By Tosin Ajayi
In a dynamic and often unpredictable financial landscape like Nigeria’s, the ability to access funds at critical moments can make 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 have recently found themselves in need of short-term financial solutions to keep operations running smoothly.
Recognising this challenge, First Bank of Nigeria Limited, a pioneer in innovative financial solutions, redesigned its Retail Temporary Overdraft (RTOD) product as a lifeline, empowering businesses with swift, flexible cash flow support. This initiative allows business owners to better navigate the complexities of business management.
The RTOD is designed to provide customers with flexible, short-term overdraft access to meet urgent business needs. Key features of the RTOD include:
Access to up to N5 million monthly, subject to 10% of the last six months’ credit turnover from sales
Competitive interest rates, subject to prevailing money market conditions
No tangible collateral required
A 30-day facility tenor, accessible up to 12 times a year
The benefits of this facility include support for growing business volumes and positioning SMES for larger facility limits in the future. It is especially useful in emergencies and does not require tangible collateral. Once the facility is repaid within 30 days, it can be accessed again throughout the year. Its short tenor also contributes to a more affordable interest rate.
Eligible SMES must have maintained an account with FirstBank for at least six months, or 12 months with another commercial bank.
The maximum drawable amount is N5 million monthly, subject to 10% of the customer’s credit turnover over the past six months. Repayment is automatically deducted from incoming business proceeds into the borrower’s account.
Customers can apply by contacting a FirstBank SME Advisor or applying online with the required documents. In cases where all criteria are met, approval can be granted within 24 hours.
To ensure customers can maximise opportunities and enjoy healthy turnover, the facility ceiling is set at N5 million globally for qualified applicants who demonstrate a strong track record of prompt repayment and meet all stipulated criteria.
Several businesses have turned their fortunes around through this facility. One such example is Mr. Isola, the prime mover of Champion Five Limited, a food retail vendor. Seeking to augment working capital and boost production, he approached FirstBank and received a N5 million overdraft with a 30-day tenor, renewable over 12 months. This funding enabled the company to increase production by 50%, expand its customer base, and hire additional staff. Champion Five Limited has since continued to grow significantly.
The RTOD product has positively impacted both male and female entrepreneurs. This contribution was among the reasons FirstBank received two prestigious awards at the Asian Banker Excellence in Retail Financial Services International Awards 2024.
The bank was recognised as both the Best SME Bank in Nigeria and the Best SME Bank in Africa, reflecting its commitment to empowering Small and Medium Enterprises (SMEs) and driving retail financial excellence across the continent.
The Asian Banker awards are among the most competitive and rigorous in the global banking industry. Their evaluation criteria include service delivery, customer experience, financial performance, and innovation in retail banking. With an expert panel assessing each institution’s track record, FirstBank’s recognition as a continental leader affirms its outstanding leadership and strategic vision in Africa’s financial ecosystem.
As the backbone of the Nigerian and African economies, SMES play a vital role in employment generation, innovation, and economic growth. However, they often face daunting challenges, especially in securing adequate financial support.
FirstBank stands out not only as a financial institution but as an enabler and advocate for the SME sector.
Through a wide range of SME-focused products—from deposits and loans to customised advisory services, FirstBank continues to provide the essential tools that businesses need to succeed.
The bank’s Firstsme initiative further reinforces its support by helping businesses access capital, manage cash flow, and navigate the challenges of a competitive market.
This unwavering commitment is a key reason why FirstBank was celebrated at the Asian Banker Awards.
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