Micro, Small and Medium Enterprises (MSME’s) are generally regarded as the engine of economic growth and equitable development in developing economies, Nigeria inclusive.
Despite this catalytic role of MSME’s in economic emancipation of countries, one of their major operational challenge in Nigeria include access to credit from Banks. It is in the light of this, that
Woodhall Capital introduced Factoring Line of credit, as one of the forerunners of this unique value proposition in Nigeria and West Africa.

Factoring, in a nutshell is a way for businesses to fund their cash flow by selling their invoices to a third party (a factor/or factoring company) at a discount. Woodhall Capital’s Factoring Line of
credit is targeted at suppliers seeking to reduce their days sales outstanding on receivable from completed transactions with buyers.

Parties include:
Supplier: A company located in Africa, which has executed a Factoring Agreement with Woodhall Capital

Buyer: Any private or Government entity with which suppliers have transacted a sale of goods or services and that has resulted in the buyer’s obligation to pay suppliers (the Receivables)

Factor: Woodhall Capital Limited
Local Bank: This bank will hold the disbursement Account and Collection Account.

With the current rise in global inflation levels, higher costs of raising finance and the dynamics of the business environment, MSME’s need to be more creative in the efficient management of
working capital in order to boost productivity and increase profitability. Woodhall Capital Limited’s Factoring product promises cheaper and easier access to working capital financing on the back of the Supplier’s Trade receivables and/or the Buyer’s Trade payables.