Lendsqr Expands Offerings with New On-Lending Initiative

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MosopefoluwaOctober 14, 20241 Mins read1.2k

Lendsqr, a fintech startup that provides software solutions for lending businesses, has announced a new initiative to offer its clients lines of credit. This move aims to help these businesses increase their lending capacity and expand their operations.

Founded in 2018, Lendsqr has a growing client base including Kredi, Snapcash, and Blockacash. The company will now offer these businesses overdrafts from a ₦1 billion purse.

Lendsqr claims to have “thousands of lenders servicing millions of clients.” Qualified lenders will be charged 4% per month, and interest will be collected only on the portion of the facility that is disbursed to end users.

Adedeji Olowe, CEO of Lendsqr, explained that the company will track how the loans are used to identify and address potential risks. He emphasized that if lenders receive repayments from their borrowers and their accounts swing into positive, they won’t pay any interest at all.

For digital lenders offering collateral-free personal loans, the cost of funds is a significant factor in loan pricing. Lendsqr’s new offering provides a solution to this problem, offering relatively cheap funds to these businesses.

With this initiative, Lendsqr joins other on-lending institutions in Nigeria, such as Lendable, the Nigerian Bank of Industry, and the African Finance Corporation.

Joy Bello, Head of Sales at Lendsqr, expressed excitement about the company’s role in fostering growth in Nigeria’s lending sector. She emphasized that Lendsqr’s on-lending initiative is not just about providing capital but also about creating a stronger and more inclusive financial ecosystem.

Lendsqr offers subscription plans ranging from ₦20,000 to ₦1 million monthly for Nigerian businesses, while international clients can access the service for $1,000 per month.

Olowe added that Lendsqr is actively pursuing additional capital partnerships and aims to extend its on-lending services to other countries where it operates or is available.

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