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

Contact details

Grant Kirkbride(031) 2516429Cell: 071 869 8600GrantK@nedbank.co.za

Nedbank Retail