Ask most entrepreneurs what is holding their business back and the answer is often the same:

"I need funding."

But what if funding is not the first problem to solve?

At the recent SMEConnect Q2 Webinar, themed "Funding Your Growth: How SMEs Can Access Finance and Scale Faster," one message resonated across the keynote and panel discussions:

Capital follows clarity.

Before banks, investors, or development institutions commit funds, they want evidence that a business understands its market, has financial discipline, and possesses a credible path to growth.

As former Minister of Finance and Founder of Nidacity, Kemi Adeosun, noted:

"Investors and banks do not fund ideas; they fund businesses."

A strong idea becomes a business only when it solves a real problem and demonstrates demand.

What Makes a Business Fundable?

According to Afoluwake Dahunsi, Head, Credit Analysis & Processing, FirstBank, businesses improve their chances of securing financing when they can demonstrate:

  • Proper financial records
  • Consistent cash flow management
  • Separation of personal and business finances
  • A strong credit history
  • A viable growth model

In many cases, access to finance starts with building credibility and financial discipline long before a funding application is submitted. 

The discussion also highlighted that financing extends beyond traditional bank loans.

Oluwatoyin Edu, Executive Director, Bank of Industry (BOI), outlined various funding opportunities available to SMEs, including development finance programmes, sector-focused interventions, grants, equity funding, and working capital facilities.

Similarly, Helen Willie, Head, SME Banking, FirstBank, emphasised that FirstBank offers a broad spectrum of financing solutions tailored to businesses at different stages of growth, with many of its facilities available without collateral requirements. She noted that while access to finance is important, sustainable business growth depends on much more than capital. It also requires business knowledge, strategic partnerships, market access, and strong business fundamentals.

Growth Is Not Always About More Money

Many businesses assume the next stage of growth depends solely on raising more capital.

Often, the bigger opportunity lies in:

  • Strengthening customer acquisition
  • Improving record-keeping
  • Refining products and services
  • Building strategic partnerships
  • Investing in knowledge and mentorship

In today's environment, resilience is increasingly driven by discipline, adaptability, and continuous learning.

Five Actions SMEs Can Take Today

  1. Validate your business model before seeking capital.
  2. Know your numbers and maintain financial visibility.
  3. Keep business and personal finances separate.
  4. Build a strong credit reputation.
  5. Invest continuously in learning and capability development.
     

One particularly inspiring case study was that of an entrepreneur who began selling products from the boot of a car while maintaining a full-time job. Through consistency, market validation, and disciplined execution, the business eventually grew into a company generating billions in annual turnover.

The lesson was simple: Successful businesses rarely start big. They grow because they solve real problems and execute consistently.

Beyond Financing

At FirstBank, supporting SMEs extends beyond providing capital. Through initiatives such as SMEConnect, sector-focused financing solutions, advisory support, capacity-building programmes, and strategic partnerships with institutions such as BOI and SMEDAN, the Bank continues to help businesses build the foundations required for sustainable growth.

The webinar left participants with one key takeaway: Businesses become fundable long before they receive funding.

If additional funding became available to your business today, where would you invest it first to drive growth: additional capital, enhanced business knowledge, stronger systems, or access to new markets?

We believe that funding is only one part of the growth equation. By equipping entrepreneurs with the right knowledge, systems, and support networks, we are helping build stronger, more resilient businesses that are prepared to seize opportunities and achieve long-term success. Talk to us today on smedesk@firstbankgroup.com