Introduction to finfind

Welcome to finfind!

In this presentation, we give you an overview of

• How finfind seeks to improve access to SME finance

• What finfind is and does, and• What its developmental path has been

This is how we define the market challenge

Small & Medium Enterprises (SMEs)

Turnover: R200k – R20mBanked

All sectorsNot financially literate

Don’t access finance from FI’s

Financial Institutions(financiers)

Providers of finance, including, for example:Banks

Non bank financial intermediariesPrivate Funds

Business Development Service Providers (BDSPs)

Includingadvisors, mentors, coaches and

consultants to SMEs

1. How to increase access

to finance

2. How to assist BDSPs with

information about products and

providers of SME finance

3. How to assist SMEs with information about access to finance and to

prepare bankable applications

Only 2% of SMEs interviewed by FSP in 2008 claimed to have loans with financial

institutions

18 financial institutions (FI’s) who participated in FSP’s survey of hurdles to SME lending offer finance

to SMEs …

FSP research shows that most information about the financial sector is targeted at consumers

or is to promote products of particular institutions … Very

little comprehensive information exists for SMEs

In consultation with our partners, FSP developed a

framework of what the market needs to know about

1. Financial products for SMEs, and

2. Which institutions provide them

And agreed to target this at providers seeking to assist

SMEs to access finance.To begin with, we called it the

South African Guide to SME Finance

So the problem doesn’t appear to be a shortage of finance for SMEs but

unbankable applications, high barriers to access and lack of

information about what financial products and services are out there

…

FinanceNeeds

Types of finance

Sources of finance

How financiers

think

The application

processInternal financial LiteracyHow my business’s finances work

External financial LiteracyHow the world of

business finance works

Understanding your

business cycle

Your bookkeeping

systemUnderstanding

your margins

Understanding your financial

statements

The South African Guide to SME Finance was designed to focus on what we called “external” financial literacy

And then we called it …

What finfind is and does

• An online tool: www.finfind.biz• Designed to give BDSPs the information they need to

assist their SME clients to access finance• BDSP facilitates a step by step decision-making process

to help the SME– Identify the appropriate type of financial product to meet

their business need– Identify what FI’s offer those products

• Each step consists of a series of modules, each of which addresses a topic specific to that step, and which leads and links to related topics in the next step

Module 2.9Buying out a partner

Module 2.1Starting up

Module 2.2Buying a business

Module 2.3Buying

machinery

Module 2.4Financing

working capital

Module 2.5Financing a contract

Module 2.6Expansion

finance

Module 2.7Buying a building

Module 2.8Emergency

finance

Module 3.1Equity finance

Module 3.2Term loan

Module 3.3Overdraft

Module 3.4Debtor finance

Module 3.5Supplier credit

Module 3.6Contractfinance

Module 3.7Asset finance

Module 3.8Export finance

Module 3.9Personal credit

Module 3.10Client deposits

Module 4.1Family and

friends

Module 4.2Suppliers

Module 4.3Banks

Module 4.4Debtor

financiers

Module 4.5Niche SMEfinanciers

Module 4.6Govt

agencies

Module 4.7Angels and

VC Funds

Module 4.8Export credit

Module 4.9Personal finance

products

Module 4.10Client deposits

and SA law

Module 5.1Asking family

and friends

Module 5.2Applying for

supplier credit

Module 5.3Applying for bank finance

Module 5.4Applying for

debtor finance

Module 5.5Applying for an SME loan

Module 5.6Dealing with govt agencies

Module 5.7How VC

funds think

Module 5.8Applying for export credit

Module 5.9Getting

personal finance

Module 5.10Asking clients

for deposits

Step 2: Identify your client’s finance need and the types of finance best suited to it

Step 3: Choose the type of finance

Step 4: Find the right financier

Step 5: Prepare your client to approach the financier

Step 6: Help your client manage the outcomeModule 6.1When your

application fails

Module 6.2Managing

Your finance

Module 1Start here

Module 2.10Buyiing a franchise

About the Guide

Being a finance facilitator

Managing bad credit

Step1: Determine whether your client really needs finance

Finfind took a long time to develop … working with lots of

people, consulting with SME consultants along the way. We

couldn’t do it alone …

Finally, we invited a group of SME consultants to test the

product we’d developed and tell us what they thought of it …

THEY LOVED IT!

What is the next step?

The development of finfind is complete and now we need to identify a partner to

institutionalize and commercialize finfind …

The next step is an invitation to interested organizations to bid via open tender to host

finfind

Key dates for tender processTASK Completion DateRFP released / Ad in Sunday Times Sunday, 10th July 2011

Submit Expression of Interest (EOI) & indication of intention to attend Bidder’s Conference

Monday 18th July 2011

Bidder’s Conference Tuesday, 26th July 2011

Written questions due to FSP 12h00, Friday, 5th August 2011

Q&A and changes from Bidder’s Conference provided to bidders

Friday, 12th August 2011

Proposals due at FSP office 17h00, Thursday 1st September 2011