First National Bank rolls out new lending solutions for SMEs
First National Bank has introduced a system-based tool to help micro, small, and medium-scale enterprises to easily access credit without the hassle of financial statements and documentation.
The bank piloted the tool, known as the Scored Credit model for six months, with over 250 loans disbursed to eligible small and medium-sized enterprises (SMEs) over the last 9 months. There are about 400 more customers whose applications are being reviewed.
According to Statista-a German online platform that specializes in data gathering and visualization, SMEs in Ghana make up about 90% of companies, employ about 80% of Ghana’s workforce and contribute about 60% to the nation’s Gross Domestic Product (GDP). However, many SMEs are unable to access the finance they need to operate efficiently and scale up.
“At First National Bank, our purpose beyond profit is help, and that’s why we have developed this unique proposition to help our customers to access credit at every stage of the business,” says Dinesh Fakir, FNB International Chief Executive Officer.
He emphasized that Scored Credit is an unsecured facility that comes as an overdraft or term loan with a flexible repayment tenor of up to 12 months. Because of minimal documentation, the cost of assessing this loan is cheaper and more convenient for SMEs
“The system-based approval tool analyses the transactional behavior of First National Bank customers who have operated their bank accounts for a minimum period of 6 months and have been in operation for at least 12 months,” Mr. Fakir says.
Clients that have banked with First National Bank for over six months are eligible for Scored Credit. To apply, a customer has to place an official request to First National Bank, stating the amount, tenure, and purpose of the facility. Customers can also contact the SME BizHub, the branch, or the Call Center for guidance.
“We have surprised many customers by informing them of pre-approved facilities through the scored credit based on their account operations with us says Mr. Fakir. This is our commitment to growing and developing SMEs in Ghana. We provide the working capital support that enables businesses to take the next step in their growth journey.
One of the beneficiary business customers, Nancy Amoah, a project consultant at Donsi ViIllas, affirmed that one of their recent developments required resources and funding capital to help scale up and complete a project on schedule.
“When we engaged our bankers at First National Bank, they enrolled us onto BizHUB, their financial advisory service. They provided us with the financial advice and support that we are enjoying now. With their Scored Credit, they helped us throughout this project. We didn’t have to worry about where the next funding will come from and we’re thankful that we could rely on First National Bank at such a time”.
