FirstBank's Temporary Overdraft Fuels SME Growth, Secures Top African Awards

In Nigeria's dynamic financial landscape, access to timely funds can be a game-changer for entrepreneurs. Recognizing the need for agile financial solutions, First Bank of Nigeria Limited has strategically redesigned its Retail Temporary Overdraft (RTOD) product to provide businesses with swift and flexible cash flow support. This initiative is empowering business owners to navigate economic uncertainties and unlock growth potential. 

The RTOD offers eligible SMEs access to up to N5 million monthly, subject to 10% of their six-month credit turnover from sales. Key features include competitive interest rates (subject to market fluctuations), no tangible collateral requirement, and a flexible 30-day tenor that can be accessed up to 12 times annually.

This facility offers several benefits, including the potential to grow business volumes, access to funds for urgent needs without collateral, and cost-effective short-term financing. SMEs with consistent cash flow and a minimum six-month account history with FirstBank (or 12 months with another commercial bank) are eligible. Repayment is automated from incoming business proceeds. Interested customers can contact a FirstBank SME advisor or apply online with required documentation, with approval possible within 24 hours for those meeting all criteria.

The impact of the RTOD is evident in success stories like Champion Five Limited, a food retail vendor. By leveraging a N5 million overdraft facility over 12 months, the company increased production by 50%, expanded its customer base, and hired more staff, demonstrating the product's potential to catalyze significant business growth.

FirstBank's commitment to empowering SMEs through innovative solutions like the RTOD has earned the institution significant recognition. At the prestigious Asian Banker Excellence in Retail Financial Services International Awards 2024, FirstBank was crowned both the **Best SME Bank in Nigeria** and the **Best SME Bank in Africa**. These awards underscore the bank's outstanding leadership, service delivery, customer experience, financial performance, and innovation in supporting the SME sector, which is vital to the growth of the Nigerian and African economies.

The Asian Banker awards are highly respected globally, with a rigorous evaluation process. FirstBank's recognition highlights its dedication to providing SMEs with crucial resources, including tailored financial products like the RTOD, deposit products, loan packages, and advisory services through its FirstSME initiative. By acting as an enabler and advocate for SMEs, FirstBank is solidifying its dominance in the retail financial sector and driving economic growth across the continent.