Seyi Asagun is a finance executive and inclusive lending advocate dedicated to transforming access to capital for Nigeria’s underserved businesses. With extensive experience in microfinance and small and medium-sized enterprises (SMEs) development, he champions innovative lending solutions that drive real, sustainable business growth. In this interview with Kenneth Athekame, he shares practical insights on fixing the finance landscape in Nigeria. He also highlights how The Entourage Integrated Trust, his company, has supported small businesses in scaling their operations. Excerpt:
What informed the establishment of Entourage Integrated Trust Limited?
The company was founded based on a few key factors. Primarily, I recognized a significant opportunity due to the financing gap faced by SMEs. Many customers would come to deposit funds and conduct business, but when they needed to borrow money, they often did not qualify for loans from traditional banks. This was not necessarily the banks’ fault, as they have strict rules and regulations. Seeing this gap, I decided to create a product tailored to address the unmet needs of these SMEs. Beyond the business opportunity, I was also motivated by a desire to make a positive impact and do good in people’s lives. That combination of spotting a market gap and wanting to contribute meaningfully led to the founding of Entourage Integrated Trust Limited.
What role do MSMEs play in the mission of your company?
Basically, like I said, I saw a gap in financing in Nigeria for SMEs, and I think it has been one of my goals to empower people and businesses. I think it is a good thing when you see other people thrive. It is a symbiotic relationship and empowering people and making them also realize they are the reason you are in business. I think that SME financing works for our company.
How has your operation across 29 states shaped your approach to supporting MSMEs in Nigeria?
From state to state, we provide tailored development solutions. Although our operations are based in Lagos, it is important to note that the solutions we offer in Lagos differ significantly from those in other states like Abuja or Kaduna in the North. Our approach is flexible and location-specific. One key distinction in our model is that we do not require equity payments or contributions from our customers before providing funding. Unlike many microfinance institutions that demand collateral, equity contributions, or mandatory savings accounts before granting loans, our process is different. We have eliminated those barriers to make access to funding seamless for SMEs.
What are the key lending products for MSMEs and how are they tailored to the Nigerian market?
We offer a simplified range of loan products tailored to different customer segments. These include: Daily loans – primarily designed for micro businesses, functioning much like reverse loans, while weekly and group weekly loans are targeted at small businesses.
Monthly loans are intended for medium-sized enterprises and above, which we refer to as corporate loans.
While our core products are limited in number, we have sub-products under these categories. For example, we offer personal loans, which can serve both individuals and SMEs. Additionally, for SMEs, we have options like equipment leasing and other tailored financial solutions. Our approach is to streamline our offerings rather than have an overwhelming number—say 200 different loan types. We focus on a few key products: daily loans for micro businesses, weekly loans for small businesses, and monthly (corporate) loans for medium and larger enterprises.
What criteria do you use to assess eligibility of MSME for loans?
Alright, so we have a well-trained team that conducts thorough KYC (Know Your Customer) procedures. We understand our customers nationwide—we engage with them directly, assess their businesses, and familiarize ourselves with their operations and strategies. While many of these businesses may not have formal accountability structures in place, we recognize and accept their local methods of managing and analyzing their enterprises. As long as their records reflect basic financial indicators like costs, sales, and some profit margin, we are comfortable proceeding. In essence, we know our customers well. Our internal processes are robust enough to support our decisions. We do not require any collateral—none at all—because our approach is built on trust and an understanding of their business realities.
Can you share examples of how you have helped small businesses scale operations?
These individuals are able to access funding in a timely manner. When customers are looking to expand their inventory, it is important for them to feel supported. They need to know that there is an institution backing their efforts. Having access to funds at the right moment gives them the confidence to scale their operations effectively.
In addition to financial support, we also provide them with training and guidance on how to use the funds appropriately and what to avoid. We ensure they are making informed decisions and staying on track. I believe that kind of support plays a major role in their growth.
How involved are you in guiding businesses you invest in?
As I mentioned earlier, our staff are well-trained and fully equipped to work with micro and small businesses. They understand how to properly assess a customer’s business — evaluating where they are in their business journey, the systems they have in place, and how best to guide them. For instance, if a client is selling seasonal items like Christmas gifts, our staff can advise them accordingly. We might suggest diversifying their product offerings so that they have items to sell even outside the festive season. This way, their business can remain profitable year-round.
We also provide strategic advice on how to strengthen their operations — from how to manage their finances, to the best time and place to source their products. In some cases, we have access to data showing where other customers are getting their supplies more affordably, and we share that information to help them cut costs.
Ultimately, our goal is to ensure that these businesses thrive, because their success directly impacts our ability to recover the funds we provide. By offering the right support at the right time and ensuring that the funds are used effectively, we help them become more sustainable and profitable.
