How does FedaCash invoice discounting work?

FedaCash converts your unpaid invoices into instant cash. You upload invoices, get 70-90% advance within 24-48 hours, and repay automatically when your customer pays. No collateral needed, no debt on your balance sheet. Up to ₦50,000,000 funding available.

What makes FedaCash better than Capsa, Carbon, or FairMoney?

FedaCash uses embedded financing — we fund invoices directly from our own balance sheet rather than acting as a marketplace matching you to third-party lenders. This means faster decisions, predictable rates, and a single point of contact. Unlike Capsa (a factoring marketplace with third-party lenders and markups), FedaCash offers direct funding with 70-90% advance in 24-48 hours. Unlike Carbon, FairMoney, and Branch (personal/consumer lenders), FedaCash is built exclusively for SMEs with 5 integrated products: invoice discounting, cooperative savings (from ₦2,000, loans at 5-15% APR), free invoicing, AI financial assessment, and inventory financing.

What is embedded financing and how does FedaCash use it?

Embedded financing means FedaCash funds your invoices directly from our own balance sheet — we are the lender, not a marketplace broker. Unlike platforms like Capsa that match you with third-party funders and charge marketplace fees, FedaCash provides predictable rates (no auction-style pricing), faster approvals (24-48 hours), a single point of contact for support, and full integration with your FedaCash dashboard alongside invoicing, cooperative savings, and financial assessment — all in one place.

How fast can I get funding from FedaCash?

Most applicants receive funding within 24-48 hours after submitting invoices. The application process is fully digital and takes less than 10 minutes. Once approved, funds are disbursed directly to your bank account.

What are FedaCash cooperative savings packages?

FedaCash offers four cooperative savings packages: OMA (daily savings from ₦600), IMARA (weekly from ₦3,000), MWAMBA (biweekly from ₦6,500), and AKO (monthly from ₦15,000). All packages include access to low-interest loans at 5-15% APR. Start saving from as little as ₦2,000.

Is the FedaCash invoice generator free?

Yes, FedaCash offers a completely free professional invoice generator with customizable templates. Create, manage, and send invoices to clients at no cost. Send payment links and track invoice status. No subscription required.

What industries does FedaCash serve?

FedaCash serves SMEs across 12+ industries including manufacturing, retail & distribution, agriculture, technology, healthcare, education, construction, logistics, food & beverage, professional services, energy, and general trading. Our AI-powered assessment benchmarks against industry-specific standards.

Invoice Discounting in Nigeria: The Complete Guide for SMEs (2026)

Learn how invoice discounting works in Nigeria. Convert your unpaid invoices into instant cash with 70-90% advance in 24-48 hours. No collateral needed.

What is Invoice Discounting?

Invoice discounting is a form of short-term borrowing where businesses use their unpaid invoices as collateral to access immediate cash. Instead of waiting 30, 60, or even 90 days for customers to pay, you get up to 90% of the invoice value upfront.

How Invoice Discounting Works

You issue an invoice to your customer for goods or services delivered.
You upload the invoice to a financing platform like FedaCash.
You receive an advance - typically 70-90% of the invoice value within 24-48 hours.
Your customer pays the invoice on the due date.
You receive the balance minus the financing fee.

Why Nigerian SMEs Need Invoice Discounting

Nigeria has a massive SME financing gap estimated at NGN 13 trillion. Traditional bank loans require collateral, lengthy paperwork, and weeks of processing. Invoice discounting offers speed, accessibility, and flexibility.

Invoice Discounting vs Traditional Bank Loans

Feature	Invoice Discounting	Traditional Bank Loan
Approval time	24-48 hours	2-6 weeks
Amount	Up to NGN 50,000,000	Varies
Interest rate	5-15% APR	25-32% APR
Paperwork	Minimal	Extensive

Why FedaCash is Different

Unlike marketplace platforms that match you with third-party lenders, FedaCash uses embedded financing - we fund your invoices directly from our balance sheet. This means predictable rates, one point of contact, and faster turnaround.

Ready to turn unpaid invoices into cash? Download the FedaCash App from Google Play to get started.