Invoice Financing In Nigeria

Why Invoice Financing is a Better Choice Than Traditional Loans for Your Business

Have you ever tried to secure funding for your business? What was your experience? Okay, I’m glad you know all too well the challenges of securing funding for your business in Nigeria. As you know, traditional loans can be hard to come by, and when you do manage to get one, the process can be slow and frustrating. This is why you need to embrace invoice Financing as a better choice for your business. 

First, let me tell you about Tayo, a Nigerian business owner. Tayo owned a small manufacturing company that produced handmade furniture. One day, he had a big order from a local hotel, but he didn’t have the cash on hand to purchase the materials needed to fulfill the order. So, he went to his bank to ask for a loan, but the bank told him he didn’t qualify. Sad, right? At this point, he was at a loss and thought he might have to turn down the order, but then he heard about invoice financing.

What is Invoice Financing?

Invoice financing is a type of financing that allows a business to use its outstanding invoices as collateral to obtain a loan from a lender, such as Earnipay. In this process, a company or customer can receive a loan based on the value of their accounts receivable or outstanding invoices.

After hearing about this opportunity, Tayo decided to give it a try, and he was pleasantly surprised by the quick and easy process as he was able to receive the funds needed within a few days.

According to a survey by the Federal Reserve, 70% of small businesses that apply for a loan are either denied or do not receive the full amount requested. On the other hand, invoice financing is a $3 trillion industry globally, and in Nigeria, it is currently gaining popularity with a company like Earnipay offering this service. 

Now, let’s talk about why invoice financing is better than traditional loans for your business. 

  1. Faster access to capital: Like Tayo’s experience, the process of getting a traditional loan can be slow and frustrating as banks often require extensive documentation and collateral. Most times, the approval process can take weeks or even months but with invoice financing, you can get cash quickly, often within a few days of submitting your invoices.
  2. No collateral required: Unlike traditional loans, which often require collateral such as property or equipment, invoice financing is secured by your outstanding invoices. This means that with Earnipay, you don’t have to put up any assets as collateral, which can be especially helpful for small businesses that may not have a lot of assets.
  3. Easier qualification: Traditional loans can be difficult to qualify for, especially for businesses that have a limited credit history or are in industries that are considered risky. Invoice financing, on the other hand, is often available to companies with a solid customer base and a history of invoicing- Earnipay makes the process very easy. 
  4. Flexibility: With a traditional loan, you have to borrow a set amount of money and pay back with interest over a fixed period of time but with invoice financing, you can choose which invoices to finance and how much funding to receive. This can be useful for businesses that have unpredictable cash flow or seasonal fluctuations in revenue.
  5. Improved cash flow: Invoice financing can help improve your business’s cash flow by providing a steady stream of working capital. This can allow you to pay suppliers on time, take advantage of early payment discounts, and invest in growth opportunities.

Don’t you like the sound of ease? I know, right? With Earnipay’s Invoice Financing, you can receive up to 80% of the invoice amount upfront, giving you immediate access to working capital. 

By leveraging the value of your outstanding invoices, you can cover your operating costs, invest in growth opportunities, and focus on what matters most – running your business. 
With our streamlined financing process and competitive fees, Earnipay is committed to helping your business succeed. Want to get started with us? Click this link now!

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