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By Arinze Uzo
Business News Correspondent
In a dynamic and often unpredictable financial landscape like Nigeria, the ability to access funds at critical moments makes all the difference. Financial agility is usually the key to unlocking growth and success for entrepreneurs.
With fluctuating prices and unexpected financial policies, many businesses have recently found themselves needing short-term financial solutions to keep their businesses running smoothly. First Bank of Nigeria Limited said it has recognised this challenge and has 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.
According to the bank, the Retail Temporary Overdraft (RTOD) aims to provide customers with flexible, temporary overdrafts to meet urgent business financial needs. It also stated that the features of RTOD include access to up to a million monthly, subject to 10% of 6 months’ credit turnover from sales; interest rates are 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 bank also explained that this facility’s benefits include assistance in growing business volumes, which positions SMEs for higher facility limits. It added that it is helpful in emergencies to meet urgent business needs as 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.
According to the bank, the interest rate is cheaper due to the shorter facility tenor. Some customers 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 said it provided an N5 million overdraft facility with a 30-day tenure, which was made available to him for 12 months. It has helped Champion Five Limited increase production by 50%, expand its customer base, and employ more staff.
