Nigerian fintech facilitates N300m funds to MSMEs in July
As part of its efforts to help Micro, Small and Medium Enterprises (MSMEs) access working capital, Nigeria’s first invoice factoring platform, GetCapsa, has disclosed that it provided access to funds for MSMEs to the tune of over N300 million in July.
According to the fintech company, which was incorporated in November 2019, its platform enabled the MSMEs to trade their unpaid invoices to corporate and individual investors for cash within 48 hours.
In the last eight months, Capsa’s unique platform helped small and medium-sized businesses in the country trade their unpaid invoices for immediate cash and at very competitive rates.
Speaking on the development, Co-founder/Chief Commercial Officer of Capsa, Segun Dada, said “The ability to secure quick and affordable working capital remains a huge struggle for most businesses, Getcapsa is fixing this with our innovative digital platform. With just a few clicks, businesses can unlock much-needed financing and convert their waiting time to cash.”
Also, he noted that Capsa achieved the feat in collaboration with the top multinational brand and financial institutions like Olam group, Stanbic IBTC Bank and Vetiva Capital.
On his part, the Co-founder/CEO of Capsa, Mustapha Suberu, said with Capsa, businesses that have unpaid invoices with long payment days can convert them to cash through the platform’s quick and seamless process in 48 hours or less, instead of taking complex, opaque, high-interest and high-risk loans that take up to four weeks for approval and funding.
“We are the next big thing coming out of the alternative financing space, and we are bringing more exciting and innovative ways for small businesses to fund their operations.
“We are allowing small businesses to access funds without taking loans from banks or other loan sharks out there and for the first time, businesses will have the power to determine what their financing cost would be with just a few clicks, and this is thanks to Getcapsa.
“For financiers and investors, Capsa provides a low risk, short term investment opportunity. Investors can purchase the claim to MSMEs’ verified invoices at a discounted rate and get their returns within 30 – 90 days.
“The company has developed an insurance feature that will allow investors on the platform to insure their investment with one of Nigeria’s leading insurers, providing additional cover for investors. This feature will roll out in September.
“The blockchain technology on which Capsa is built provides multiple benefits for its users. It enhances the transparency of the system and secures the validity of data. Both buyers and sellers of invoices have access to real-time information with very minimal risks of fraud,” he said.
Meanwhile, Mustapha disclosed that the company intends to expand across Sub-Saharan Africa, spreading its reach to Nairobi and Accra in the coming months, and would continue to identify and include other viable assets for trading on its platform.
“Our platform is revolutionary. It is the future of financing for businesses, especially MSMEs in sub-Saharan Africa. With our solution, MSMEs don’t have to take expensive debt or dilute their holdings to fund their working capital and growth needs. Today, we are starting with invoices, but other assets will be traded on the platform soon,” he added.