Contract Financing Term Sheet For Nigerian Companies With Large Signed Contracts
Financely structures contract financing and contract monetization mandates for Nigerian companies with USD 10,000,000+ in annual contract value. We package Nigerian contracts for lender review, test market appetite, underwrite the repayment route and distribute eligible mandates to banks, private credit funds, ABL lenders, receivables investors and structured credit buyers.
Nigeria mandate fit: best suited for Nigerian companies with signed contracts, credible buyers or offtakers, bankable payment routes, clear delivery capacity, assignable receivables and at least USD 10,000,000 in annual contract value.
Standard Operating Procedure
Request A Proposal
Submit the Nigerian contract, buyer details, annual contract value, funding need and repayment route. The USD 500 RFQ fee covers in-depth file review and external market consultation. Start here to request a contract financing proposal.
Market Sounding
Financely checks whether lenders are likely to underwrite the Nigerian contract, buyer, receivables profile, jurisdiction, currency, collateral package and payment control.
ABL Engagement
If viable, Financely issues an asset based lending engagement letter. After retainer payment, KYT, KYC, underwriting and lender distribution begin.
Lender Distribution
The mandate is distributed to lenders seeking exposure to Nigeria-linked contracts, receivables, supply chains, government buyers, corporate buyers or export-linked cash flows.
Term Sheet Auction
Lenders submit indicative or formal terms. Financely compares pricing, advance rate, tenor, collateral, covenant package, profit-share terms and closing conditions.
Closing And Funding
The borrower accepts the most favourable executable offer, completes documentation, satisfies conditions precedent and receives funding from the selected lender or investor.
Eligible Financing Structures
Senior Contract Facility
Funding against eligible receivables, assigned proceeds, buyer payments and controlled collection accounts.
Purchase Order Finance
Supplier, inventory, logistics or production finance against signed purchase orders and verified delivery budgets.
Milestone Advance
Funding against accepted milestones, service delivery claims, EPC progress payments or approved work certificates.
Warehouse Line
Revolving availability against diversified invoices, recurring contracts, obligor pools or repeat corporate buyers.
Receivables Securitization
SPV-based financing for larger Nigerian receivables pools with measurable cash flows, servicing data and investor reporting.
Profit Share Or Equity-Linked Funding
Capital with interest plus profit share, preferred return, warrants, conversion rights or minority equity participation.
Indicative Pricing
| Structure | Indicative Economics | Nigeria Use Case |
|---|---|---|
| Senior Receivables ABL | SOFR / EURIBOR / SONIA + 3.50% to 8.00% p.a., or equivalent all-in floating-rate pricing. | Stronger Nigerian borrowers with corporate buyers, assigned receivables and controlled collections. |
| Private Credit Contract Loan | 10.00% to 18.00% p.a. all-in, depending on buyer quality, collateral, currency and repayment control. | Contract-backed term loans, working capital bridges and project delivery finance. |
| Purchase Order Finance | 1.25% to 3.50% per 30 days, often priced as transaction finance. | Supplier payments, inventory procurement, manufacturing, imports and logistics execution. |
| Milestone Advance | 12.00% to 22.00% p.a. all-in, or milestone discount pricing. | Government supply, EPC, maintenance, energy services, infrastructure and approved project work. |
| Warehouse Line | Base rate + 4.00% to 10.00% p.a., plus monitoring, reporting or unused line fees where applicable. | Recurring contracts, diversified invoices, multi-buyer receivables and contract pools. |
| Receivables Securitization | Senior tranche pricing may be lower than whole-loan private credit where the pool is diversified and reportable. Structuring starts at USD 100,000. | Large receivables pools, repeat obligors, contract-backed cash flows and scalable investor reporting. |
| Profit-Share Finance | Base coupon plus 5.00% to 25.00% share of defined gross or project profit, subject to negotiation. | Higher-margin contracts where lenders need upside participation to underwrite risk. |
| Equity-Linked Capital | Preferred return, warrants, conversion rights or minority equity participation. Quoted case by case. | Strategic contract pools, growth platforms, complex mandates and capital stacks with thin collateral. |
Pricing notice: all pricing is indicative and non-binding. Nigeria-linked mandates are priced by lenders based on buyer credit, borrower financials, payment route, currency, collateral, contract enforceability, FX exposure, tenor and closing risk.
