The working capital gap that quietly caps Nigerian SMEs

Most SME funding problems are timing problems. Stock is bought in month one, sold in month two and paid for in month three, while salaries and rent run every month regardless.

Map the cycle in days: how long stock sits, how long customers take to pay, how long you take to pay suppliers. The gap between them, multiplied by your monthly cost base, is roughly the facility size you need.

Financing that gap with short-tenor working capital is usually cheaper than the alternative — discounting your prices to force early payment.