Esther Oluku
Business progress accelerator for Sub-Saharan Africa, Cascador, in partnership with Sterling Bank has introduced a $200 million SME Credit Backstop Fund focused in the direction of increasing entry to progress capital for debt-ready Nigerian Small and Medium scale Enterprises (SMEs).
The Fund will present an outlined credit-risk backstop to collaborating finance companions, with the mannequin supporting as much as $1 billion in excellent credit score capability.
Chief Executive Officer, Cascador, Trish Thomas, stated: “Nigeria is wealthy in entrepreneurial expertise and innovation and but their potential is constrained by lack of entry to capital that matches the place they’re and what they’re attempting to realize.
“The SME Credit Backstop Fund aims to transform potential into a reality by bringing the experience and capital of the ecosystem to create a practical route to debt for Nigerian businesses with proven traction. By sharing risk with lenders, and translating community trust into a bankable signal to lend, the fund can help more businesses access what they need to scale and create jobs.”
In his remarks, Group Executive, Sterling Bank, Obinna Ukachukwu, defined that alongside the extra safety of the credit score backstop, the initiative brings collectively companies advisable by collaborating enterprise funds and studios who know these enterprises and have supported their growth.
“This combines a stronger borrower pipeline with structured assessment and ongoing monitoring, giving us greater confidence to provide larger, longer-term loans. As a lending partner, we see the potential for this arrangement to bolster SME lending, helping proven businesses access the capital they need to scale,” Ukachukwu stated.
