Cascador and Sterling Bank launch a $200M credit backstop fund to help Nigerian startups get bank loans

Cascador, a Nigeria-focused platform for growth-stage founders led by CEO Trish Thomas, and Sterling Bank have set up the SME Credit Backstop, a fund with a stated size of $200 million that aims to support up to $1 billion in bank lending at a time. The partners plan to raise the capital from philanthropic funders, impact investors and development finance institutions.

The fund does not lend directly. It covers part of Sterling's losses if a borrower defaults. Venture capital firms and studios nominate the businesses, and AI-driven underwriting checks whether they are ready for debt. Sterling runs its own checks, disburses the loans and collects repayments.

Loans start at up to $250,000 in local currency, with a plan to raise that to $1 million.

About one in five Nigerian businesses had a bank loan or credit line in 2025, against 36% globally, according to World Bank data.