Nigeria: Heritage Bank promotes financial markets as an alternative financing tool for SMEs

Jul 23, 2013

Heritage Bank has announced it is planning to support small and medium-sized enterprises (SMEs) in Nigeria by ensuring that these companies get listed on the Nigerian Stock Exchange (NSE).

Heritage Bank has announced it is planning to support small and medium-sized enterprises (SMEs) in Nigeria by ensuring that these companies get listed on the Nigerian Stock Exchange (NSE).

The Bank's CEO Ifie Sekibo told This Day newspaper that he believes SME banking is not all about deposit mobilisation, but about who gets to the stock market within the next three years.

"Borrowing as SMEs, you may not be able to produce the kind of collateral required for your kind of business, but when you are on our scheme, it becomes easy because our collective effort will secure your business", he said.

Heritage Bank's
executive director Mary Akpobome added that the bank would ensure that SMEs are trained on basic cash flow forecasting and analysis skills.

The move is expected to help SMEs find new sources of funding, which will stimulate their development and the country's economic growth.

Financial markets indeed represent a viable alternative to bank loans for SMEs. They can bring international awareness while offering them the chance to leverage funds on the financial markets at a better cost than through commercial banks.ADNFCR-2976-ID-801615429-ADNFCR