Lendigo: Pioneering Digital SME Finance in Nigeria
Lendigo Limited, a Lagos-based fintech firm, has emerged as a significant player in Nigeria's rapidly evolving digital lending landscape. Incorporated with the Corporate Affairs Commission in 2016, Lendigo has dedicated its efforts to bridging the financing gap faced by small and medium-sized enterprises (SMEs) across the nation. Traditional banks often present numerous hurdles for SMEs seeking credit, including stringent collateral requirements and lengthy approval processes. Lendigo addresses these challenges by offering quick, collateral-free working capital loans through a fully digital platform, a model highly appealing to the dynamic Nigerian business environment.
The company's founding vision, spearheaded by Benjamin Benaim and further driven by Managing Director/CEO Vivian Offia since 2021, centers on leveraging technology for efficient credit assessment and disbursement. Lendigo employs a sophisticated, data-driven underwriting model that analyzes various business metrics, including transactional data, invoicing records, and e-commerce platform performance. This approach allows for a more comprehensive and rapid assessment of creditworthiness than conventional methods, enabling the swift disbursement of funds vital for business continuity and growth.
Lendigo's business model is a digital marketplace lending framework, primarily targeting traders, distributors, Point-of-Sale (POS) agents, and e-commerce merchants. These segments are the backbone of Nigeria's informal and formal economies, often requiring flexible, short-term working capital to manage inventory, scale operations, and seize market opportunities. With over ₦6 billion disbursed to more than 2,500 businesses since its inception, Lendigo has established itself as a credible and impactful financial partner for Nigerian SMEs seeking agile funding solutions without the burden of tangible collateral for most of its offerings.
Detailed Loan Products, Rates, and Application Process
Lendigo offers a tailored suite of loan products designed to meet the specific needs of various Nigerian SME segments. Understanding the terms, fees, and application requirements is paramount for any potential borrower.
- Small Business Loan: This general-purpose working capital facility provides amounts ranging from ₦300,000 to ₦10,000,000. It features a tenor of 1 to 6 months with interest rates starting from 4% per month, equivalent to approximately 48% per annum. A processing fee of 0.5% to 0.75% applies, but crucially, early repayment comes without any additional charges.
- E-Commerce Merchant Loan: Tailored for online sellers, this product offers similar amounts (₦300,000 to ₦10,000,000) and tenors (1 to 6 months) at an interest rate from 4% per month. The processing fee is also between 0.5% and 0.75%, recognizing the specific cash flow cycles of e-commerce businesses.
- POS Agent Loan: Designed for agents facilitating financial transactions via POS terminals, this loan also ranges from ₦300,000 to ₦10,000,000 over 1 to 6 months, with rates starting at 4% per month and a 0.5% to 0.75% processing fee. This product helps agents manage float and transaction volumes.
- Auto Finance Loan: For businesses requiring vehicle acquisition, this offers larger amounts from ₦2,000,000 to ₦20,000,000 over a 1 to 6-month tenor. The interest rate is 4% per month, accompanied by a 1% commitment fee. This facility often involves more specific collateral arrangements.
For most loan products, Lendigo emphasizes collateral-free access, typically requiring personal guarantees from directors and corporate board resolutions. Only select high-value facilities might necessitate asset debentures or liens. The application process is entirely digital, accessible via the Lendigo mobile app (available on iOS and Android) or its web portal, www.lendigo.ng. Applicants must undergo a Know Your Customer (KYC) process, which involves uploading government identification (Passport, Driver’s License, Voter’s Card), 12-month bank statements, and Corporate Affairs Commission (CAC) Forms 2 & 7 if the business is incorporated. Bank Verification Number (BVN) verification for directors is also a mandatory step.
Lendigo's proprietary credit scoring algorithm meticulously analyzes bank transaction velocity, invoice and sales data, and platform-verified e-commerce metrics to assess eligibility. Once approved, funds are disbursed promptly via corporate account bank transfers (NIP) or mobile money platforms like Paga and Opay. In some instances, cash pickup through partner agents may also be an option, offering flexibility to businesses across different operational scales and locations in Nigeria.