Condensed Nigeria Contract Financing Term Sheet
| Term | Indicative Position |
|---|---|
| Minimum Size | USD 10,000,000 minimum annual contract value, recurring or non-recurring. |
| Eligible Nigerian Borrowers | Operating companies, suppliers, contractors, commodity traders, oil and gas service providers, logistics groups, distributors, EPC contractors, healthcare suppliers, power-sector service providers and infrastructure contractors. |
| Eligible Contracts | Corporate contracts, government contracts, purchase orders, offtake agreements, supply contracts, EPC contracts, service agreements, milestone claims, invoices and receivables pools. |
| Use Of Proceeds | Supplier payments, inventory, import execution, mobilization, payroll, logistics, equipment, project delivery, receivables bridge and contract-linked working capital. |
| Repayment Source | Buyer payments, assigned receivables, contract proceeds, milestone receipts, invoice collections, offtake payments or diversified contract pool cash flows. |
| Security Package | Receivables pledge, assignment of proceeds, controlled accounts, escrow, inventory security, contract rights, equipment liens, insurance assignment, sponsor support or guarantees where available. |
| Currencies | USD primary. EUR, GBP, AED and other major currencies may be reviewed. NGN structures are case by case and depend on lender appetite, FX risk, convertibility, collections and repayment control. |
| Distribution Targets | Banks, private credit funds, ABL lenders, trade finance lenders, receivables investors, family offices, specialty finance firms and structured credit investors. |
Financely Fees
| Mandate Type | Fee Position |
|---|---|
| RFQ Review | USD 500. Covers in-depth file review and external consultation to assess lender market interest before a full ABL engagement is issued. |
| Routine Contract Financing | Starting at USD 25,000 for straightforward contract-backed working capital files with signed contracts, clear buyer profile and defined repayment route. |
| Complex Nigeria Mandates | Quoted case by case for government contracts, cross-border contracts, commodity-linked contracts, offshore payment routes, multi-buyer pools, profit-share or equity-linked structures. |
| Receivables Securitization | Starting at USD 100,000 for asset pool review, investor package preparation, waterfall design, servicer reporting logic and structured credit distribution. |
| Third-Party Costs | Legal counsel, tax advice, collateral review, escrow, trustee, servicer, SPV, bank fees, due diligence and verification costs are billed separately where required. |
Nigeria Contract Financing FAQ
Can Nigerian companies apply?
Yes. Financely reviews Nigerian contract financing mandates where the company has signed contracts, credible buyers, sufficient annual contract value, a clear repayment route and documents that can support lender underwriting.
Can government contracts be financed?
Yes, subject to documentation, payment history, procurement evidence, assignment rules, contract enforceability and lender appetite. Government contract files usually need deeper legal and payment-route review.
Can financing be in naira?
NGN financing is reviewed case by case. USD is the primary currency for most cross-border mandates. Local-currency structures depend on lender appetite, FX risk, convertibility, repayment control and collections.
What does Financely guarantee?
Financely guarantees the advisory process within the signed mandate scope, including RFQ review, market sounding, KYT, KYC coordination, underwriting, lender packaging, distribution, term sheet comparison support and closing coordination.
What is outside Financely’s guarantee?
Funding approval, pricing, advance rate, collateral requirements, legal documentation, closing timeline and disbursement remain subject to lender underwriting, credit approval, sanctions checks, documentation and borrower performance.
How do we start?
Start with the RFQ. Submit the signed contract or contract pool summary, annual contract value, buyer details, jurisdiction, funding requirement, use of proceeds, receivables profile and repayment route. You can request a contract financing proposal for the initial review.
Request A Nigeria Contract Financing Proposal
Submit the signed contract or contract pool summary, annual contract value, buyer details, funding need, use of proceeds, receivables profile, currency and repayment route.
Request A Contract Financing ProposalIndicative term sheet notice: The terms shown on this page are indicative, non-binding and subject to transaction review, lender appetite, underwriting, KYC, KYT, AML, sanctions checks, collateral review, legal documentation and final credit approval. Financely provides commercial finance advisory, underwriting support, structuring support and capital placement coordination. All funding decisions, lender terms, approval timelines and disbursements remain under the control of the relevant lender, investor or financing counterparty.