Categories: Digital Marketing

Fintech startup Lendsqr is launching ₦1 billion working capital for lenders

Lendsqr, a startup that provides all the software companies need to start a lending business, will now offer its clients a line of credit to help them provide more loans to grow their businesses. Founded in 2018, Lendsqr counts Kredi, Snapcash, Blockacash among its clients and will offer these businesses overdrafts from a ₦1 billion purse.

The company, which claims to have “thousands of lenders servicing millions of clients,” will charge qualified lenders 4% per month, and claims interest will be collected only on the portion of the facility that’s disbursed to end users, i.e., retail lenders.

“If they get repayments from their borrowers and their account swings into positive, they don’t even pay any interest at all,” said Lendsqr CEO Adedeji Olowe, adding that Lendsqr will track how the loan is used to identify and address potential risks.

For digital lenders that offer collateral-free personal loans, the cost of funds plays a significant role in loan pricing. Coupled with the risk of defaults, customers sometimes have to bear the brunt of high interest rates. So, while technology remains crucial to success for digital lenders, relatively cheap funds are the holy grail.

“For a long time, we believed that providing top-tier lending technology was enough to help lenders scale,” said Adedeji Olowe, CEO of Lendsqr. “But technology alone cannot scale a loan business without adequate capital. That’s why we decided to go a step further and solve this critical need.”

With this offering, Lendqr now joins a coterie of on-lending institutions—lenders who lend money to lenders—such as Lendable, the Nigerian Bank of Industry, and the African Finance Corporation.

“We’re excited to be the catalyst for growth in Nigeria’s lending sector. Our onlending initiative isn’t just about providing capital. It’s about enabling a stronger and more inclusive financial ecosystem where every licensed lender, big or small, can thrive,” Joy  Bello, Head of Sales at Lendsqr.

Lendsqr runs a subscription model with packages ranging from ₦20,000 to ₦1 million per month. For non-Nigerian businesses, the product is priced at $1,000 per month.

“By next year, we would have closed some of the ongoing capital conversations and should see other lenders provide 20x capital to more lenders,” Olowe added. “We are also looking at extending this to the other countries where we are either operational or available.”

Get the best African tech newsletters in your inbox

ObadeYemi

Adeyemi is a certified performance digital marketing professional who is passionate about data-driven storytelling that does not only endear brands to their audiences but also ensures repeat sales. He has worked with businesses across FinTech, IT, Cloud Computing, Human Resources, Food & Beverages, Education, Medicine, Media, and Blockchain, some of which have achieved 80% increase in visibility, 186% increase in month on month sales and revenue.. His competences include Digital Strategy, Search Engine Optimization, Paid per Click Advertising, Data Visualization & Analytics, Lead Generation, Sales Growth and Content Marketing.

Recent Posts

“We made zero revenue in our first three years”: Day 1-1,000 of Izesan!

Few founders dare to take on the challenge of preserving Africa’s linguistic heritage. Anthony Otaigbe…

1 day ago

Fincra gets South African payments licence to deepen African reach

Fincra, a payment infrastructure provider that serves remittance companies and businesses, has obtained a Third…

3 days ago

Startups on Our Radar: 10 African startups rethinking ride-hailing, credits, and banking no one’s talking about yet

Startups on Our Radar is a bi-weekly column that spotlights new startups across Africa taking…

3 days ago

KPI dashboards & how to use them in your marketing

I’ll never forget the first time someone asked me for a marketing performance update. I…

3 days ago

Creating a B2B buyer journey map in 8 steps

When I started working with B2B companies, I quickly realized that understanding how your customers…

3 days ago

Forget Photoshop: Google AI Studio is the new editing powerhouse

Image editing used to mean opening Photoshop, wading through complex tools, and spending hours on…

4 days ago