High MPR, Lack Of Collateral Force Lenders To Rethink SME Credit Models

Nigerian lenders are adapting how they assess small-business borrowers as high interest rates and limited collateral challenge conventional lending. At a media briefing in Lagos, Zitra Investments managing director Tunde Obadero described a shift toward cash-flow assessments, shared repayment responsibility and invoice discounting. These approaches could offer financing options for businesses that generate revenue but lack assets to pledge as security.

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