Smart borrowers are increasingly using credit as a tool to build wealth and grow businesses, while others remain trapped in debt because they borrow for consumption rather than income-generating activities, according to Gloria Onosode, director of Enterprise Sales at FairMoney Business.
Speaking to BusinessDay, Onosode said the long-held perception of debt as a sign of financial distress is changing as more entrepreneurs and professionals recognise that responsible borrowing can accelerate business expansion, increase productivity and improve long-term financial outcomes when tied to clear repayment plans and productive investments.
She said the difference between successful borrowers and those caught in debt cycles lies not in the act of borrowing itself, but in how the borrowed funds are deployed, noting that loans used to acquire business assets, finance inventory or invest in skills can create returns that exceed their financing costs.
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“For many years, debt was seen as something to avoid at all costs. But borrowing, when done responsibly and within one’s repayment capacity, can become an important financial tool for building long-term wealth,” she said.
