The CEO of Page Financials, Segun Akintemi has revealed the number one reason why SME’s struggle with getting loan facilities to run their business.
Speaking at Plus TV Africa’s exclusive One-on-One Programme, Mr Akintemi said the SME’s lack a deep understanding of their financial management.
While speaking on handholding SMEs so that they do not fail, Mr. Akintemi said:
“I think the starting point is understanding the nature of their business and their finances”
“SMEs tend to be in a haste to walk when they should be crawling”
“if you want to setup a poultry farm, you have to understand the art of selling eggs. So if you don’t know how to sell eggs, you’re going to be in trouble”
“A lot of SMEs are seeking for quick wins where they should be developing their business”
“We have to think Big, but we have to start small”
When asked on how loans are vetted for SMEs, he said:
“90% of the time, they don’t need what they’re asking for”
He concluded by saying a lot of SMEs need to understand what they really want, its usually not about cash but about value creation.
Watch the video below: