Collins Sefa Advans Ghana Savings and Loans has introduced a new overdraft facility designed to give micro, small and medium-sized enterprises (MSMEs) faster access to short-term working capital.
The product was launched at a ceremony at the Fiesta Royale Hotel in Accra and forms part of the institution’s broader efforts to expand flexible financing for small businesses.
Pilot Begins in Four Branches
The overdraft is currently being piloted at Okaishie, Kaneshie, Koforidua and Roman Hill (Kumasi) branches. It is open to current clients, new customers, and businesses that bank with other financial institutions but can provide verifiable financial records.
The facility is aimed at supporting businesses facing urgent liquidity needs, including clearing goods, financing discounted inventory, meeting operational obligations or addressing short-notice expenses.
Product Developed Through Client Consultations
Speaking at the launch, Managing Director Guillaume Valence said the overdraft was created following extensive engagement with Advans’ nationwide client base.
“Our clients consistently told us that while long-term loans support expansion, they often face immediate cashflow needs that cannot wait,” he said. “This overdraft is designed to give MSMEs the agility to act in the moment without eroding their working capital.”
Mr. Valence added that the product includes a “return-to-zero” requirement and strict monitoring to promote responsible borrowing.
GIZ Collaboration Targets MSME Liquidity Gaps
The product was developed in partnership with GIZ, the German development agency, which is supporting financial institutions across Ghana to design SME-focused instruments.
Cynthia Odonkor, Component Manager at GIZ Ghana, said timely working capital remains one of the biggest constraints for MSMEs.
“A delayed payment or sudden expense can destabilise even a promising business,” she said. “This overdraft offers flexible short-term liquidity while incorporating responsible lending practices.”
Advans Highlights SME Commitment and Expanding Reach
Barbara Odei, Chief Sales and Development Officer at Advans Ghana, noted that the institution serves more than 146,000 customers through 21 branches and digital channels, with a lending portfolio exceeding GH¢540 million.
She added that 61% of the institution’s loan clients are women, and the overdraft is expected to widen access to credit for more entrepreneurs nationwide.
Business Community Welcomes Flexible Credit Option
The launch drew traders, manufacturers, importers, agribusiness operators, logistics firms, service providers and women-led enterprises seeking tools to navigate fluctuating costs, exchange rate pressures and seasonal market cycles.
The overdraft complements Advans Ghana’s growing suite of SME solutions including term loans, working-capital loans and a recently introduced spot loan for urgent financing.
Advans expects gradual uptake from existing borrowers as well as new interest from businesses searching for non-bank alternatives for short-term credit.
