Working Capital Advisory Service
Release Cash. Optimise Liquidity. Fund Growth.
Working capital is the lifeblood of every business. When it is managed well, businesses have the cash they need to operate, invest, and grow. When it is managed poorly, even profitable businesses run out of cash and fail. In Nigeria’s challenging economic environment—characterised by inflation, currency volatility, high interest rates, and supply chain disruptions—working capital management has become more critical than ever. Research shows that Nigerian businesses often carry higher inventory levels than global peers due to import delays and currency volatility, tying up capital that could be deployed elsewhere. At Qeeva Advisory, we provide working capital advisory services that help you release cash, optimise liquidity, and fund growth.
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Why Nigerian Businesses Need Working Capital Advisory
Working capital challenges are among the most common causes of business failure in Nigeria. Here are the most critical gaps we help you address.
Cash Trapped in Working Capital – Many Nigerian businesses have significant cash trapped in receivables, inventory, and inefficient payables processes. Releasing this cash can fund growth without additional borrowing.
Rising Interest Rates – With lending rates hovering around 25-36%, borrowing to fund working capital is expensive. Optimising working capital reduces the need for expensive debt.
Restricted Access to Credit – The CBN’s 45% Cash Reserve Ratio for commercial banks and 75% on non-Treasury Single Account deposits has restricted credit availability, making efficient working capital management essential.
Supply Chain Disruptions – Nigerian supply chains are complex and vulnerable to disruption. Businesses often hold higher inventory levels than necessary as a buffer, tying up capital.
Currency Volatility – Naira volatility affects import costs and supplier payments. Managing currency exposure within working capital is essential.
Long Cash Conversion Cycles – Many Nigerian businesses have long cash conversion cycles—the time from paying suppliers to collecting from customers. Reducing this cycle releases cash.
Weak Receivables Management – Poor credit assessment, slow invoicing, and ineffective collections result in high days sales outstanding (DSO) and bad debts.
Inefficient Payables Management – Either paying suppliers too early (tying up cash) or too late (damaging relationships and incurring penalties).
Inventory Inefficiencies – Overstocking ties up capital; understocking leads to lost sales. Balancing inventory levels is critical.
Lack of Working Capital Visibility – Many businesses lack real-time visibility into working capital components, making it difficult to manage.
Seasonal and Cyclical Pressures – Many Nigerian businesses face seasonal demand patterns that create working capital strain.
Growth Straining Working Capital – Paradoxically, growth often strains working capital. As sales grow, receivables and inventory grow faster than payables, consuming cash.
The Solution: Strategic Working Capital Advisory
We provide working capital advisory services that help you release cash, optimise liquidity, and fund growth. Our approach combines working capital diagnostics, process improvement, financing optimisation, and ongoing monitoring.
At Qeeva Advisory, we understand that working capital is not just about collecting faster and paying slower—it is about optimising the entire cash conversion cycle while maintaining supplier relationships, customer satisfaction, and operational efficiency. Our team brings deep expertise in working capital management, treasury, and process improvement.
We help you identify cash trapped in working capital, release it, and redeploy it to fund growth. We help you optimise receivables, payables, and inventory. We help you access working capital financing on the best terms.
Whether you need a working capital diagnostic, cash conversion cycle optimisation, receivables management, or complete working capital transformation, we provide the expertise and commitment to help you succeed.
Our Comprehensive Working Capital Advisory Services
We offer end-to-end working capital advisory services tailored to the Nigerian business environment.
Working Capital Diagnostics
We help you understand your working capital position.
Working Capital Assessment – We assess your working capital position, including receivables, payables, inventory, and cash.
Cash Conversion Cycle Analysis – We analyse your cash conversion cycle, measuring days sales outstanding (DSO), days inventory outstanding (DIO), and days payables outstanding (DPO).
Working Capital Benchmarking – We benchmark your working capital metrics against industry peers and leading practices.
Cash Trapped Analysis – We quantify cash trapped in working capital and identify release opportunities.
Working Capital Drivers Analysis – We identify the drivers of working capital—payment terms, inventory policies, credit policies—and their impact.
Root Cause Analysis – We analyse the root causes of working capital inefficiencies.
Working Capital Reporting – We establish working capital reporting that provides visibility to management.
