By TOSIN AJAYI

In a dynamic and often unpredictable financial landscape like Nigeria, the ability to access funds at critical moments makes all the difference. For entrepreneurs, financial agility is often the key to unlocking growth and success. With fluctuating prices and unexpected financial policies, many businesses in recent times have found themselves in need of short-term financial solutions to keep their business running smoothly. Recognising this challenge, First Bank of Nigeria Limited, a pioneer in innovative financial solutions, redesigned the Retail Temporary Overdraft (RTOD) as a lifeline to empower businesses with swift, flexible cash flow support that can significantly empower business owners, allowing them to navigate the complexities of business management with greater ease.

The Retail Temporary Overdraft (RTOD) is aimed at providing customers with flexible temporary overdraft to meet urgent business financial needs. The features of RTOD include:

Access up to N5million monthly subject to 10% of 6 months credit turnover from sales

Interest rate is competitive and subject to changes in money market realities

No tangible collateral is required

Facility tenor is 30 days, and this can be accessed up to 12 times in one year.

The benefits of this Facility include assistance in growing business volumes which position SMEs for higher facility limits. It is useful in emergency situations to meet urgent business needs. No tangible collateral is required to get the loan, and it is available throughout the year once the existing facility is repaid within 30 days. The interest rate is cheaper due to the shorter facility tenor.

SMEs with regular cash flow who have maintained an account with FirstBank for a minimum period of six [6] months or 12 months in any other commercial bank are eligible for this facility. The amount drawable on this facility is N5million monthly, subject to 10% of the customers? last 6 months credit turnover. Repayment is automatically deducted from (Sales or business proceeds) incoming receivables into borrower?s account within the stipulated time. To apply, customers need to show interest by contacting the FirstBank SME advisor or apply online by submitting the required documents. Approval could be as fast as 24 hours in cases where the customer fulfills all criteria.

To ensure that customers can maximise given opportunities and enjoy maximum turnover, the loan figure is N5 million globally for qualified customers who show a good track record of prompt repayment and also meet the stipulated criteria.

There are many customers who have been able to turn their businesses around with the help of this facility, such as Mr. Isola, the prime mover of Champion Five Limited, a food retail vendor who approached FirstBank for funding to augment his working capital and increase production. The bank provided a N5million overdraft facility with a 30-day tenure which was made available to him for 12 months. With the funding, Champion Five Limited was able to increase production by 50% and expand their customer base as well as employ more staff. The company has continued to grow in leaps and bounds.

FirstBank?s Retail Temporary Overdraft product has been so impactful to the businesses of both male and female entrepreneurs. This contributed to the bank?s achievements, where it was honored with two highly prestigious awards at the Asian Banker Excellence in Retail Financial Services International Awards 2024. The awards, presented by The Asian Banker, crowned FirstBank as both the Best SME Bank in

Nigeria and the Best SME Bank in Africa, a testament to the institution?s commitment to empowering Small and Medium Enterprises (SMEs) and driving retail financial excellence across the continent.

The Asian Banker awards are widely recognized as one of the most competitive and rigorous in the global banking industry. The evaluation process is stringent, focusing on various key performance indicators, including service delivery, customer experience, financial performance, and innovation in retail banking. With an extensive panel of experts examining each institution?s track record, FirstBank's recognition as the leading SME Bank in both Nigeria and Africa signals its outstanding leadership and vision in the African financial industry.

As the backbone of the Nigerian and African economies, SMEs play a crucial role in driving employment, innovation, and economic growth. However, they often face significant hurdles, especially in securing adequate financial support. This is where FirstBank steps in, not just as a traditional banking partner, but as an enabler and advocate for the sector.

With its range of SME-focused financial products, from deposit products, loan packages to tailored advisory services, FirstBank has distinguished itself as a leader in providing SMEs the resources they need to thrive.

The bank?s FirstSME initiative is designed to support businesses in accessing capital, managing cash flow, and navigating the complexities of business development in a competitive market. This commitment is what earned FirstBank top recognition at the Asian Banker awards.

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