Lendsqr, a startup that provides all the software needed to launch lending businesses, has introduced a line of credit for its clients. This new offering will help digital lenders grow by providing access to more capital. Founded in 2018, Lendsqr’s clients include Kredi, Snapcash, and Blockacash. These businesses can now receive overdrafts from a ₦1 billion fund to scale their operations.
Line of Credit to Boost Lending
Lendsqr, known for serving “thousands of lenders with millions of clients,” will charge a 4% interest rate per month to qualified lenders. The interest will apply only to the amount that has been loaned out to end users. This means retail lenders won’t incur charges if they receive repayments and their accounts stay positive. CEO Adedeji Olowe emphasized that Lendsqr will also monitor loan usage to mitigate risks.
Supporting Digital Lenders with Capital
For digital lenders offering collateral-free loans, access to affordable funds is crucial. The cost of funds significantly impacts loan pricing, and higher risk often leads to high interest rates for customers. While technology plays a key role, affordable capital is the real game-changer. As Olowe explains, “Technology alone cannot scale a loan business without enough capital. That’s why we’ve taken this step to meet that need.”
Lendsqr Joins the On-Lending Market
With this new line of credit, Lendsqr is entering the on-lending space. It joins other institutions like Lendable, the Nigerian Bank of Industry, and the African Finance Corporation. Joy Bello, Head of Sales at Lendsqr, stated, “We’re thrilled to be a catalyst for growth in Nigeria’s lending industry. This initiative is about more than capital. It’s about building a stronger financial ecosystem where every licensed lender can succeed.”
Subscription Pricing and Future Plans For The Line of Credit
Lendsqr operates on a subscription model, offering packages from ₦20,000 to ₦1 million per month. For international clients, the service costs $1,000 per month. Looking ahead, Olowe shared, “By next year, we plan to finalize ongoing capital conversations, which will help lenders access 20 times more capital. We’re also expanding this offering to other countries where we operate.”
