small business services. nedbank retail our focus focus on small businesses with annual turnover up...
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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 / 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 offeredDon’t Worry
Specialist 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