The Lagos-based accelerator, Cascador, in collaboration with Nigerian commercial bank Sterling Bank, has launched a $200 million SME Credit Backstop Fund to help Nigerian small businesses get larger, longer loans.
The fund will share credit risk with lenders. Cascador says the model can support up to $1 billion in outstanding credit capacity.
It targets debt-ready businesses that are struggling to access debt. They can first get local currency loans worth $250,000, and the fund aims to unlock loans of up to $1 million once it is fully funded.
“By sharing risk with lenders and translating community trust into a bankable signal to lend, the fund can help more businesses access what they need to scale and create jobs,” said Trish Thomas, CEO of Cascador.
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The backstop capital is meant to come from philanthropic funders, impact investors and development finance institutions.
The launch follows Cascador’s white paper, The Multiplier Model. Cascador says only 22% of businesses in Sub-Saharan Africa hold a bank loan or credit line below the global average of 36%.
Obinna Ukachukwu, Group Executive at Sterling Bank, said the fund brings together businesses recommended by venture funds and studios that know them.
“This combines a stronger borrower pipeline with structured assessment and ongoing monitoring, giving us greater confidence to provide larger, longer-term loans,” he said.
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The fund will run through Riverwell Platform Holding Limited, which Cascador describes as UK-owned, and Riverwell Platform Services Nigeria. The reserve capital will be held separately. Ukachukwu will serve as a director on the Riverwell platform.
The model builds on the Catalytic Fund that Cascador and Sterling piloted. Cascador says it has supported 80 ventures since 2019 and that it has raised over $150 million.