What are the biggest challenges MSMEs face in accessing finances in Nigeria?
The issue is two folds. First, it stems from the banks themselves. Banks are not in the business of just giving out money freely—they operate based on strict principles, policies, and they are regulated by the Central Bank of Nigeria (CBN). No bank will release funds without proper justification.
Secondly, many of these businesses are not properly structured. They often lack the collateral banks typically require. Their sales records are poorly documented, and in many cases, they do not have proper systems or frameworks in place to make them eligible for funding from traditional or commercial banks.
So, it is a two-way problem: on one hand, the banks are not flexible—their processes are slow and bureaucratic. If a business owner needs funding within two or three days to seize an opportunity, chances are slim that a bank will disburse funds that quickly due to these delays. On the other hand, the requirements for accessing these funds, especially collateral, are too stringent for most small businesses.
These are the key reasons many businesses struggle to access financing from traditional banks.
How do you mitigate these challenges?
That is why, at MFI, we have designed products that do not rely heavily on collateral. Like I mentioned earlier, we do not ask customers to build a long-standing relationship with us before we lend to them. We also do not require equity contributions or upfront investments. Instead, we work with the traditional bookkeeping methods our customers already use.
For example, a typical small trader might record that they buy an item for N5 and sell it for N6, making a margin of N1. It is that simple; nothing complicated. These are the kinds of informal records that most banks will not accept, but we do.
As long as we understand the customer’s daily profit and can see that their income is enough to repay their obligations, including debts from other lenders, since we know we are not the only ones, they qualify. We pay close attention to the margin between their costs and sales, and as long as it is healthy, we are satisfied.
We do not burden them with the long list of requirements banks usually ask for, because we understand who they are. Take, for example, a typical market woman. She might not have any collateral, but she is reliable. She is there every day, selling, and what she needs is often a modest amount, maybe ₦50,000 or ₦100,000, to boost her inventory. She hss been in that same market stall for 12 years and will be there again tomorrow. That consistency is what matters to us.
For us, it all comes down to the relationship. We know these customers, we understand their businesses, and we trust their continued presence and activity in the markets they serve. That is enough assurance for us.
What is the impact of the current economic climate on your support for MSMEs?
I believe that the primary issue is the high cost of funding. Even when funding is available, it has become extremely expensive, and many government policies are not helping the situation. On top of that, multiple taxation and the overall cost of doing business in Nigeria are significant challenges. All these factors heavily impact businesses and make it very difficult to thrive.
It is frustrating because while we strive to provide funding and support for businesses, sometimes we find ourselves questioning who supports us. The government’s support is minimal or absent, and critical infrastructure is lacking. Additionally, the unstable political climate further complicates the business environment. These challenges make it harder to support SMEs effectively at times.
How is technology used to deliver services to MSMEs?
When we first started, we relied on basic tools like Excel and simple methods to manage our operations. But now, we have integrated a variety of software solutions to automate and streamline our processes. Just last week, we acquired a new loan processing system called CARS, which helps us structure and manage our loans more efficiently.
Our goal is to deliver loan approvals within 24 hours, and to achieve that, we need a sophisticated system that tracks the loan processing workflow. This system ensures that every team member knows when it is their turn to work on a loan, helping us meet our promised delivery times. It also prompts timely approvals or informs customers promptly if a loan cannot be approved for any reason, enhancing transparency and customer experience.
In addition to loan processing, we have also improved our customer service by using technology to monitor loan repayments and manage customer interactions more effectively. Technology plays a vital role in everything we do, and we continuously upgrade our software to ensure we deliver excellent and timely service to our customers.
So yes, technology has been crucial to our business growth, and every day we strive to improve and innovate further.
What steps are being taken to support women-led MSMEs?
First, we need to identify the needs of our customers, but many people are hesitant to come forward and express what they really require. While we actively promote ourselves and advertise our products, it js equally important for customers to speak up and tell us what they need.
In particular, our main customer base consists of women, who make up about 95 percent of our clients, with men representing only 5 percent. We support many women entrepreneurs, but it is essential for them to communicate their needs so we can develop tailored solutions for them.
One significant way we assist is by offering financial support without requiring upfront savings or contributions, which is a major barrier in traditional lending. Usually, before securing a loan from microfinance institutions (MFIs) or similar lenders, customers must save or contribute a portion of the loan amount. Often, this means selling part of their existing inventory to meet these saving requirements.
For example, if a customer has inventory worth N100,000 and wants to borrow N200,000, they are typically required to contribute a percentage of that loan by selling some of their stock.
However, our approach is different. As long as we complete the necessary Know Your Customer (KYC) procedures and understand the customer’s business margins through our system, we can provide support without demanding such contributions. This makes it easier for our customers, especially women in SMEs, to access loans without the unnecessary financial stress often imposed by traditional banks.
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