Funding: EFInA CEO Tasks SMEs to Look beyond Conventional Loans
Chief Executive Officer (CEO) of Enhancing Financial Inclusion and Advancement (EFInA), Foyinsolami Akinjayeju, has tasked small and medium-sized enterprises (SMEs) to rethink their approach to financing, urging them to look beyond conventional loans and identify capital that aligns with their operational needs, growth ambitions and repayment capacity.
Akinjayeju made this call during a panel discussion titled “Access to Capital Beyond Loans: What SMEs Need to Know in 2026” at the ninth edition of the Caladium Lagos SME (CLSME) Bootcamp, held in Lagos.
Drawing on EFInA’s A2F 2026 insights, Akinjayeju noted that only about10 per cent of Nigerians had accessed formal credit, highlighting the need to improve access to appropriate financing while helping entrepreneurs make informed borrowing decisions.
She cautioned that debt could accelerate business failure if repayment obligations exceed a business’s capacity to generate cash flow. Rather than treating borrowing as the default response to a funding need, she encouraged entrepreneurs to assess their productive capacity, identify operational bottlenecks, and determine what type of financing would address their specific challenges.
“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 said.
Akinjayeju outlined three considerations for SMEs seeking capital: purpose, proof and partners. Purpose requires business owners to establish exactly what the funding will achieve and how it will address a specific business need. Proof involves demonstrating the ability to execute through reliable financial records, cash flow evidence, repeat customer orders, and a track record of fulfilling commitments. Partners refer to relationships with customers, suppliers, investors and other business associates who may provide financing or facilitate access to it.
She encouraged business owners to look beyond conventional loans, introducing them to the mnemonic capital as a framework for understanding seven alternative financing pathways. These include: customer advances and deposit-backed pre-orders; asset leasing, which allows businesses to access productive machinery and equipment without paying the full purchase price upfront; payables and supplier credit, through negotiated payment terms that free up working capital; invoice financing to enable businesses to obtain early payment against qualifying unpaid invoices; third-party equity investments, through which businesses raise capital in exchange for ownership; awards and grants that can provide non-repayable funding for eligible programmes; and leveraged group financing in the form of savings and credit within cooperatives.
Akinjayeju emphasised that the right financing option is not necessarily the easiest to obtain, and that not all seven pathways will suit every business.
“Entrepreneurs must assess which option best aligns with their business stage, funding purpose, cash flow and growth ambitions, while carefully considering the obligations and trade-offs associated with each source of capital,” she said,
Furthermore, Akinjayeju noted the need for business owners to build relationships before they need financing.
“ A history of trust, reliable delivery and sound business practices can strengthen their ability to secure support when funding opportunities arise,” she explained.
The panel conversation addressed a persistent challenge in the SME ecosystem: entrepreneurs often identify lack of capital as their primary obstacle, while funders need evidence that businesses can use financing effectively and meet their obligations. Speaking on the importance of the discussion, convener of the CLSME Bootcamp, Ayo Bankole Akintujoye, noted that capital is frequently cited as the biggest obstacle to business growth, even when entrepreneurs may need to address other constraints first. He explained that the panel was designed to help business owners examine their financing needs more carefully and understand the range of options available to them.
The CLSME Bootcamp is a non-profit initiative dedicated to equipping entrepreneurs with management, leadership and execution capabilities. Across its first eight editions, the platform directly impacted more than 10,000 SMEs. The ninth edition brought together more than 1,500 participants on-site, with an additional 2,000 expected to join virtually from across Africa.
The discussion also 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. Moderated by the Caladium Lagos SME Bootcamp Convener, Ayo Bankole Akintujoye, the session examined financing options available to SMEs, funding readiness and the factors that influence financing decisions.
EFInA continues to advance financial inclusion by supporting the development of an inclusive financial system that expands access to quality financial services and creates opportunities for individuals and businesses across Nigeria.