Paycient Finance is transforming healthcare with credit

Health is undoubtedly one of the most critical pillars of society. Without access to quality healthcare, communities would struggle and economies would collapse, and Paycient Finance knows that.

Healthcare providers are the backbone of this essential sector, playing a vital role in protecting lives and improving public health.

From combating pandemics like COVID-19 to addressing endemic diseases (malaria and Ebola), healthcare workers have consistently stood on the frontlines. They’ve been risking their lives to save others.

They have a global impact, yet healthcare SMEs in developing nations like Nigeria face numerous challenges that hinder their ability to provide top-notch services.

One of the major hurdles for healthcare providers in Nigeria is access to financing. Traditional lenders are reluctant to extend credit to SMEs in this sector due to perceived risks and insufficient collateral.

A 2020 study revealed that less than 5% of small businesses in Nigeria can access credit from formal financial institutions, and healthcare SMEs are no exception.

This directly affects how they expand services, invest in modern equipment, and retain skilled staff which are critical for providing high-quality care.

The government’s lack of support and the public’s dependence on out-of-pocket payments contribute to the worsening problem, which account for over 70% of healthcare expenditure in Nigeria, according to the World Health Organization. 

So, we have a vicious cycle where providers cannot maintain operations. It’s all leading to breakdown in services, compromised quality of care, and staff leaving their jobs.

With Nigeria’s healthcare spending being just 3.89% of its GDP—one of the lowest in the world—healthcare SMEs find it hard to withstand these shocks without enough support.

Paycient Finance emerged as a beacon of hope

Founded by Yomi Sule, a seasoned healthcare professional with deep industry experience, Paycient Finance is a digital lending platform with a clear mission: to bridge the significant funding gap in Nigeria’s healthcare sector.

Yomi Sule, having witnessed firsthand the financial struggles of healthcare SMEs, recognized the critical need for a solution that would empower these providers to continue delivering high-quality care.

Paycient Finance helps healthcare SMEs prioritize delivering critical care to their communities by providing flexible and easily accessible loans.

Each product targets a specific financial need, so that healthcare providers have the resources they need to operate well and for long, even in the face of financial challenges.

1. Order boost

Healthcare SMEs can use the Order Boost Loan to purchase supplies in bulk. Suppliers get the loan directly to their accounts, providing longer credit periods.

For example: For a loan amount of ₦1,000,000 borrowed for three months:

• Upfront fee: 2% (₦20,000), charged upfront and deducted from disbursement.
• Monthly interest rate: 3% flat (₦30,000 monthly).
• Total repayable: ₦1,110,000 (₦20,000 upfront + ₦363,333 monthly X 3).
• Fees vary depending on customer risk profiles, and late repayment fees apply.

2. Cash boost

Cash boost is designed to provide healthcare SMEs with the working capital they need for everyday expenses like paying rent, staff salaries, utilities, or investing in marketing, training, or equipment. The loan is directly disbursed to the borrower, giving them immediate access to funds.

For example: For a loan amount of ₦1,000,000 borrowed for three months:

• Upfront fee: 2% (₦20,000), charged upfront and deducted from disbursement.
• Monthly interest rate: 3.5% flat (₦35,000 monthly).
• Total repayable: ₦1,125,000 (₦20,000 upfront + ₦368,333 monthly X 3).
• The borrower’s risk profile influences the fees, and late repayment fees apply.

3. Asset boost

Asset boost provides money for healthcare SMEs looking to upgrade their facilities or get new medical equipment.

This product also extends to turnkey public-private partnership healthcare projects, making it a flexible option for both small-scale providers and large healthcare initiatives.

The loan is disbursed directly to the supplier, so that healthcare facilities receive the equipment or assets they need without delay.

For example: For a loan amount of ₦1,000,000 borrowed for six months:

• Upfront fee: 2% (₦20,000), charged upfront and deducted from disbursement.
• Monthly interest rate: 3.5% flat (₦35,000 monthly).
• Total repayable: ₦1,230,000 (₦20,000 upfront + ₦201,667 monthly X 6).
• Fees vary based on customer risk assessment, and late repayment fees apply.

Despite Paycient Finance’s strong vision, they faced roadblocks

The delicate nature of the healthcare industry requires robust support systems and advanced technology.

One of the primary challenges Paycient faced was getting healthcare providers to access their credit facilities digitally. Many healthcare SMEs are not fully digitized and may struggle with online processes.

They also wondered how they could ensure the highest form of KYC to ensure that the loans are given to properly licensed healthcare facilities.

Paycient needed a fully automated system that could handle everything from application to collections easily.

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That’s when they reached out to us at Lendsqr

Recognizing the scale of these challenges, Paycient Finance partnered with us at Lendsqr to get these solutions especially:

Customized digital lending platform: Lendsqr provided a powerful loan management software that helped Paycient eliminate the barriers associated with manual processes, allowing more healthcare SMEs to access their credit offers.

Customized loan forms for KYC: Lendsqr loan management software allowed Paycient to customize loan application forms to capture the necessary data and documents needed for rigorous KYC checks reducing the risk of non-compliance and bad debt.

Automated lending process: From loan origination to tracking repayment, Lendsqr automated the entire lending process. So, Paycient was able to focus on their core mission of supporting healthcare SMEs while relying on Lendsqr loan management software to manage complex operations.

Featured read: What problem is Lendsqr solving for lenders?

The results speak for themselves

Thanks to Lendsqr, Paycient Finance was able to overcome the significant challenges that come with healthcare financing and reach more healthcare providers and fulfill its mission of closing the funding gap in Nigeria’s healthcare sector.

So far, Paycient has disbursed over 7 million naira to healthcare SMEs.

In Yomi Sule’s words, “with Lendsqr we were able to launch in 20% of the time and at 1% of the cost it would have taken us to build our stack from scratch. We only needed to build a wraparound interface around the Lendsqr loan management system and integrate our proprietary healthcare SME credit assessment algorithm to launch. Lendsqr continues to provide us with ongoing tech support while we focus on our core responsibilities of product development inclusive of risk management and compliance; distribution, customer acquisition and customer service; and capital raising and allocation.”

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