small business services
DESCRIPTION
Small Business Services. Small Business Services. Our Focus. Focus on s mall businesses with annual turnover up to R 7.5 million. Market segmentation allows for a greater focus o n a market that has diverse and specific needs Specific segments include : - PowerPoint PPT PresentationTRANSCRIPT
Small Business Services
Small Business Services
Nedbank Retail
Our Focus
• Focus on small businesses with annual turnover up to R 7.5 million.
• Market segmentation allows for a greater focus on a market that has diverse and specific needs
• Specific segments include: Start-up businesses (not yet started, less that 2 years old) Small sized franchises (e.g. Vodashop, Captain Doregos,
Romans Pizzas) Small professional entities (e.g. doctors, dentists, accountants,
lawyers, engineers ) Established small business (older than 2 years - general service,
retailing & manufacturing concerns)
Nedbank Retail
Why Do Businesses Fail?Poor Management of
Financial Activities 34%
Union Problems 6%
Staffing Problems 9%Sales & Marketing Problems
11%
Poor Bookkeeping & Records 12%
Inflation & Economic Conditions 12%
Lack of Management Competence 16%
Nedbank Retail
Market Challenges
• Access to markets Opportunities Capital
• Financial Acumen
• Business formalisation
• Access to Support Services/growth partners
• Lack of Collateral
Nedbank Retail
Our Offer
Through our understanding of self-employed and challenges they face we provide ‘banking’ given their unique requirements as well as ‘value added’ offers that will assist with their success.Banking….• Focussed segmentation approach delivering banking given the unique
criteria and needs of a segment…focus on start-up and franchise• Relationship Model that supports the segmentation strategy via dedicated
relationship managers and small business services staff in branches• Specialist unit to focus on start-ups • A credit philosophy and policies aligned to the segment focussed
approach• Service efficiency and excellence• Unique start-up offer• Value adds as part of the start-up offer and available to non-start ups.
Nedbank Retail
Unique Start-up Offer
• We have a specific offer to assist start-up businesses in their success.
Finance & Freetransactional banking
Business Registration Mentorship
Khula
Free financial training franchisees
Free business seminars
Nedbank Retail
Free Banking
• Targeted at Start-up businesses (under two years)
• Take out a minimum R100 000 loan size and qualify for FREE:
Unlimited Cash Deposits Unlimited Debit Orders Unlimited Cheques from own cheque book Unlimited Internet Banking
Market First !
Nedbank Retail
Added Value – Business Registration
• Business Registration via Swiftreg – a strategic partner• Nedbank Small Business Services Representative in a
branch will facilitate the process• Existing and new clients – Nedbank Small Business
Services current account as primary account • Pure value add to our clients (also available to non-start-
ups)• Cost
CCs - shelf and new = R360 (Pty) Ltd shelf = R1065 (Pty) Ltd new = R950 Cost for the service paid by the client directly to
SwiftReg.
Nedbank Retail
Added Value - Mentorship
• Delivered by Business Partners – one of our strategic partners
• On application for finance or turnaround mentorship
• Across various disciplines e.g. finance, marketing, start-up, franchising.
• Nedbank makes a financial contribution to the mentorship cost.
Nedbank Retail
Added Value - Khula Agreement• Nedbank first to sign revised Agreement
• Loan size
R10 000- R250 000 (90% Indemnity Cover)
R250 001-R1 000 000 (80% Indemnity Cover)
R1 000 001-R3 000 000 (70% Indemnity Cover)
• Developmental Focus
Rural Focus
Women owned businesses
Bottom-end Lending focus
Nedbank Retail
Our Products and Services What is finance required for
Duration of finance requirements
Facilities available
Working capital Short-term Overdraft facility
Debtors Debtor finance
Stock Guarantees
Short term loans
Fixtures & fittings Medium - term Asset based finance
Plant & equipment - Instalment sale
Vehicles - Lease
Renovation of premises - Rental
-Medium term loan
Property finance Long - term Home loan
Commercial property finance
Nedbank Retail
Funding the start-up / growthWhat does the bank need ?
• Comprehensive Business Plan
• Cash Flow Projections
• Information on the owner (s):
– CV and ID,
– personal statement of assets and liabilities
– Personal account bank statement
Nedbank Retail
Funding the start-up / growth(cont...)
What the bank needs (cont....)
• Business financial information and bank statements
• Other relevant documents
• Own contribution
• Security offered Don’t WorrySpecialist Manager
On Call
Nedbank Retail
What the bank considers
• The business owner’s character and personality traits
• Experience of the business owner
• The viability of the business in respect of:
• Location
• Competition
• Suppliers
• Growth potential etc, etc
• Quality of business plan/projections
Nedbank Retail
Our Approach
Nedbank Retail
Concluding Remarks
• We specialise in Small Business (dedicated division)• Focus on Black owned businesses. • Dedicated Nedbank Small Business Services
representation• Differentiated credit lending model catering for the
diverse needs of the small business market.• We offer “value-added” services business through
strategic partnerships namely mentorship, business registration, free financial franchise training, risk underwriting, business management seminars.
• Our value proposition is underpinned by service efficiency & excellence.
Nedbank Retail