Fiducia Harps on SMEs Supply Chain Finance to Drive Economic Growth

Kayode Tokede

Fiducia Data Services Limited has expressed that it is poised to provide the necessary Supply Chain Finance for Small and Midsize Enterprises (SMEs) in the country to boost businesses activities  and, by extension, drive the economy.

This was stated at the Fiducia Factoring Forum held in Lagos at the weekend under the theme, “Unlock Your Growth & Boost Your Business.”

Giving her keynote address, the chairman of Fiducia Data Services, 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 major gap in actually addressing financing for SMEs and Supply Chain Finance provides a unique method for us to be able to address that issue.

“You will find that a lot of 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 the presentation of your invoice. They’re not likely to give you an upfront advance for the supply of those goods and services. 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 themselves. So specifically, I’ll just dive into maybe five of those key benefits. Number one is improving cash flows.

“The most immediate advantage is that you don’t have to tie down your money in stock; you can be able to pay in advance or on time. So, the SME can go on to do other businesses. It enables the expansion of the number of suppliers that corporates have. You’re able to get your financing faster, and that helps to increase income for the company. It also enables low-cost financing.”

Lawson, who is also the Managing Director of Edfin Microfinance Bank, added, “One of the other advantages in Nigeria is to deal with the fluctuating exchange rates, interest rates, and economic condition, is that you already know that you’re getting your money fast.”

Reiterating the value of the platform that Fiducia brings to the market, the Managing Director/ Chief Executive Officer, Imohimi Aig-Imoukhuede, posited that it can provide much-needed capital for SMEs.