Stanbic IBTC pioneers digital supply chain financing in Nigeria through CycleFlow partnership
Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, has reinforced its position as a leader in trade by becoming the first bank in Nigeria to partner with CycleFlow, a supply chain finance platform powered by C2FO and backed by the International Finance Corporation (IFC).
The platform will connect the Bank with participating corporate buyers and their MSME suppliers, enabling the Bank to offer affordable short-term financing to suppliers by purchasing and discounting invoices accepted for payment by the corporate buyers. These transactions will allow MSMEs to improve working capital by converting sales receivables immediately to cash by leveraging the stronger credit profile of the corporate buyers rather than relying on the creditworthiness of the MSMEs.
This initiative is timely as businesses across Nigeria grapple with high interest rates, unequal or delayed access to financing, increased competition and prolonged payment cycles. It will also help level the playing field among larger and smaller suppliers enabling them to reach their full potential. The corporate buyers benefit through improved supply chain resilience, improved supplier relationships, and efficiencies gained by automating payment processes.
Eric Fajemisin, Executive Director of Corporate and Transaction Banking, Stanbic IBTC Bank, highlighted the transformative potential of this partnership: “We recognise that robust supply chains are the backbone of a thriving economy. Our collaboration with IFC and C2FO is about empowering suppliers, particularly SMEs, by providing them with the flexibility to manage their cash flow effectively. This means they can choose to receive payments within days instead of waiting months, all without incurring additional debt. This represents a significant shift towards trade enablement and underscores our commitment to fostering an inclusive economy that benefits all stakeholders”.
Jesuseun Fatoyinbo, Head Transaction Banking, Stanbic IBTC Bank, stated, “Our commitment to enhancing the business environment in Nigeria is unwavering. With the adoption of CycleFlow, we are not just providing a service; we are creating opportunities for growth and innovation. This initiative is designed to level the playing field for SMEs, enabling them to thrive in a challenging economic landscape. By facilitating early payments, we are helping businesses to become more resilient and agile, fostering a culture of collaboration that ultimately benefits the entire economy.”
In line with Nigeria’s economic objectives, Stanbic IBTC Bank’s initiative promotes local content and aims to bolster growth in the manufacturing sector, positioning Nigeria for greater engagement in the African Continental Free Trade Area (AfCFTA). The bank’s commitment to harnessing innovative financial solutions reflects its broader strategy to address the challenges faced by local businesses and support national economic development.
As the nation embarks on a journey towards economic recovery and growth, initiatives such as this are poised to revolutionise the way suppliers and corporate buyers operate, creating an enabling environment for greater financial stability and success in Nigeria’s increasingly competitive market.
