Diamond bank: financing options for SMEs

1. 1
16 JANUARY 2017
VCONNECT SME EVENT.

2. 2
WHAT ARE THE FINANCING OPTIONS AVAILABLE TO SMES?
Equity financing
raising capital through the sale of
shares in an enterprise. It
essentially refers to the sale of an
ownership interest to raise funds for
business purposes
Debt financing
borrowing money without giving up
ownership of a given enterprise.

3. 3
SOURCES OF FINANCING OPTIONS AVAILABLE TO SMES
Friends
and Family
i.e. Love
Money
Venture
Capitalists/
Angel
Investors
Crowd
funding
Financial
Institutions
Business
Incubators
Personal
Investment

4. 4
FINANCING SOURCES
S
/
N
OPTIONS HOW TO
QUALIFY
PROS CONS TYPE
1 Family and friend
loan
No mix or max,
interest rates vary
Must have a willing friend
or family member, and
loan should be in writing
Cheap and
convenient
Things can get awkward if
you’re unable to pay back the
loan
Debt Financing
2 Venture capital /
Angel investors
No min or max, no
interest rate
Your business must have
the potential for high,
rapid growth
No debt to pay off Investors will want some control
over how the business is run
Equity Financing
3 Crowdfunding
No min or max, no
interest rate
Convince a large number
of people to invest a
small amount of money
in your business
No debt to pay off All-or-nothing funding models
may mean a lot of work without
any reward
Debt Financing
4 Financial Institutions Must have a banking
relationship with the
Bank
Structured loan Double digit interest rates
which may be a burden on the
business
Debt Financing

5. 5
FINANCING SOURCES (CONT’D)
S
/
N
OPTIONS HOW TO
QUALIFY
PROS CONS TYPE
5 Personal
Investment
Owner must
have funds
saved.
No interest
rate
Usually the owners
savings so he
bares the
Debt
Financing
6 Business
Incubators
Business
should have
potential for
growth and be
able to repay
the investment
of the
incubator
The
business
does not
make any
initial
outlay.
Business needs to
repay initial
investment of the
incubator
Equity
Financing

6. 6
FINANCING SOLUTIONS AVAILABLE IN DIAMOND BANK
Emerging Businesses
Loans
Mediloan
QualityCare
School Loans
CBN
interventions

7. 7
NON-FINANCIAL SERVICES
-Diamond Business Seminar
-Diamond Business Club
-Diamond Business Clinic
-BET Series-Collaboration with EDC
-Business Registration Services
-Partnerships with Multinational Organizations
on seminars, workshops, networking events.

8. 8
BUILDING ENTREPRENEURS TODAY 6 (BET6)
The Building Entrepreneurs Today (BET) programme is one of Diamond Bank’s
Corporate Social Responsibility initiatives aimed at raising the level of
entrepreneurial skills and knowledge in Nigeria.
Since 2010, Diamond Bank has partnered with the Enterprise Development
Centre (EDC) of the Pan Atlantic University in training and nurturing micro,
small and medium scale businesses under the BET programme.
It aims to inculcate in small business owners the fundamentals of developing
entrepreneurship competency, business acumen and the stamina to build and
grow businesses over a period of six months. At the end of the training, the top
five (5) entrepreneurs are selected and awarded a Three Million Naira (N
3,000,000) grant each to take their businesses to the next level.
Last years edition tagged BET6 was streamlined to focus on three key sectors,
namely: Health, Agriculture and Education as these sectors have the
potential to impact the economy significantly.

9. 9
16 JANUARY 2017
Thank you