Lendsqr, a fintech startup providing technology solutions for lending businesses, has announced a ₦1 billion working capital facility to support its clients, enabling them to offer more loans and scale their operations. Founded in 2018, Lendsqr serves clients like Kredi, Snapcash, and Blockacash and will provide these businesses with overdraft facilities to boost their lending capacity.
The facility, which charges 4% interest per month on disbursed amounts, allows lenders to avoid interest charges when their accounts have positive balances. According to Lendsqr CEO Adedeji Olowe, the company will monitor loan usage to manage risks effectively. This initiative addresses the high cost of funds and default risks that digital lenders face, which often lead to elevated interest rates for borrowers.
Recognizing that technology alone isn’t enough to scale lending businesses without sufficient capital, Lendsqr has stepped into the on-lending space, joining institutions like Lendable, the Nigerian Bank of Industry, and the African Finance Corporation.
The company aims to strengthen Nigeria’s lending ecosystem by providing accessible capital for licensed lenders, regardless of size. Lendsqr’s Head of Sales, Joy Bello, highlighted the broader impact of the initiative, emphasizing its role in fostering a more inclusive financial system.
Operating on a subscription model, Lendsqr charges between ₦20,000 and ₦1 million per month for Nigerian businesses, with international pricing set at $1,000 monthly. Looking ahead, the company plans to secure additional capital and expand its on-lending initiative to other countries where it operates.
With this development, Lendsqr is positioning itself as a key driver of growth in Nigeria’s lending sector, providing both the technology and capital needed to thrive.
