Alternative finance startup – Capsa Technology has signed a new partner for its invoice factoring product. The company announced Tuesday that it signed a collaboration agreement with food and beverage giant UAC Foods Nigeria recently.
The news is coming only a few weeks after the company announced its partnership with one of the leading agri-businesses, OLAM Group.
Capsa’s partnership with UAC Foods will open up more financing opportunities for suppliers under the UAC Foods network all over the country. This means that UAC Foods suppliers will now have the option to convert their invoices to immediate cash on Capsa’s platform – getcapsa.com without having to wait out the mandatory payment cycle or terms included in their contract with UAC Foods.
Capsa Co-Founder and Chief Executive, Mustapha Suberu, said in a statement that the collaboration between the two companies will open flexible funding opportunities for suppliers under the UAC Foods network.
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“Our collaboration with UAC Foods demonstrates the increasing relevance of our solution in building a sustainable ecosystem for businesses in Nigeria,” Suberu stated.
According to the CEO, UAC Foods suppliers can leverage the flexibility of Capsa’s platform to easily boost their working capital. “In addition, UAC Foods suppliers can now comfortably expand their businesses in a cost-effective way compared to traditional financial methods.”
Also speaking on the partnership, UAC Foods managing director/CEO, Dele Ajayi, said the collaboration will be a win-win for all the parties involved.
“There are financial implications to effective and quality service delivery which impact the performance of our suppliers in working with us. Our collaboration with Capsa Technology would potentially provide our suppliers, especially the SMEs amongst them, with timely and affordable financing to meet their working capital requirements and ultimately result in a win-win for all parties involved.”
Capsa was founded to create access to competitive financing for small businesses in Africa. Since its formal commencement of operations in July 2021, over $3 million worth of invoices has been traded on its platform from suppliers of Olam, Crown Flour Mills, OK Foods, Stanbic-IBTC amongst others.
