Small Business Services

confidencetoughManagement

Nov 20, 2013 (3 years and 11 months ago)

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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