It was mid-morning in Kano, and the sun, relentless as always, bathed the city in a golden haze. Aisha Bello, a second-generation textile manufacturer, leaned back in her office chair, staring at the delivery schedule for the week. Her family’s business, Bello Textiles, had survived decades of economic ups and downs, but now, with markets expanding and demand outstripping capacity, survival wasn’t enough.
Aisha wanted growth.
Her suppliers demanded upfront payment for raw cotton, while her buyers—a mix of local merchants and international retailers—insisted on extended payment terms. For months, she had juggled cash flow challenges, patching the gaps with personal savings and short-term loans. It wasn’t sustainable, and the cracks were starting to show. One missed payment could mean delays, reputation damage, or worse—a halt in production.
One of her friends, an agribusiness entrepreneur, suggested she explore supply chain financing (SCF). “It’s not just loans,” he’d said. “It’s like oil for the gears of your business. It keeps everything moving smoothly.”
SCF improved her cash flow, but without a strong risk management strategy, challenges still surfaced.
A delay from one of her buyers disrupted payments, revealing gaps in her planning.
The first step: Understanding risk
Aisha’s first attempt at SCF seemed promising. A fintech platform offered her the option to finance supplier invoices. Her cotton suppliers got paid upfront, and she could repay the funds after fulfilling her buyers’ orders. Business picked up, and for three months, everything was seamless.
One of her buyers, a mid-sized retailer in Lagos, delayed payment by 45 days. It wasn’t malicious—retail sales had slumped, and they were scrambling to stay afloat. But for Aisha, the delay triggered a chain reaction. The fintech company began charging penalties for late payments, suppliers grew wary, and her once-dependable cash flow was suddenly a minefield.
Sitting in her office late one evening, Aisha thought back to her father’s words: “Growth is good, but only if your foundation is strong.” She realised that while SCF had unlocked opportunities, she hadn’t accounted for the risks.
A new approach to risk management
Determined to turn things around, Aisha reached out to a consultant specialising in supply chain financing. During their first meeting, the consultant smiled warmly and said, “SCF is like driving on a busy road. You need clear visibility, a solid plan, and the right safeguards in place.”
Together, they mapped out a workable approach to managing risk in her supply chain financing strategy.
- Know your partners
The first step, the consultant explained, was to understand the financial health of everyone in the supply chain.
“You can’t assume all buyers will always pay on time,” he said. “Not all buyers pay on time, so checking repayment history is crucial. Use data—credit scores, payment histories, market trends—to evaluate their reliability.”
Aisha started vetting her buyers more thoroughly. She began offering SCF only to those with proven payment records, while negotiating flexible terms with her more vulnerable partners. She also categorised her suppliers, prioritizing those with strong track records. - Diversify to reduce exposure
Another critical lesson was not putting all her eggs in one basket.
Before, Aisha had relied heavily on one large buyer for nearly 40% of her revenue. When that buyer delayed payments, the impact was catastrophic. The consultant encouraged her to diversify her buyer base, working with smaller retailers and wholesalers to spread risk.
Similarly, she began sourcing raw materials from multiple suppliers. This gave her flexibility in case one supplier faced production issues or increased prices. - Leverage technology for real-time insights
“Supply chains move fast,” the consultant said. “You need tools that keep you ahead of the curve.”
Aisha adopted a digital SCF platform that provided real-time updates on invoices, payments, and potential delays.
Aisha noticed a trend—one of her key buyers had been stretching payments longer than usual. The platform’s data revealed a consistent delay, prompting her to act before it worsened.
One evening, as Aisha reviewed the dashboard, she noticed a pattern: a key buyer had started paying invoices later than usual. Instead of waiting for the situation to escalate, she reached out to renegotiate terms, offering a small discount for earlier payments. - Strengthen contracts and policies
Lastly, Aisha overhauled her contracts. With the help of legal experts, she ensured that all agreements had clear terms on payment schedules, penalties for delays, and dispute resolution mechanisms.
This new clarity not only protected her business but also reassured her suppliers and buyers.
A new chapter
Months later, Bello Textiles was thriving. Aisha had expanded her product line, onboarded new buyers, and secured partnerships with reliable suppliers. Her SCF strategy, once a source of stress, had become a competitive advantage.
One afternoon, over a bowl of wura with her younger brother, Aisha reflected on her journey.
“Supply chain financing isn’t just about funding,” she said. “It’s about trust, foresight, and balance. Risks are always there, but with the right approach, they don’t have to hold you back.”
Her brother smiled. “Sounds like you’ve cracked the code.”
“Not quite,” Aisha laughed. “But I’m getting there.”
Onboarding onto the SCF platform also opened doors to new buyers. The network of pre-approved businesses expanded her opportunities, reducing reliance on a few large customers.
The bigger picture – with Fiducia in it
Aisha’s story is a reminder that supply chain financing, when paired with effective risk management, can transform businesses. Do your homework and you can build a foundation that supports not just growth, but sustainable success.
Fiducia addresses these critical challenges in supply chain financing by creating a digital marketplace that connects corporate buyers, suppliers, and financiers.
The company leverages buyers’ credit profiles, and enables suppliers access to low-cost financing without straining buyers’ cash flow. This approach ensures smoother transactions, enhances liquidity for suppliers, and reduces the financial burden on buyers, helping businesses maintain stable operations even during cash flow crunches.
One last thing. Fiducia brings previously underserved SMEs into the financing ecosystem, promotes financial inclusion and unlocks new economic value for Nigeria’s supply chains, potentially growing the sector from ₦3 trillion to ₦12 trillion.