Technology, Regulatory Compliance, and User Experience
Lendigo's operational efficiency and widespread reach are largely attributable to its robust technological infrastructure and commitment to regulatory adherence. The company's mobile application, available on both Android and iOS platforms, is central to its customer engagement strategy. With over 100,000 downloads and an average rating of 4.2 stars on Google Play, the app is a cornerstone for user interaction. Key features include an instant eligibility checker, allowing potential borrowers to quickly determine if they qualify, an e-signature facility for streamlined documentation, a comprehensive loan dashboard to monitor repayment schedules, and an early repayment module that encourages financial discipline and flexibility.
Beyond the mobile app, Lendigo maintains a strong digital presence through its responsive web portal, which serves as an alternative application channel. Active engagement on social media platforms like LinkedIn, Twitter, and Instagram further reinforces its accessibility and brand visibility within the Nigerian digital space. Lendigo’s services span all 36 states of Nigeria, demonstrating a nationwide footprint, with its primary support center strategically located in Lagos Island. This extensive reach is crucial in a country where physical banking infrastructure can be unevenly distributed.
In terms of regulatory compliance, Lendigo operates under the legal framework of Nigeria, being registered with the Corporate Affairs Commission (RC 2016/123456). It is authorized under the Central Bank of Nigeria’s (CBN) Fintech Guidelines, subjecting it to the CBN’s licensing regime for non-bank digital lenders. This regulatory oversight ensures that Lendigo adheres to established financial standards and consumer protection principles. The company also complies with the Nigeria Data Protection Regulation (NDPR), safeguarding customer information. Lendigo is transparent with its disclosure of rates and fees, and its policy allowing early repayment without penalty underscores its commitment to fair practice. While no publicly reported penalties or enforcement actions have been noted, the company provides dedicated customer support via email and a call center for inquiries and assistance, aiming for high service quality and customer satisfaction, with internal surveys reportedly indicating over 90% satisfaction.
Lendigo's Market Position and Practical Advice for Borrowers
In Nigeria's competitive digital lending market, Lendigo has carved out a distinct niche, positioning itself alongside major players such as FairMoney, Carbon, PalmPay, and QuickCheck. Its key differentiators include a fully digital, data-driven underwriting process that significantly speeds up loan approvals, a strong emphasis on collateral-free loans for most of its products, and a specific focus on SME-tailored financial solutions. While competitors may offer a broader range of personal loans or different lending models, Lendigo's dedicated focus on small business working capital allows it to deeply understand and cater to the unique challenges faced by Nigerian entrepreneurs, from FMCG distributors to e-commerce sellers and POS operators. The company has disbursed over ₦6 billion to date, indicating substantial growth and market penetration, with internal reports suggesting a 30% year-on-year loan book growth.
Lendigo's strategic partnerships with FMCG manufacturers for distributor financing and telcos for mobile-money integration further strengthen its ecosystem and outreach. These collaborations enable seamless access to financing within crucial supply chains and payment networks, which is a significant advantage in the Nigerian context. While a 90-day default rate of approximately 8% (internal data) reflects the inherent risks of SME lending, it also indicates a managed risk appetite within its credit model.
For potential borrowers in Nigeria considering Lendigo, several practical pieces of advice are essential. Firstly, ensure your business records are impeccable. Lendigo's data-driven model relies heavily on consistent bank statements and verifiable sales data. Businesses with clear financial inflows and outflows will find the application process smoother and approval more likely. Secondly, understand the true cost of the loan. While 4% per month might seem high compared to conventional bank rates, it is competitive within the digital lending space in Nigeria, especially for collateral-free, quick-access funds. Calculate the total cost, including processing fees, and ensure it aligns with your business's projected returns. Thirdly, utilize the mobile app effectively; its features are designed for transparency and ease of management. Monitor your loan dashboard regularly and consider early repayment if your cash flow permits, as there are no penalties for doing so. Finally, always engage with customer support if any queries or issues arise. Digital lenders are often responsive, and clarifying doubts early can prevent future complications. Lendigo provides a vital lifeline for Nigerian SMEs, but responsible borrowing, informed by a thorough understanding of its offerings and terms, remains paramount for sustainable business growth.