Receivables Management
We help you optimise receivables and accelerate collections.
Credit Policy Review – We review and improve credit policies, including credit assessment, credit limits, and payment terms.
Customer Credit Assessment – We help you assess customer creditworthiness, reducing bad debt risk.
Invoicing Process Improvement – We improve invoicing processes, ensuring invoices are accurate, complete, and sent promptly.
Collections Process Improvement – We improve collections processes, including dunning, escalation, and dispute resolution.
Days Sales Outstanding (DSO) Reduction – We help you reduce DSO through process improvement and customer engagement.
Aging Analysis – We analyse receivables aging, identifying overdue accounts and prioritising collections.
Bad Debt Management – We help you manage bad debts, including provisioning, write-offs, and recovery.
Receivables Financing – We advise on receivables financing options, including invoice discounting and factoring.
Customer Payment Behaviour Analysis – We analyse customer payment behaviour, identifying patterns and risks.
Early Payment Discounts – We advise on early payment discount programmes that accelerate collections.
Payables Management
We help you optimise payables and manage supplier relationships.
Payment Terms Review – We review payment terms with suppliers, identifying opportunities to extend terms without damaging relationships.
Payment Terms Negotiation – We support negotiation of improved payment terms with suppliers.
Payables Process Improvement – We improve payables processes, including invoice receipt, verification, approval, and payment.
Days Payables Outstanding (DPO) Optimisation – We help you optimise DPO, balancing cash retention with supplier relationships.
Payment Run Optimisation – We optimise payment runs, ensuring efficient use of cash while meeting obligations.
Supplier Segmentation – We segment suppliers based on criticality, negotiating terms accordingly.
Supply Chain Finance – We advise on supply chain finance options that optimise cash flow across the supply chain.
Early Payment Programmes – We advise on early payment programmes that benefit both buyer and supplier.
Payment Controls – We establish payment controls that prevent fraud and errors.
Inventory Management
We help you optimise inventory and release trapped cash.
Inventory Assessment – We assess inventory levels, including raw materials, work-in-progress, and finished goods.
Inventory Segmentation – We segment inventory using ABC analysis, prioritising management effort.
Safety Stock Optimisation – We optimise safety stock levels, balancing service levels with carrying costs.
Reorder Point Optimisation – We optimise reorder points and order quantities.
Slow-Moving and Obsolete Inventory – We identify slow-moving and obsolete inventory, recommending disposal or write-down.
Inventory Forecasting – We improve inventory forecasting, reducing overstocking and stockouts.
Days Inventory Outstanding (DIO) Reduction – We help you reduce DIO through process improvement and demand planning.
Vendor Managed Inventory (VMI) – We advise on VMI arrangements that reduce inventory carrying costs.
Consignment Stock – We advise on consignment stock arrangements.
Inventory Financing – We advise on inventory financing options.
Cash Conversion Cycle Optimisation
We help you optimise the entire cash conversion cycle.
Cash Conversion Cycle Mapping – We map your cash conversion cycle, identifying each stage from supplier payment to customer collection.
Cycle Time Reduction – We reduce cycle times at each stage, releasing cash.
Process Integration – We integrate receivables, payables, and inventory processes for optimal working capital.
Working Capital Targets – We establish working capital targets and metrics that drive improvement.
Working Capital Governance – We establish governance over working capital, ensuring accountability.
Working Capital Culture – We build a culture where working capital management is everyone’s responsibility.
Working Capital Financing
We help you access working capital financing on the best terms.
Working Capital Financing Assessment – We assess your working capital financing needs and options.
Bank Facility Advisory – We advise on bank facilities, including overdrafts, revolving credit, and term loans.
Receivables Financing – We advise on receivables financing, including invoice discounting and factoring.
Supply Chain Finance – We advise on supply chain finance programmes.
Inventory Financing – We advise on inventory financing options.
Trade Finance – We advise on trade finance instruments, including letters of credit and guarantees.
Factoring – We advise on factoring arrangements.
Purchase Order Finance – We advise on purchase order finance.
Merchant Cash Advance – We advise on merchant cash advance options.
Financing Negotiation – We support negotiation of financing terms with lenders.
Working Capital Policy and Governance
We help you establish working capital policies and governance.
Working Capital Policy Development – We develop working capital policies that define objectives, responsibilities, and processes.
