The development was confirmed by the Managing Director, CRC Credit Bureau Limited, Mr. Tunde Popoola in an electronic mail to PUNCH correspondent. He also listed other items that may be acceptable as collateral which includes movable capital equipment used in manufacturing or production.
Mr. Popoola said the use of landed properties and buildings will no longer be emphasised for small business operators who have valuable moveable assets that can be used to secure funding.
“The entry of the collateral registry as a credit or financial infrastructure into the Nigerian lending landscape is a welcome development that should be applauded, especially by the SMEs.
“Movable assets that are involved here include motor vehicles, motor bikes, movable capital equipment used in manufacturing or production such as sewing machines for fashion designers, sophisticated cameras for photographers, and others. It will also include receivables that can be confirmed for those selling on credit.
“The whole essence is for enterprises to be able to utilise their movable assets and tools as collateral for accessing loans. This shifts emphasis away from lenders just looking at fixed assets, especially land and real estate such as buildings and warehouses only.
“With this development, those who do not have landed properties but have movable assets can use them to secure funding while the assets are still in use.
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Source: PUNCH
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