Fiducia Data Services Limited, is set to support business and growth using supply chain finance.
The firm is a digital supply chain finance marketplace that connects three types of participants- corporates buyer, supplier and financier on a digital platform to trade receivables and carry out other supply chain finance.
The disclosure was made at the Fiducia Factoring Forum in Lagos.
Supply chain finance is a financial arrangement that allows buyers to extend payment to suppliers while giving suppliers the option to receive payment early. Supply Chain Finance is also known as supplier finance or reverse factoring.
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In her address, Chairman, Bunmi Lawson, said: “Despite all the technology that we’ve had, you will find that SME financing is still not adequately financed. There’s a gap in addressing financing for SMEs and supply chain finance provides a unique method.
“Most large companies have in their books supplier liabilities that have not yet been paid. When you go to most multinationals, even after you supply them, they’re going to ask you to wait 90 days from presentation of your invoice. They’re not likely to give you an upfront advance for the supply.
‘‘However, SMEs need funding to execute this. Supply chain financing helps to unlock the hidden potential in that sector. So, it provides increased profitability to SMEs.”
‘‘It allows large companies to finance their supply chain without having to look for funding…’’