Open banking could turn your business cash flow into collateral

Open banking could allow Nigerian businesses to use their cash flow as collateral for loans, according to a report. The approach addresses a long-standing challenge in small-business lending in Nigeria, where lenders have historically sought different forms of proof of creditworthiness. The report notes that the traditional discussion around small-business loans in the country often begins with questions about physical assets owned. It suggests that cash flow data could serve as an alternative basis for assessing creditworthiness.

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