Factoring and Supply Chain Finance Limited has secured the Central Bank of Nigeria’s operating license to start business transactions in factoring and trade receivables finance.
In a statement, it defined factoring as a financial transaction and a type of debtor finance in which a business sells its accounts receivables to a third party at a discount.
With this license, it added that the FSCF was situated to act as a channel of liquidity in the underserved receivables finance market.
This is an opinion to support Small and Medium-scale Enterprises and large corporates that need to reduction its receivables prior to the completion of payment cycles.
Lanre Bakare, the Chief Executive Officer, Factoring and Supply Chain Finance Limited, said, We are excited to be a innovator in the receivables finance space in the country.
With the support from the CBN, we look forward to supporting both SMEs and large corporates to turn their unpaid invoices into cash and remove the long account receivable cycles.
The Chairman, Board of Directors, FSCH, Chris Oshiafi, said, “We are encouraged by the growth and development of what this license represents.
We are hopeful 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 represents the interests of the global open account receivables finance industry.