Credit Policy Development – We develop credit policies that balance sales growth with credit risk.
Payment Policy Development – We develop payment policies that optimise cash while maintaining supplier relationships.
Inventory Policy Development – We develop inventory policies that balance service levels with carrying costs.
Working Capital Governance – We establish governance structures that oversee working capital management.
Working Capital Metrics – We establish metrics that track working capital performance.
Working Capital Reporting – We establish reporting that provides visibility to management and the board.
Working Capital Technology and Automation
We help you leverage technology for working capital management.
Working Capital Systems – We help select and implement systems that support working capital management.
Automated Invoicing – We implement automated invoicing that accelerates billing and reduces errors.
Automated Collections – We implement automated collections that improve DSO.
Automated Payables – We implement automated payables that improve efficiency and control.
Inventory Management Systems – We implement inventory management systems that optimise stock levels.
Working Capital Dashboards – We implement dashboards that provide real-time visibility into working capital.
Data Analytics – We use data analytics to identify working capital improvement opportunities.
Working Capital Training and Capability Building
We help you build working capital management capability.
Working Capital Training – We deliver training on working capital management, including receivables, payables, and inventory.
Finance Team Training – We train finance teams on working capital metrics, analysis, and improvement.
Sales Team Training – We train sales teams on credit policies and collections.
Procurement Team Training – We train procurement teams on payment terms and supplier management.
Operations Team Training – We train operations teams on inventory management.
Working Capital Metrics We Track
We help you measure and improve key working capital metrics.
| Metric | Formula | What It Measures |
|---|---|---|
| Days Sales Outstanding (DSO) | (Receivables ÷ Revenue) × Days | Average days to collect from customers |
| Days Inventory Outstanding (DIO) | (Inventory ÷ COGS) × Days | Average days inventory is held |
| Days Payables Outstanding (DPO) | (Payables ÷ COGS) × Days | Average days to pay suppliers |
| Cash Conversion Cycle (CCC) | DSO + DIO – DPO | Days from paying suppliers to collecting from customers |
| Working Capital Turnover | Revenue ÷ Working Capital | Efficiency of working capital use |
| Current Ratio | Current Assets ÷ Current Liabilities | Short-term liquidity |
| Quick Ratio | (Current Assets – Inventory) ÷ Current Liabilities | Liquidity excluding inventory |
Industries We Serve
We provide working capital advisory services across multiple sectors in Nigeria.
Manufacturing – We help manufacturers optimise inventory, manage supplier terms, and accelerate collections.
Retail and Consumer Goods – We help retailers optimise inventory, manage supplier terms, and improve cash flow.
Oil and Gas – We help energy companies manage working capital across complex supply chains and long payment cycles.
Technology and Digital – We help tech companies optimise working capital as they scale.
Healthcare – We help healthcare organisations manage receivables from insurers and patients, and optimise inventory.
Professional Services – We help professional service firms reduce DSO and improve cash flow.
Real Estate and Construction – We help developers and construction companies manage project working capital.
Logistics and Transportation – We help logistics companies manage working capital across operations.
Hospitality – We help hotels and restaurants optimise inventory and manage payables.
E-commerce and Marketplaces – We help e-commerce businesses manage inventory and payment cycles.
Agriculture and Agribusiness – We help agribusinesses manage seasonal working capital requirements.
Non-Profit and NGOs – We help mission-driven organisations manage working capital and cash flow.
SMEs – We provide accessible working capital advisory for SMEs.
Family Businesses – We help family businesses professionalise working capital management.
Our Engagement Process
We follow a structured, collaborative process to deliver high-impact working capital advisory.
Phase 1: Discovery and Diagnostic – We understand your business, working capital position, and challenges. We conduct working capital diagnostics and cash conversion cycle analysis.
Phase 2: Strategy and Planning – We develop working capital improvement strategies, setting targets and identifying initiatives.
Phase 3: Implementation – We implement receivables, payables, and inventory improvements. We support financing arrangements and systems implementation.
Phase 4: Monitoring and Continuous Improvement – We monitor working capital metrics, refine processes, and provide ongoing support.
Why Choose Qeeva Advisory for Working Capital Advisory
Deep Working Capital Expertise – We have deep expertise in working capital management, including receivables, payables, inventory, and cash conversion cycle optimisation.
