Chief Executive Officer of Enhancing Financial Inclusion and Advancement (EFInA), Foyinsolami Akinjayeju, has urged small and medium-sized enterprises (SMEs) to discover different sources of capital, warning that dependence on standard loans might expose companies to monetary misery.
She stated entrepreneurs should match their financing decisions with their operational wants, money circulation, compensation capability and progress ambitions fairly than regard borrowing because the default resolution 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 broaden entry to acceptable financing and enhance entrepreneurs’ understanding of accessible funding choices.
She cautioned that borrowing and not using a clear compensation plan might speed up business failure, notably the place debt obligations exceed the money circulation 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 stated.
She outlined three issues for SMEs in search of funding: goal, proof and companions.
Purpose requires entrepreneurs to determine what the funding will obtain, whereas proof entails demonstrating business capability by credible monetary information, money circulation proof, repeat buyer orders and a observe document of fulfilling commitments. Partners embrace clients, suppliers, buyers 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 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, clients and suppliers earlier than needing monetary help, noting that belief, dependable supply and sound business practices might enhance entry to funding.
Akintujoye stated the dialogue was designed to assist entrepreneurs look at whether or not lack of capital was actually 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 straight 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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