Sola Adeyiga, managing director of CreditPRO Finance Company Limited, emphasized that Nigerian small businesses seeking institutional credit must prioritize cash flow management and financial discipline over headline profitability. Speaking at the 11th FATE Foundation Annual Business Conference in Lagos, Adeyiga highlighted the importance of cash conversion cycles and liquidity in securing loans, stating, 'Loans are serviced by liquid cash flow, not paper profitability.' The conference, themed 'Beyond Borders: Transforming MSMEs for Global Competitiveness,' brought together entrepreneurs and industry leaders to discuss strategies for scaling Nigerian micro, small, and medium enterprises beyond domestic markets.
Adeyiga outlined that lenders evaluate businesses using the 5 Cs of Credit—character, capacity, capital, conditions, and collateral—but stressed that profitability alone does not guarantee access to finance. He explained that repayment capacity hinges on a business's ability to generate and manage cash flow, meet obligations, and adapt to market changes. 'Collateral provides security, but it cannot replace a viable business model or sufficient repayment capacity,' he noted. This advice comes as Nigerian MSMEs face tighter credit conditions and increasing demands to formalize operations to attract institutional capital.
The conference urged participants to maintain rigorous financial records, separate personal and business finances, and ensure transparent communication with lenders. Adeyiga also highlighted CreditPRO's recent admission into the FATE School Transformers Programme for growth-stage enterprises, underscoring the company's commitment to enterprise development. He reiterated that creditworthiness is built through consistent day-to-day management decisions, not just when seeking financing. For MSMEs aiming to expand regionally or internationally, 'finance-readiness depends as much on internal controls and cash management as on growth ambitions,' he said.
CreditPRO's participation in the event aligns with its focus on empowering businesses to meet institutional lending criteria. The company's guidance reflects broader industry trends where lenders increasingly prioritize record-keeping, account activity, and credit history. As Nigerian MSMEs navigate these challenges, experts stress that financial discipline and transparency are critical to accessing capital and achieving sustainable growth. The FATE Foundation's conference served as a platform to reinforce these principles amid evolving market demands.