AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A small importer of Nigerian goods has four main ways to fund stock: credit from the Nigerian supplier, finance against your own customers' invoices, short-term stock or overdraft lending from your bank, and a letter of credit that lets the supplier ship against a bank's promise rather than your cash. Supplier credit is usually the cheapest but the hardest to get. A letter of credit protects both sides but costs fees and needs exact documents.
The problem is the gap. You pay a supplier in Lagos or Onitsha, the goods spend weeks at sea and in customs, and your own customers pay you thirty or sixty days after delivery. For a shop or wholesaler selling Nigerian food, fabric or beauty products abroad, three months of cash can sit in one container. Trade finance is the name for the tools that fund that gap. Here is how each one works from the importer's side.
1. Supplier credit
The supplier ships and lets you pay later, say thirty or sixty days after the bill of lading. It costs nothing in fees, but the supplier carries the risk, so few Nigerian exporters offer it to a new buyer. It also has a regulatory edge: Nigerian exporters must bring export proceeds home under the Form NXP rules (see Form NXP and export proceeds), so a supplier giving long credit is waiting for money it is required to repatriate.
How to earn it: pay early and in full on the first few orders, keep to the agreed Incoterms rule (the ICC Academy explains, for example, that under FOB the risk passes once the goods are loaded on the vessel), and ask for terms once there is a track record. A part-deposit, part-on-arrival split is a common middle step (see advance payment or credit).
2. Invoice finance on your own sales
If you sell to supermarkets, restaurants or other businesses on credit, a lender can advance part of the value of those unpaid invoices and collect, or wait for, payment. The finance is based on your customers' credit, not yours, which suits a young business with good buyers. It does not help with the deposit to the Nigerian supplier. It speeds up the cash that comes back. Costs are a discount or service fee set by the lender, so compare the total charge for a typical invoice, not the headline rate.
3. Bank lending: overdraft, stock or import loans
High-street and specialist lenders in your country may offer an overdraft, a revolving facility or a short-term import loan that pays the supplier and is repaid when the stock sells. Expect to show accounts, cash-flow forecasts and sometimes a personal guarantee. The lender offers a limit and terms, and you accept them or not. Read how interest is charged (daily, monthly or as an annual rate) and add arrangement fees to the cost.
4. Letters of credit
With a letter of credit (LC), your bank promises to pay the supplier when it presents documents that match the LC's terms exactly, typically the invoice, bill of lading, packing list and certificates. Most LCs are issued under the ICC's UCP 600 rules; the ICC's eUCP 2.1, published in June 2023, is the supplement that allows LCs to be handled digitally.
| For you (importer) | For the supplier | |
|---|---|---|
| Protection | Payment only against documents showing shipment | Paid by a bank, not dependent on your cash |
| Cost | Issuing fees, and your bank may block cash or a credit line | Advising or confirmation fees |
| Main risk | A small document error can still delay or complicate payment | Discrepancies can delay payment |
An LC protects against non-shipment, not against poor quality. Add an inspection certificate to the required documents if quality matters (see pre-shipment inspection).
What about export credit agencies?
Government export credit agencies mostly back their own country's exporters, not importers. UK Export Finance's export insurance, for example, is for UK-based businesses selling abroad and requires at least 20% UK content. Export Development Canada's trade credit insurance covers Canadian exporters against non-payment by foreign buyers. If you also sell British or Canadian goods into Nigeria, these may help on that side. For importing Nigerian goods they rarely apply.
A worked example
Example only, with illustrative figures. An importer buys £20,000 of goods. Paying 100% upfront ties up £20,000 for about 90 days until customers pay. With a 30% deposit and 70% on arrival, only £6,000 is tied up for the sea voyage, and £14,000 for the shorter time from arrival to sale. If an invoice finance provider advances 80% of a £25,000 invoice to a supermarket and charges 2% of the invoice, the importer receives £20,000 early and pays £500 for it. That is worth it only if the early cash earns more than £500, for example by funding the next container sooner.
Choosing between them
- First orders with a new supplier: deposit and balance against shipping documents, or a letter of credit for larger orders.
- Regular orders with a trusted supplier: ask for supplier credit; it is cheaper than any lender.
- Selling to businesses on credit: invoice finance on your receivables.
- Seasonal peaks: a bank overdraft or import loan, agreed before you need it.
Where Pryme fits
Whichever route you use, timing the currency matters. A Pryme Business Account holds GBP, USD, EUR and NGN, and Swap converts only when you choose, with the rate and fee shown before you approve.
Questions people ask
Will a Nigerian supplier give me credit?
Some will after a track record of prompt payment. Start with a deposit and balance on arrival or against documents, and ask for credit terms once trust is built.
What rules govern letters of credit?
Most LCs are issued under the ICC's UCP 600 rules. eUCP 2.1, published by the ICC in June 2023, supplements them for digital presentation.
Can UK Export Finance help me import from Nigeria?
Generally not. UKEF's export insurance is for UK-based businesses exporting, with at least 20% UK content.
Is invoice finance useful for importers?
It can be if you sell to businesses on credit. It advances cash against your customers' invoices, so it speeds up money coming back rather than funding the supplier deposit.
Sources
- eUCP Version 2.1 (ICC, 29 Jun 2023) · accessed Oct 2026
- Incoterms 2020: FCA or FOB? (ICC Academy, 19 Nov 2024) · accessed Oct 2026
- Export insurance policy (UK Export Finance, GOV.UK) · accessed Oct 2026
- Trade credit insurance (Export Development Canada) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.