…Asset-backed lending can unlock capital for entrepreneurs as traditional bank credit tightens
Eziefula Ezichi, Founder and Chief Executive Officer of Pawn NG, has called for wider adoption of alternative financing models, arguing that asset-backed lending can help bridge Africa’s growing credit gap and improve access to capital for entrepreneurs and investors.
Ezichi made the call as the alternative finance company announced plans to expand its operations across West Africa amid tighter lending conditions and rising borrowing costs in the conventional banking sector.
Founded nearly a decade ago, Pawn NG provides short-term loans secured by high-value assets such as luxury watches and fine jewellery, allowing clients to access immediate liquidity without selling their valuables.
According to Ezichi, many businesses are finding it increasingly difficult to obtain timely financing from traditional financial institutions due to stricter lending requirements. “We are witnessing a fundamental change in how assets are viewed,” he said. “High-value physical possessions are no longer seen merely as static stores of wealth, but as dynamic financial instruments capable of generating liquidity on demand.”
He explained that luxury assets can serve as viable collateral for short-term financing, enabling entrepreneurs and investors to raise capital while retaining ownership of their prized possessions.
Ezichi stressed that transparent asset valuation is critical to building trust in alternative lending and broadening access to finance for individuals who may lack conventional collateral such as real estate.
He noted that recognising a wider range of assets could help improve financial inclusion by giving more entrepreneurs access to working capital when they need it most.
According to him, flexible financing solutions can complement traditional banking by providing faster access to funds for businesses navigating cash flow challenges.
His remarks come amid growing calls for more diversified financing options across Africa as businesses grapple with tighter credit conditions, higher interest rates and more stringent lending standards.
Analysts say limited access to affordable credit remains one of the biggest obstacles to the growth of small and medium-sized enterprises (SMEs) across the continent, underscoring the need for innovative financing models.
Ezichi believes alternative asset-backed lending can play an increasingly important role in supporting entrepreneurship, investment and economic growth as African economies continue to evolve.
He added that expanding financing options beyond traditional bank loans would strengthen the continent’s financial ecosystem and provide businesses with greater flexibility in accessing capital.