Nigerian Market Knowledge – We understand the Nigerian working capital environment, including supply chain challenges, currency volatility, and access to credit.
Practical and Actionable – We provide practical solutions tailored to your business size, industry, and specific challenges.
Cash Release Focus – We help you identify and release cash trapped in working capital, funding growth without additional borrowing.
Financing Optimisation – We help you access working capital financing on the best terms.
Technology-Enabled – We leverage systems and analytics to provide visibility and improve working capital management.
Governance Focus – We establish working capital governance that ensures accountability.
End-to-End Support – We provide comprehensive services from diagnostic to implementation to ongoing monitoring.
Training and Capability Building – We train your team and build internal capability, ensuring sustainable working capital management.
Long-Term Partnership – We build lasting relationships, providing ongoing support as your business evolves.
Confidentiality and Integrity – We treat your business and financial information with the highest level of confidentiality.
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Suggested Reading
Cash Reserve Planning During Economic Downturns in Nigeria – In Nigeria’s challenging economic environment, cash reserve planning is no longer optional—it is a survival strategy.
Budgeting Techniques for Sustainable Growth in Nigeria – A well-structured budget is not about restraint. It is about direction, clarity, and control.
Common Accounting Errors That Affect Profitability in Nigeria – Accounting errors quietly drain profits, attract penalties, and limit growth.
Preparing a Business for External Audits in Nigeria – External audits can be daunting, but with the right preparation, they become an opportunity to demonstrate your business’s financial integrity.
Deferred Tax Asset Validation Burndown: Complete Guide for Nigerian Businesses – Deferred tax asset validation is a critical financial reporting discipline.
Supporting Liquidation Planning for a Struggling Enterprise – Practical guidance for businesses facing financial distress.
Frequently Asked Questions (FAQ)
1. What is working capital?
Working capital is the difference between current assets (receivables, inventory, cash) and current liabilities (payables, short-term debt). It measures a business’s short-term financial health and operational efficiency.
2. What is the cash conversion cycle?
The cash conversion cycle (CCC) measures how long it takes from paying suppliers to collecting from customers. It is calculated as DSO + DIO – DPO. A shorter CCC means cash is tied up for less time.
3. Why is working capital management important?
Working capital management is important because cash trapped in working capital cannot be used for growth, investment, or debt reduction. Efficient working capital management releases cash and reduces the need for expensive borrowing.
4. How can I reduce DSO?
You can reduce DSO by improving credit assessment, sending invoices promptly, following up on overdue accounts, offering early payment discounts, and using receivables financing.
5. How can I optimise DPO?
You can optimise DPO by negotiating extended payment terms with suppliers, improving payables processes, and using supply chain finance.
6. How can I reduce inventory?
You can reduce inventory by improving demand forecasting, optimising safety stock, segmenting inventory, disposing of slow-moving stock, and using vendor-managed inventory.
7. What working capital financing options are available?
Options include bank overdrafts, revolving credit, receivables financing (invoice discounting, factoring), supply chain finance, inventory financing, trade finance, and purchase order finance.
8. What is supply chain finance?
Supply chain finance is a set of financing solutions that optimise cash flow across the supply chain. It typically involves a financier paying suppliers early (at a discount) while the buyer pays later.
9. How do you measure working capital performance?
We measure working capital performance using DSO, DIO, DPO, cash conversion cycle, working capital turnover, current ratio, and quick ratio.
10. Do you provide working capital training?
Yes. We deliver working capital training for finance, sales, procurement, and operations teams.
11. Do you serve businesses outside Lagos?
Yes. While our head office is in Ikeja, Lagos, we serve businesses across Nigeria. Our working capital advisory services are available to clients regardless of location.
12. How do I get started?
Contact us to schedule your free consultation. We’ll discuss your working capital advisory needs, assess your situation, and provide recommendations for how we can help.
Contact Us
Release cash, optimise liquidity, and fund growth. Let us build a partnership that strengthens your working capital management.
Schedule Your Free Consultation to discuss your working capital advisory needs and explore how we can help.
Phone: +234 802 320 0801, +234 807 576 5799
Email: info@qeeva.com
Address: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria
Business Hours: Monday to Friday, 8:00 AM – 6:00 PM WAT
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