2. Welcome to finfind! In this presentation, we give you an overview of How finfind seeks to improve access to SME finance What finfind is and does, and What its developmental path has been
3. This is how we define the market challenge Providers of finance, including, for example: Banks Non bank financial intermediaries Private Funds Financial Institutions (financiers) 1. How to increase access to finance 2. How to assist BDSPs with information about products and providers of SME finance Small & Medium Enterprises (SMEs) Business Development Service Providers (BDSPs) Turnover: R200k – R20m Banked All sectors Not financially literate Don’t access finance from FI’s Including advisors, mentors, coaches and consultants to SMEs 3. How to assist SMEs with information about access to finance and to prepare bankable applications
4. 18 financial institutions (FI’s) who participated in FSP’s survey of hurdles to SME lending offer finance to SMEs … Only 2% of SMEs interviewed by FSP in 2008 claimed to have loans with financial institutions So the problem doesn’t appear to be a shortage of finance for SMEs but unbankable applications, high barriers to access and lack of information about what financial products and services are out there … In consultation with our partners, FSP developed a framework of what the market needs to know about Financial products for SMEs, and Which institutions provide them And agreed to target this at providers seeking to assist SMEs to access finance. To begin with, we called it the South African Guide to SME Finance FSP research shows that most information about the financial sector is targeted at consumers or is to promote products of particular institutions … Very little comprehensive information exists for SMEs
5. The South African Guide to SME Finance was designed to focus on what we called “external” financial literacy Types of finance External financial Literacy How the world of business finance works Sources of finance Finance Needs How financiers think Understanding your business cycle Your bookkeeping system Understanding your margins The application process Understanding your financial statements Internal financial Literacy How my business’s finances work
7. What finfind is and does An online tool: www.finfind.biz Designed to give BDSPs the information they need to assist their SME clients to access finance BDSP facilitates a step by step decision-making process to help the SME Identify the appropriate type of financial product to meet their business need Identify what FI’s offer those products Each step consists of a series of modules, each of which addresses a topic specific to that step, and which leads and links to related topics in the next step
8. Module 2.9 Buying out a partner Module 2.1 Starting up Module 2.2 Buying a business Module 2.3 Buying machinery Module 2.4 Financing working capital Module 2.5 Financing a contract Module 2.6 Expansion finance Module 2.7 Buying a building Module 2.8 Emergency finance Module 3.1 Equity finance Module 3.2 Term loan Module 3.3 Overdraft Module 3.4 Debtor finance Module 3.5 Supplier credit Module 3.6 Contract finance Module 3.7 Asset finance Module 3.8 Export finance Module 3.9 Personal credit Module 3.10 Client deposits Module 4.1 Family and friends Module 4.2 Suppliers Module 4.3 Banks Module 4.4 Debtor financiers Module 4.5 Niche SME financiers Module 4.6 Govt agencies Module 4.7 Angels and VC Funds Module 4.8 Export credit Module 4.9 Personal finance products Module 4.10 Client deposits and SA law Module 5.1 Asking family and friends Module 5.2 Applying for supplier credit Module 5.3 Applying for bank finance Module 5.4 Applying for debtor finance Module 5.5 Applying for an SME loan Module 5.6 Dealing with govt agencies Module 5.7 How VC funds think Module 5.8 Applying for export credit Module 5.9 Getting personal finance Module 5.10 Asking clients for deposits Module 6.1 When your application fails Module 6.2 Managing Your finance Module 1 Start here Module 2.10 Buyiing a franchise About the Guide Being a finance facilitator Managing bad credit Step1: Determine whether your client really needs finance Step 2: Identify your client’s finance need and the types of finance best suited to it Step 3: Choose the type of finance Step 4: Find the right financier Step 5: Prepare your client to approach the financier Step 6: Help your client manage the outcome
9. Finfind took a long time to develop … working with lots of people, consulting with SME consultants along the way. We couldn’t do it alone …
10. Finally, we invited a group of SME consultants to test the product we’d developed and tell us what they thought of it … THEY LOVED IT!
11. What is the next step? The development of finfind is complete and now we need to identify a partner to institutionalize and commercialize finfind … The next step is an invitation to interested organizations to bid via open tender to host finfind
