Case study
FINVERITY
How did Fulcrum introduce, automate and expand buyer-led financing in Nigeria?
Finverity Team
The Challenge
In Nigeria, the opportunity for supply chain finance is big but underdeveloped.
The International Finance Corporation (IFC) estimates that the market for open account trade finance and SCF in Nigeria is around ₦2.7 tn. Currently, only 24% of the market is serviced by SCF, which is where platform Fulcrum sees the opportunity to lift Micro, Small, and Medium Enterprises (MSMEs) in Nigeria to a different level altogether.
The problem is, most banks offer only two SCF products: distributor finance and seller-led financing (receivable discounting/invoice financing). Fulcrum wanted to deepen Payables Finance and reduce the turnaround time from financing request to issuance down from 5-14 days to 48 hours.
The Solution
Fulcrum plans to unlock payments for suppliers by helping its users and banking partners fully automate at least half of transactions.
It did this by partnering with FinverityOS, a single system to help banks and NBFIs manage any open account trade finance & SCF product digitally.
Finverity’s trade finance experts delivered value during implementation through a series of trainings, pre- and post-delivery, giving the Fulcrum team the tools to tailor the system to their clients, their teams and their processes.
Better yet, Fulcrum and its partners can now manage all open account trade finance & SCF products from one system. It even includes a feature to create your own custom product, and automates the manual processes and outdated, fragmented systems can continue to frustrate so many banks & NBFIs.
What they said
“The SCF market in Nigeria is largely untapped, and dominated by inefficient systems. Our integration with FinverityOS has helped us focus on our core business strategy - making connections between funders, buyers and suppliers”
Fulcrum
Test
?
What’s next?
Fulcrum, through its partnership with banks and other funders, is targeting up to 0.1% of the SCF market in its test phase; with plans to expand to 1% as the market deepens.
Many thousands SMEs in Nigeria and beyond, thanks to Fulcrum’s partnerships with anchors and funders, can finally access finance from non-traditional channels. Together, Fulcrum and Finverity are fully committed to bridging the working capital gap in the region.
Only leading banks can finance every stage of the supply chain.
Are you among the majority (70%) of local and regional banks turning down opportunities due to operational limitations? If yes, Finverity can help in as little as 30 days!
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The only system that supports all open account trade finance & SCF products
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