FSCF to expand portfolio with CBN’s factoring licence
Factoring and Supply Chain Finance Limited (FSCF) has secured the Central Bank of Nigeria’s operating license to commence business transactions in factoring, trade receivables finance and other related services.
With the license, the firm, in a statement, noted that it was positioned to act as a channel of liquidity in the underserved receivables finance market.
This is with a view to supporting Small and Medium-scale Enterprises and large corporates that need to discount its receivables prior to the completion of payment cycles.
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivables (invoices) to a third party (called factor) at a discount.
The Chief Executive Officer, Factoring and Supply Chain Finance Limited, Lanre Bakare, said: “We are excited to be a pioneer in the receivables finance space in the country. With the support from the CBN and other Development Finance Institutions, we look forward to supporting both SMEs and large corporates to turn their unpaid invoices into cash and eliminate the long account receivable cycles.
The Chairman, Board of Directors, FSCH, Chris Oshiafi, said, “We are encouraged by the progress and the significance of what this license represents. We are optimistic that this will improve trade and by extension, boost the Nigerian economy.”
According to the statement, the FSCF is a Pan African capital holdings company and a member of the Factors Chain International, a non-profit association based in the Netherlands and representing the interests of the global open account receivables finance industry.
“FCI has nearly 400 members based in 91 countries, and form a trading network that provides cross border factoring services that allows members to finance foreign receivables in a safe and secure manner,” it stated.
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