A financial expert, Gbemi Adelekan, has advised micro, small and medium enterprises (MSMEs) to ensure a solid repayment history to enhance their credit scores and improve their access to funding.

Mr Adelekan, in an interview with journalists in Lagos on Saturday, said that in Nigeria, accessing credit facilities is crucial for individuals and enterprises to meet various financial needs, increase the circulation of disposable income and enhance business sustainability.

Mr Adelekan emphasised that a strong repayment history would enhance access to higher levels of funding, which would enable the expansion of small businesses into larger enterprises and increase their performance.

“A short-term loan with a solid repayment history can significantly enhance your credit score in a short period of time.

“This improvement in your creditworthiness opens up greater opportunities to secure larger loan amounts in future applications,” he said.

Mr Adelekan said short and quick loans had helped many small businesses navigate murky economic terrains, particularly those operating in the informal bracket.

“An ice block maker, that hairdresser on the street, the welder whose machine needs to work, and other artisans may be unable to go to big banks or development finance institutions to ask for small loans.

“They may not have the requisite paperwork. Accessing small and quick loans online has saved many of these businesses from collapse.

“Fortunately, the money lending sector is fully regulated by the FCCPC, and the rights of borrowers are very much protected,” he said.

He said that non-repayment of loans had adverse effects.

“Owing money for a long time and watching the interest accrue on such a facility can have a psychological effect,” he said.

(NAN)