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A new working capital platform, CycleFlow, has been launched in Nigeria to address persistent financing challenges faced by small businesses, enabling companies to convert unpaid invoices into immediate cash.
Powered by C2FO and supported by the International Finance Corporation (IFC), the platform connects suppliers, large corporates, and financial institutions within a single ecosystem. It is designed to unlock liquidity for micro, small, and medium enterprises (MSMEs) without the need for collateral.
At full scale, CycleFlow is projected to unlock between $25 billion and $30 billion annually in business financing across Nigeria.
Chairman of CycleFlow Nigeria, Segun Ogunsanya, said the platform addresses a long-standing challenge where small businesses often wait between 60 and 120 days to receive payment after delivering goods or services—creating cash flow constraints that limit operations and growth.
Under the model, once a buyer approves an invoice, the supplier can opt for early payment at a discounted rate, with funding provided either by financial institutions or the buyers themselves.
“By enabling immediate access to funds locked in accounts receivable, we are not just financing businesses; we are powering economic growth across the entire ecosystem,” Ogunsanya said.
Across Africa, MSMEs account for approximately 90 per cent of businesses and contribute up to 80 per cent of employment. Despite this, access to credit remains limited, particularly in Nigeria, where many small businesses struggle to meet traditional lending requirements such as collateral and credit history.
CycleFlow addresses this gap by linking financing to the creditworthiness of large buyers rather than the suppliers themselves, enabling faster access to funding at more competitive rates.
According to the IFC, every $1 million in SME financing can generate an average of 16.3 direct jobs over two years. At scale, the platform could support more than 480,000 direct jobs in Nigeria, with significantly higher indirect employment effects.
Mohamed Gouled, Vice President for Products and Clients at IFC, noted that the platform fundamentally changes how businesses access capital.
“Millions of MSMEs across Africa are sitting on receivables they cannot convert into much-needed capital to grow and hire. This platform changes that equation,” he said.
The system eliminates many of the barriers associated with traditional lending, including loan applications, collateral requirements, and lengthy approval timelines. Instead, suppliers retain control over when to access funds and at what cost.
Founder and CEO of C2FO, Alexander Sandy Kemper, described the Nigeria launch as a strategic entry point into broader emerging markets.
“This launch kicks off our broader strategy to deliver affordable liquidity solutions across Africa and other emerging markets,” he said.
Already operating globally, the platform processes millions of invoices daily and has facilitated hundreds of billions of dollars in working capital financing.
CycleFlow’s entry into Nigeria aligns with ongoing efforts to strengthen support for MSMEs, which remain critical to job creation and economic development but continue to face significant funding constraints.
By integrating buyers, suppliers, and financiers into a unified system, the platform is expected to improve supply chain liquidity, reduce payment delays, and enhance overall business productivity—allowing SMEs to access funds in days rather than months.
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