First Bank - A Case Study in Business

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Christal Hardy
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1 ACCESS TO CAPITAL: SHOW ME THE MONEY NOVEMBER 26, 2013 CECILIA MAJEKODUNMI HEAD, EMERGING CORPORATES

2 1 OUTLINE Background: Small and Medium Scale Enterprises Accessing Finance for your Business - Context Setting Expectations from the Bank Financing your Business First Bank Solution Product Offering Questions & Answers

2 BACKGROUND Small and Medium Scale Enterprises are the category of Enterprises with fewer than 10 employees and an Asset Base of N5million to N500million.

3 2 BACKGROUND Small and Medium Scale Enterprises are the category of Enterprises with fewer than 10 employees and an Asset Base of N5million to N500million. In developing and developed countries across the globe SMEs have been identified as the engine of growth in the economy, providing employment to thousands of people and contributing significantly to the gross domestic product (GDP). SMEs are making their mark on the economic landscape due to their strategic importance in reengineering various sectors of the economy. SMEs have unique advantages over bigger businesses: they are substantial generators of employment, can act as shock absorbers during a crisis, respond more readily to vagaries of the market, can fulfill market expectations quickly and they provide a wide range of products and services often at affordable prices. This sector of the economy can no longer be ignored and FirstBank through this conference seeks to highlight the various issues faced by SMEs and through the panelist discussions proffer some answers to these issues.

4 3 ACCESSING FINANCE FOR YOUR BUSINESS - CONTEXT SETTING Raising finance and business funding is a crucial launch pad for any new and growing business. In an uncertain market, it s the smaller end of the business segments that suffers most as banks and investors have preference for established companies where the risk is lower and the likelihood of a sizeable and quick return on investment is more probable. The focus is on visibility of profits sooner than later. Raising capital is always a challenge for pre-revenue companies without an existing customer base and historic financial accounts. There is however, a strong move by the government to mitigate some of the funding challenges through initiatives such as the SME s (small and medium scale enterprises) along with tax incentives for start up businesses.

5 EXPECTATONS FROM THE BANK CAC DOCUMENT GOOD KNOWLEDGE OF BUSINESS COMPANY & MANAGMENT PROFILE PROJECT BUSINESS PLAN TAX IDENTIFICATI ON NO. BANK STATEMENT FOR EXISTING BUSINESS 4 4

6 5 FINANCING YOUR BUSINESS FIRST BANK SOLUTION. First Bank of Nigeria Limited. is known to be the Banker for Nigerians as we offer a wide variety of products that are designed to meet the needs of individual, Small and Medium Scale Enterprises. Apart from ensuring that all customer s request have a turn around time of 72hours after receipt of all necessary documents, First Bank has also designed specialised products to meet the needs of SME s such as; Term Loans : A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 5 years. Example of Term Loans offered by us are Mortgage Loans, Vessel Finance, Leases etc. Short cycled Loans: Any loan that must be repaid or refinanced within one year. Example are Overdraft Facilities, Stock Replacement Facilities, Invoice Discounting, Local Purchase Order Financing, Oil and Gas Contract Finance, Distributorship Finance, Bonds and Guarantees Financial Advisory Services: We offer Financial Advisory Service to guide you in taking sensitive decision such investment management, Equity Financing etc

7 6 PRODUCT SUMMARY FIRST BANK. TYPE TARGET MAKET FACILITY/ TRANSACTION TENOR Import Finance Facility Trading Companies and Importers of Finished 12Months/120Days Import Duty Finance Trading Companies 12Months/120Days Key Distributorship Finance Invoice Discounting Facility Distributors for Multinationals Contractors to FMCG and Corporates bodies 12Months/ 90 Days 12Months/ 30 Days Bonds & Guarantees SME s 12Months Oil and Gas Contract Finance Oil Service Companies 12Months/ 90 Days Stock Replacement Facility Distributors for Oil Companies 12Months/ 120 Days

8 7 CONCLUDING REMARKS Making the world a better place incrementally is a better way to think about starting a business and Financing it. Small changes by millions of entrepreneurs are what really will have an effect on our Economy and the lives of people. Be rest assured that First Bank is your preferred partner in taking you and your business to the next level. We look forward to your patronage

9 Thank you 8

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