An SME Cash Flow Survival Guide for Nigerian Businesses
Profit is opinion; cash is fact. Here's how Nigerian SMEs can stay alive through slow months — using tools Bompai builds into our business accounts.
Most Nigerian SMEs that close don't close because they were unprofitable. They close because they ran out of cash. Profit is what you earn on paper; cash is what is actually in your account when the landlord, the supplier or NEPA comes knocking.
The 13-week cash flow rule
Every business — from a one-person tailoring shop to a 50-staff distribution company — should run a 13-week rolling cash flow forecast. Write down expected cash in (sales, receivables, loan disbursements) and expected cash out (rent, salaries, suppliers, loan repayments, taxes) for the next thirteen weeks. Update it every Monday morning.
Separate the business account from the personal account
If you are using one account for your business and your personal life, you have no idea how the business is really performing. Open a Bompai SME Current Account, route every business transaction through it, and pay yourself a defined 'salary' to your personal account each month. Suddenly your books make sense and so do your loan applications.
Build a one-month cash buffer
Before you reinvest profits into expansion, build a buffer equal to at least one month of fixed costs in a Bompai savings or fixed deposit account. This is the difference between a slow month being a nuisance and a slow month being a disaster.
Collect faster, pay slower
- Offer customers a small discount for paying within seven days.
- Accept transfers via your Bompai SME Current Account so payment is instant and confirmed.
- Use a Bompai POS at your counter so you don't lose customers who only have card.
- Negotiate 14-day or 30-day terms with suppliers where you can.
Use credit deliberately, not desperately
The best time to apply for an SME loan is when you don't need it. Apply when your books are clean, you have history with the bank, and you have a specific use for the funds — not when you are already three weeks behind on rent. A Bompai Business Loan paired with a Bompai SME Current Account becomes a tool, not a lifeline.
Know your numbers
Three numbers every Nigerian SME owner should know off the top of their head: this month's revenue, this month's fixed costs, and current cash on hand. If you don't know all three, your priority this week is to find out.
