This document discusses the challenges of providing credit and financial inclusion to small and medium businesses in developing countries, referred to as the Base of the Pyramid (BoP). It notes that over 3 billion commercial entities lack access to finance due to a lack of data and high perceived risk. The document then introduces nC's solutions which involve using data to de-risk lending and structure cash flows through data products and engines. These solutions include offering commercial loans, shares, and impact grants through their nanoLender platform to help achieve financial inclusion for small businesses.

1. 2015

2. Credit
Missing
Middle
Challenge
at the
Base of he
Pyramid
( BoP ):

3. Scalable across all
small-medium business types …

4. … incl. small-medium farm-types.

5. Large-scale ~ 3 billion commercial lives
No or Sparse Data at Account Level
Perceived High ( Credit ) Risk
Excluded from Access to Finance
Unstructured Market
Literacy & Digital Gap
No Collateral
BoP Challenges are:

6. Miniaturisation & Digitisation
Data Centric & Structured Approach
Data Service & Products
Data Engines to Build Bankable Data
Data Engine to De-Risk
Data Engine to Structure Cash Flow
Finance
nC’s Solutions for BoP Challenges :

7. 2 Solution Services …

8. Term
Sheet
& Supporting Docs.
Start-Up
Manual
& Supporting Docs.
Business
Inclusion
Financial
Inclusion
3 Data-Products …

9. Commercial
Loan / Debt
Commercial
Share / Equity
Impact Grant
ROE-targeting
= 30%
Margin-setting
= 300 bps
High Impact
= Index Tracking
USD 70
USD 20
USD 10
nanoLender™
with Co-Funding Automation
USD 100 =

10. 100
ha. 1,000
heads
50
tons per
month
R 0.3M
R 5 M
R 2M
“Spar“
R 16M
3rd Data-Product
Structured Credit
Network

11. Disclosure, subject to Arrangements.
Business Model:

12. Revenue Model:
Disclosure, subject to Arrangements.