative focused on equipping entrepreneurs with management, leadership and execution skills.

The organisers said the first eight editions had directly impacted more than 10,000 SMEs, while the ninth edition attracted more than 1,500 physical participants, with an additional 2,000 expected to participate virtually from across Africa.