Finfind's story


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Finfind's story

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