The Enterprise Development Centre of Pan-Atlantic University has partnered with Fast Credit to introduce a new single-digit financing scheme aimed at supporting micro, small, and medium enterprises across the country. The announcement was made on Monday during an event held in Lagos, where both organisations explained that the initiative is designed to ease the funding challenges faced by many small businesses operating under high-interest loan conditions. According to the partners, the programme will give entrepreneurs a chance to access more affordable credit and grow their operations.
Acting Managing Director of Fast Credit Finance Company Ltd, Yetunde Faulkner, said the partnership focuses on helping MSMEs become more scalable and sustainable through better access to finance. She stated, “We are here to engage with EDC’s partners, who are SMEs, and provide them with the opportunity to access single-digit interest-rate financing through Fast Credit. We are offering any amount of loan, starting with N5m, 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 per cent per annum.” She added that Fast Credit has committed N2bn to the SME financing partnership to support entrepreneurs in growing revenue, managing costs and staying sustainable.
Faulkner also noted that the initiative aims to contribute to the creation of more jobs in the economy. She said, “We will be touching lives and families, and that in itself is one of the goals of Fast Credit: to make a tangible impact in the lives of everyday Nigerians, especially those in Lagos.”
Director of EDC, Dr Nneka Okekearu, described the agreement as an important step toward closing the funding gap that entrepreneurs have been struggling with for years. She explained that, although EDC already collaborates with several commercial banks, many businesses are unable to cope with the double-digit interest rates attached to their loans. “Today, we are doing something historic. We are signing an agreement with Fast Credit for single-digit loans for our members,” she said.
Okekearu said access to credit at single-digit rates will help businesses improve productivity and expand their operations. She noted that manufacturers will be able to increase their output, while many MSMEs will create more dignified employment opportunities for young Nigerians. According to her, “Someone who previously had just N2m to transact business now has access to N10m, and that means increased production capacity and healthier margins.” She added that entrepreneurs within EDC’s network who meet the required conditions will be able to access N5m at the nine per cent annual rate.
Executive Director at Fast Credit, Aviomoh Daniel, shared some of the key criteria used by lenders before giving out loans to MSMEs. He explained, “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.”
A business consultant, Feyikemi Odunuga, praised the partnership, saying it would make a significant difference for entrepreneurs who struggle to access capital. “I feel very good about it. I actually came to represent several of my mentees who always need funding. I will help them put things together so they can access the loan. I am a service provider, so this is particularly important for those in the manufacturing sector,” she said.
An EDC alumnus, Kachi Salvation, also welcomed the initiative, calling it “amazing” and noting that the programme will have a positive impact on many businesses. He said, “A lot of businesses are going to take advantage of this initiative. They will also train women on how to manage their businesses, and this will be done monthly. The single-digit interest rate is a huge relief for businesses.”
