Chief Executive Officer of Enhancing Financial Inclusion and Advancement (EFInA), Foyinsolami Akinjayeju, has urged small and medium-sized enterprises (SMEs) to discover various sources of capital, warning that dependence on standard loans might expose companies to monetary misery.
She mentioned entrepreneurs should match their financing decisions with their operational wants, money move, compensation capability and development ambitions quite than regard borrowing because the default answer to funding challenges.
Akinjayeju spoke throughout a panel dialogue titled “Access to Capital Beyond Loans: What SMEs Need to Know in 2026” on the ninth version of the Caladium Lagos SME (CLSME) Bootcamp, held in Lagos.
The session featured Feyisayo Alayande, Executive Secretary of the Lagos State Employment Trust Fund (LSETF), and Ikechi Onyeneke, Head of Business Development, Enterprise Banking, Stanbic IBTC Bank. It was moderated by the bootcamp convener, Ayo Bankole Akintujoye.
Drawing on EFInA’s A2F 2026 insights, Akinjayeju disclosed that solely about 10 per cent of Nigerians had accessed formal credit score, underscoring the necessity to increase entry to appropriate financing and enhance entrepreneurs’ understanding of obtainable funding choices.
She cautioned that borrowing with out a clear compensation plan might speed up business failure, significantly the place debt obligations exceed the money move a business can generate.
“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 mentioned.
She outlined three concerns for SMEs in search of funding: objective, proof and companions.
Purpose requires entrepreneurs to determine what the funding will obtain, whereas proof entails demonstrating business capability by means of credible monetary information, money move proof, repeat buyer orders and a observe report of fulfilling commitments. Partners embody prospects, suppliers, traders and business associates who can present funding or facilitate entry to capital.
Introducing the mnemonic CAPITAL, Akinjayeju recognized seven financing options beyond standard loans: Customer Advances and deposit-backed pre-orders; Asset Leasing; Payables and Supplier Credit; Invoice Financing; Third-Party Equity Investments; Awards and Grants; and Leveraged Group Financing by means of cooperatives.
She defined that these choices might assist companies entry working capital, tools and growth funds with out essentially taking conventional bank loans.
However, she pressured that no single financing possibility would swimsuit each business, urging entrepreneurs to contemplate their business stage, funding necessities and the obligations hooked up to every supply.
She additionally suggested SMEs to construct relationships with potential financiers, prospects and suppliers earlier than needing monetary help, noting that belief, dependable supply and sound business practices might enhance entry to funding.
Akintujoye mentioned the dialogue was designed to assist entrepreneurs study whether or not lack of capital was really their largest constraint and perceive the financing choices obtainable to them.
The CLSME Bootcamp, a non-profit initiative targeted on strengthening entrepreneurs’ administration, management and execution capabilities, has immediately impacted greater than 10,000 SMEs throughout its first eight editions.
Its ninth version attracted over 1,500 bodily members, with one other 2,000 anticipated to take part nearly from throughout Africa.
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