Mandisa Ndlovu - Funding Your Business

1. Role of Commercial Banks in
Entrepreneurships
• Enablers of Economic Activity
• Core Function is Credit Creation

2. How Commercial Banks work?
• Acceptance of Deposits
• Deposits used for loans
• Governance and Strict Credit lending

3. Typical Business Banking Products

4. What Banks look for when Lending?
Affordability
Security
Credit History/Track Record

5. Entrepreneurs Funding Stallers
• Non viable business model/business plan
• Business Financial Affairs not Separate from Personal Affairs
• Judgements on Credit Records
• Excesses on transactional business accounts
• Availability of latest Financial information
• Overly Optimistic Budgets and Cash Flows

6. Commercial Funding Ready
ü Viable Business Model
ü Detailed Explanation of the intent of the loan
ü Latest Signed Financial Statements: Profitable and Healthy Balance Sheet
ü Realistic Healthy Cash Flows
ü Latest Management Accounts
ü Collateral
ü Clean Credit Record
ü Healthy Account Behavior