Supply Chain Finance Solutions
Supply Chain Finance (“SCF“) is an increasingly crucial financial service in Nigeria, designed to optimise capital flow within supply chains. Given Nigeria’s strategic role as a regional economic hub, characterised by its large and growing population, rapid urbanisation, and diverse industries, SCF has significant potential to drive economic growth and enhance financial inclusion. However, the Nigerian SCF market faces substantial challenges, primarily due to the dominance of traditional banking institutions with limited expertise and rigid lending criteria, which hinder the provision of flexible and innovative SCF solutions.
Despite these challenges, recent years have seen a growing recognition of the importance of SCF in Nigeria. The Nigerian government has implemented various initiatives aimed at improving the business environment and increasing access to finance for businesses within the supply value chain. These initiatives include regulatory reforms, incentives for financial institutions to lend to ,small businesses and the establishment of specialised funds to support their access to financing.
Concurrently, the rise of innovative Financial Technology (“Fintech”) companies has introduced a range of SCF solutions in factoring, invoice discounting and supply chain lending. These fintech firms leverage advanced technologies like blockchain, artificial intelligence, and big data analytics to provide more efficient, transparent, and accessible financing solutions, bridging the financing gap and fostering a more inclusive financial ecosystem.
FMDQ Private Markets Limited (“FMDQ Private Markets” or “FMDQP“) is at the forefront of these developments, committed to improving its product and service offerings and developing specialised sectors within the private capital markets through the development of the FMDQP Supply Chain Finance (Local Purchase Order and Invoice Discounting) Platform (the “ARTIS DealRoom” or “Platform”). The ARTIS DealRoom offers a unique approach to addressing working capital challenges by providing businesses with access to affordable and flexible financing based on the strength of their supply chain.
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