Small Business Services

Small Business Services




Small Business Services

Nedbank Retail

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
:


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 & Free

transactional 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 / growth

What 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



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 “v
alue
-
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

Contact details

Grant Kirkbride

(031) 2516429

Cell:
071 869 8600

GrantK@nedbank.co.za

Nedbank Retail