Digital supply chain finance platform, Fiducia is set to improve the access of Nigerian SMEs to working capital.
At its 1st-ever Factoring Forum in Rivers State, Port Harcourt, industry players, financial gurus and other stakeholders gathered to look into how factoring can effectively tackle the lingering small and medium-sized enterprises cash flow problems.
For those who are not familiar with the business term, Factoring, it is simply a financial solution that lets businesses sell off their unpaid invoices to third-party financiers in exchange for quick cash. And on a global scale, the factoring market is expected to rise from $4.39 trillion in 2024 to $7.35 trillion by 2031.
At the forum themed “Unlocking Growth: The Power of Factoring for Business Expansion,” Fiducia’s Chief Executive, Imohimi Aig-Imoukhuede, revealed that the company is solely focused on simplifying and expanding SME access to funding via its digital platform.
According to him, small businesses across the country have to be empowered with faster access to funds, so Fiducia is simply stepping up to help such business owners navigate the challenges that come with accessing working capital nowadays.
“We aim to empower businesses by giving them quicker access to funds and helping them navigate the complexities of working capital finance,” he said.
With its marketplace model, the company aims to connect buyers, suppliers, and financiers, thereby aiding vendors to exchange their receivables for immediate cash to use as capital. This will not just guarantee liquidity for SMEs, it also smoothens supplier-buyer relationships, while enhancing financial growth for bigger companies.
The forum also broke down the increasing role of factoring as a solution to financing issues all over the world. According to The International Finance Corporation (IFC), almost 65 million businesses in developing nations battle financing needs totalling $5.2 trillion every year, therefore, platforms like Fiducia going out of their way to provide realistic solutions cannot be appreciated enough.
The Port Harcourt edition kicks off what is set to be a national campaign by the company to deepen financial inclusion in crucial economic sectors, including oil and gas, manufacturing, and agribusiness.
The Group Head, Commercial Banking Group (CBG) South-South at Access Bank, Evi Ufuoma Kanu, added that he felt privileged to be a part of the discussion because such a gathering is key to guarantee the development of any region.
“This platform is not only timely but strategic. It opens up real opportunities for SMEs working with large corporates to scale faster through easier access to finance,” she said.
