ONE ON ONE WITH AN ENTREPRENEUR - CAR/AUTO DEALER
A Lagos-based car dealer shares insights on business registration, accessing loans, and managing cash flow. The interview highlights real challenges SMEs face with banks, reliance on lending companies, and how strategic borrowing supports inventory purchases and profitability.
INTERVIEW
Q1. Please can you state the location in Lagos?
I sell cars in Alimosho, Lagos.
Q2. Are you a registered business?
Yes, I got registered in August 2026, even though I have been in the business for over 7 years.
Q3. Why did you wait so long before you registered?
I would say procrastination and lack of proper guidance. I have always had it in mind to register my business, but I kept procrastinating. However, I had to register my businesses when banks and some loan companies would end conversations whenever I needed a loan.
Q4. How often do you need loans?
Quite often. I usually do not need much. I usually just need money to complete the purchase of certain cars. It happens when I see a very good deal and I do not have enough money.
Q6. Where do you run to get loans?
I have a good relationship with some loan companies and they have been very helpful. I have some cars in my car lot so it is easy to use the cars as collateral.
Q7. What specific areas of your business require the most funding (inventory, equipment, staff, expansion, etc.)?
I usually just need fund to complete the purchase of a car.
Q8. How often do you experience cash flow shortages?
I manage my cashflow well. I hardly have cashflow shortage. In fact, sometimes, I take loans because I know spending all my money to buy a car will impact my cashflow negatively.
Q9. Have you tried applying for a loan from a commercial bank?
Why or why not?
I have tried but I got turned down because I did not have a business account. Then I found a loan company that was willing to provide me loans under the condition that I will register my business.
Q10. Do you feel the interest rates offered to SMEs are fair?
That is a tricky question. However, based on my experience, I believe that the rates are fair because I still make my profit after paying them their principal and interest.