15/06/2026
I once borrowed over ₦120 Million from a bank.
And the business still failed.
Read that again.
Not ₦120,000.
Not ₦1.2 Million.
Over ₦120 Million.
And the business still failed.
Before some of you start wondering how a bank agreed to lend me that kind of money, let me explain something.
In Nigeria, banks do not wake up one morning and hand out over ₦120 Million to random people.
For a bank to approve that level of financing, especially under a vehicle financing arrangement, your business must already be doing serious numbers.
The funny part?
I didn't provide any traditional collateral.
No house.
No landed property.
No estate.
The real collateral was the business itself, its cash flow, transaction history, performance records, and my personal reputation.
That alone should tell you that the business was already growing rapidly.
Demand was already there.
Customers were already paying.
Everything looked successful from the outside.
And that is exactly why this lesson is important.
Because many entrepreneurs are chasing what almost destroyed me.
More customers.
More revenue.
More growth.
More funding.
And sometimes those things are exactly what kill a business.
Years ago, while I was in the University, I started a car rental business in Lagos.
At the time, I was very active in the music entertainment industry.
I had access to artists, event planners, artist managers, content creators, music video producers and corporate clients.
The demand was crazy.
People were booking vehicles almost every day.
The funny thing?
I didn't even own most of the vehicles.
Infact...
I started with a zero car then.
And here's exactly what I did....
I partnered with existing car rental operators.
A client would book through me.
I would source the vehicle from another rental company.
Everybody made money.
Simple.
At least that was what I thought.
Then the problems started.
A client would book a vehicle one week ahead.
Payment confirmed.
Everything agreed.
Then a few hours before pickup, the vehicle owner would suddenly call.
"Boss, the car is no longer available."
Sometimes they said the vehicle developed a fault.
Sometimes they said another customer offered more money.
Sometimes they simply changed their minds.
And guess who looked like the liar?
Me.
Not the vehicle owner.
Me.
I refunded customers.
I lost money.
I received terrible reviews.
Because I run this car rental business under a Corporate Name.
I damaged relationships.
And in business, damaged trust is often more expensive than damaged vehicles.
That was when I made what looked like a logical decision.
So....
I decided to buy my own fleet.
First vehicle.
Then second vehicle.
Then more demand came.
Then more customers came.
Then I approached the bank.
Eventually, through vehicle financing arrangements with an auto company, I borrowed over ₦120 Million.
At that point, many people would have thought:
"Iking has made it."
Business was growing.
Revenue was increasing.
Customers were everywhere.
Calls were coming in daily.
Everything looked beautiful from the outside.
But inside?
I was bleeding.
The business was bleeding.
Because something was happening that many entrepreneurs don't understand.
Revenue was increasing.
But pressure was increasing faster.
Loan repayments were heavy on me.
Maintenance costs kept rising.
Operational expenses increased.
Drivers needed supervision, even though most of my driver's where a Spy police officer's.
Customer expectations became higher.
So....
Every additional vehicle created additional responsibility.
And that was when I learned a lesson that completely changed how I see business.
Growth and profitability are not the same thing.
A business can grow and still die.
A business can have customers and still fail.
A business can generate revenue and still collapse.
Because:
Revenue is vanity.
Profit is sanity.
Cash flow is reality.
Read that again.
Revenue is vanity.
Profit is sanity.
Cash flow is reality.
Now....
You see why I am Building the new Billion Naira Company Challenge Slowly, and also why I have refused to accept any form of financing on Fokona at this stage.
Because....
The mistake many entrepreneurs make is believing:
"If I can just get more customers, all my problems will disappear."
No.
Sometimes more customers create more problems.
Because every customer adds pressure.
Every customer creates expectations.
Every customer exposes weaknesses in your operations.
And if your systems cannot handle growth...
Growth becomes dangerous.
Today when somebody tells me:
"Iking, I just need capital."
I usually smile.
Because I once believed the same thing.
I thought more money would solve everything.
It didn't.
Money ONLY magnified everything.
The strengths became bigger.
The weaknesses became bigger.
The mistakes became bigger.
The pressure became bigger.
Let me be honest:
Most businesses don't fail because they lack capital.
Most businesses fail because their systems cannot properly manage the capital they receive.
A bad system with more money becomes a bigger bad system.
A weak business with more money becomes a more expensive weak business.
As an Investor.....
This experience taught me one lesson I still use today when evaluating businesses, startups and investment opportunities.
Before asking:
"How do I get funding?"
Ask:
"Can my business survive funding?"
Because money is not always the solution.
Sometimes better systems are.
Sometimes better operations are.
Sometimes better management is.
Sometimes better financial controls are.
Sometimes patience is.
And sometimes the most dangerous thing that can happen to a struggling entrepreneur is receiving a large amount of money too early.
That is one of the reasons I think like an entrepreneur first before thinking like an investor or accountant.
Investors follow numbers.
Accountants interpret the numbers.
But entrepreneurs understand where the numbers come from.
There is a difference.
A good entrepreneur understands that behind every revenue figure is a customer.
Behind every customer is a problem.
Behind every problem is a system.
And if the system breaks, the numbers eventually break too.
So... What am I trying to say?
Don't chase capital first.
Build systems first.
Because when systems are strong, capital accelerates success.
But when systems are weak, capital accelerates failure.
And trust me...
That lesson cost me over ₦120 Million to learn.
My name is Iking Ferry,
Founder, Pulseford Business School
A Financial Literacy Advocate and Investment Strategist on a Mission to Build Financially Free Nigerians Through the Right Knowledge.
