Firm offers collateral-free loans to SMEs

Option Financial Services on Thursday introduced a new loan initiative designed to empower small and medium-sized enterprises (SMEs) with collateral-free loans, aimed at fostering growth and sustainability.

The firm’s founder and CEO, a U.S.-based entrepreneur and financial expert, Mr. Habeeb Fasuyi, officially launched the product, Daily Loan Solutions, during an unveiling event held in Lagos.

In a statement made available to PUNCH Online, Fasuyi, a certified public accountant, explained that the development of this loan product, alongside other innovative services offered by his firm, is in direct response to the Federal Government’s call for Nigerians in the diaspora to return home and contribute to the nation-building process.

He said, “We have always believed that one of the ways to support the government’s initiatives towards nation-building is by encouraging the private sectors to engage in activities that would help stimulate economic growth. I have attended several forums in the U.S, where Nigerian government officials as well as governors and some state officials had come to appeal to Nigerian entrepreneurs to come back home and invest.

“More than anything else, OFS’ decision to launch this product and several other loan products and services, was borne out of the desire to support the government’s economic growth agenda. We are committed to giving financial support to those petty traders and business owners, who may not qualify for traditional bank loans because they do not have collateral.

“The loan is targeted at petty traders like the small restaurant owners, pure water sellers, street hawkers, and several others, who may never be able to provide the collaterals required for accessing regular loans from traditional financial institutions.

“This is our little way of giving back to the community and we are inspired by the United States and other developed countries, where the private sectors, via different initiatives, play pivotal roles in growing and developing the economy.”

Explaining his motivation to establish the loan service, despite a series of existing loan companies in the country, he said, “We recognised a significant gap in the market for accessible, affordable, and flexible loan solutions tailored to petty business owners in Nigeria. As Lagos State is the economic powerhouse of Nigeria, accounting for over 30% of the country’s GDP, we saw an opportunity to create a positive impact on the state’s economy by supporting petty business owners.

“DLS is a revolutionary loan product designed specifically for petty business owners. Our goal is to empower these entrepreneurs with the necessary funds to grow their businesses, create jobs, and contribute to the economic development of Lagos State and Nigeria as a whole.”

Speaking further, Fasuyi explained that DLS has flexible repayment terms, competitive interest rates, minimal paperwork, quick disbursement of funds, and a customer-centric approach.

“Our loan product offers ₦100,000 to ₦500,000. We also provide a range of benefits, including free financial advisory services, business analytics, and strategic alliances with other big companies.”

He, therefore, notes that loan seekers can apply through the company website, mobile app, or by visiting any of the designated branches in Lagos State.

For such loan seekers, the requirements include active business owners, valid business registration, a bank account, and verifiable income source. Also, the age should be between 20 and 65 years. The applicant must have a valid ID card and utility Bill, Character and Capacity to Repay. We conduct a credit check and risk assessment to ensure our clients can repay the loan.”

He further revealed that OFS also offers a range of other loan products with single-digit interest rates, including working capital loans, business expansion loans, equipment financing loans, and emergency loans. Each loan product is designed to meet the specific needs of the clients, providing them with the necessary funds to grow their businesses.

“While our primary focus is on supporting petty business owners in Lagos State and beyond, we also cater to owners of medium-scale enterprises. Our loan products are designed to be flexible and adaptable to the diverse needs of businesses across various scales. We recognise that different businesses have different needs, and we are committed to providing tailored solutions that meet those needs”, Fasuyi concluded.