---
title: "BFree Gets $3m Debt Funding to Buy Non-Performing Loans"
description: "Nigeria’s BFree has secured $3m in debt funding from Verdant Capital Hybrid Fund to buy and restructure bad loans across African lenders."
canonical_url: "https://liners.com/news/bfree-3m-debt-funding-non-performing-loans"
markdown_url: "https://liners.com/news/bfree-3m-debt-funding-non-performing-loans.md"
type: "article"
language: "en"
published_at: "2026-04-21T18:00:41.954Z"
updated_at: "2026-04-25T13:15:42.347Z"
---

# BFree Gets $3m Debt Funding to Buy Non-Performing Loans

Nigeria’s BFree has secured $3m in debt funding from Verdant Capital Hybrid Fund to buy and restructure bad loans across African lenders.

## Breadcrumbs

- [News](/news)
- [BFree Gets $3m Debt Funding to Buy Non-Performing Loans](/news/bfree-3m-debt-funding-non-performing-loans)

## Content

## In Short
BFree, a Lagos-based debt recovery startup, has raised $3 million in debt funding. The capital will be used to buy and restructure non-performing loans, which are loans that borrowers have stopped repaying.

## What Happened
[BFREE](/bfree) secured a $3 million debt investment from Verdant Capital Hybrid Fund, a Johannesburg-based fund focused on inclusive finance in emerging markets.

The company said the funding will help it purchase distressed loan portfolios from African financial institutions. A distressed portfolio is a batch of troubled loans that a lender wants to remove from its books.

BFree was founded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor. It runs an AI-powered platform that profiles borrowers, predicts their ability to repay, and guides how the borrower is contacted, using data patterns and agreed rules.

BFree says it has managed over $740 million in distressed loans and reached 6.6 million borrowers across Nigeria, Ghana, and Kenya. It also says it works with more than 30 financial institutions, including digital lenders and regulated banks.

## Why It Matters
Non-performing loans can lock up capital inside banks. If banks can sell or outsource recovery, they can free up liquidity, which means more money available for new lending.

Debt buying and recovery has been difficult to scale in many African markets due to weak borrower data, legal friction around transferring loans, and unclear pricing. BFree is betting that better repayment prediction and stricter borrower communication standards can make the model work at scale.

Verdant Capital’s deal also includes access to a technical assistance facility. That support can help BFree improve systems and processes as microfinance and buy-now-pay-later lending grows across the continent.

## Sources and products

- [Techinafrica](https://www.techinafrica.com/bfree-secures-new-funding-to-buy-up-africas-bad-loans/)
- [BFREE](/bfree)

## Related pages

- [Funding & Acquisitions](/news)

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