How Zedvance Business is Powering businesses in Nigeria

How Zedvance Business is Powering businesses in Nigeria

Access to reliable financial services is key to success in a rapidly evolving business landscape, particularly for Nigeria’s small and medium enterprises (SMEs). As businesses strive to grow, expand, and meet the increasing demands of their markets, having the right financial partner can make all the difference.

At the start of 2024, when everyone was making new year resolutions, we set out on a course to design tailored products to power SMEs. After hours, days, and some nights of brainstorming and planning, in H2 of the year, we shifted focused to providing the innovative financial solutions we had spent the first half designing iteratively and optimising the process to ensure utmost service delivery.

Some of the products we were so excited to work on were; asset-backed loans, working capital loans, business accounts, and mobile banking services. Let’s deep dive a bit into some of these products and how they will help SMEs grow.

Asset-Backed Loans: Unlocking Growth Potential

One of the most significant challenges that many Nigerian businesses face is the lack of collateral to access traditional financing. This issue contributes to an estimated $32.2 billion financing gap for Nigerian MSMEs, according to PwC’s recent survey. We understood this challenge and came up with “asset-backed loans” as a flexible solution. By allowing businesses to use their assets as collateral, this credit facility enable SMEs to acquire much-needed equipment and expand their operations.

This approach not only mitigates the barrier of collateral requirements but also ensures that businesses can unlock their growth potential in sectors like agriculture, manufacturing, and retail—industries that are essential to Nigeria’s GDP, where SMEs contribute approximately 48% to Nigeria’s economic output

Working Capital Loans: Keeping Cash Flow Steady

Cash flow is the lifeblood of any business. However, inconsistent cash flow remains a significant obstacle for many SMEs in Africa. In Nigeria, the situation is more pronounced among smaller firms, with 59% of small enterprises reporting difficulties in accessing finance, compared to 35% of medium-sized firms and 11% of large SMEs, according to the Central Bank of Nigeria.

To ameliorate the effect of thin cashflow, we worked on offering working capital loans designed to help businesses manage their cash flow and finance short-term operational needs. Whether it’s purchasing raw materials, stocking up, or covering operational expenses, these loans provide businesses with the liquidity they need to maintain smooth operations.

This financial product is particularly beneficial for businesses experiencing seasonality or revenue fluctuations. By bridging the gap between current financial standing and future growth potential, this credit facility  has become a game-changer for countless SMEs in Nigeria.

Revolving Loans: Flexibility for Growth and Stability

A revolving loan is a flexible credit facility that allows businesses to borrow funds as needed, up to a predetermined limit, repay the borrowed amount, and then borrow again as needed. Unlike traditional term loans, it provides ongoing access to capital, enabling businesses to manage cash flow, finance inventory purchases, and address short-term financial needs.

This type of financing offers significant advantages over traditional loans. For example, businesses can access quick capital when they need it most, such as during seasonal peaks or to cover operational gaps. Moreover, since businesses only repay the amount they borrow (plus interest), revolving loans help maintain financial flexibility. It’s a revolving door of opportunity that allows companies to respond quickly to changing market conditions without being locked into long-term, inflexible repayment schedules.

Conclusion

In an era where access to capital can determine success or failure for many Nigerian businesses, Zedvance Business has emerged as a key player in addressing the financing gap, leveraging high mobile penetration rates, and supporting SMEs that contribute approximately 48% to Nigeria’s GDP, we are set on a course to make a  tangible impact.

Through innovative solutions like asset-backed loans, working capital loans, business accounts, and mobile banking services, Zedvance is enabling businesses to access the resources they need to thrive. For Nigerian businesses looking to accelerate growth and succeed in competitive markets, Zedvance Business is an invaluable ally, driving economic transformation in Nigeria leveraging its 10 years of experience in providing credit to retail markets (serving both public and private sector clients)