Accessing External Finance by Offiong Okon

A presentation by Sterling Bank representative at the AWLO 500 Initiative.

Transcript

1. ACCESSING EXTERNAL FINANCE PRESENTED BY: OFFIONG OKON
2. Outline Objective/Overview Sources of finance Types of Loans Sterling One woman proposition
3. Objectives To understand the basic type of finance required for your business To understand how to raise funds for your business To know where to go for the kind of funding required If you don’t know where you’re going, you may end up somewhere else.” - Casey Steng
4. Starting a business is one of the aspects that entrepreneurs find most daunting is raising start-up capital. Launching a new business requires much skill and preparation. Entrepreneurs may not have the resources to raise capital in order to market their new business ideas. Before a new business owner can raise capital for their startup, they must first identify the different sources of funding, find one that is most comparable with their needs, and then meet the given criteria of the investor or bank. These crucial steps can mean the difference between having the opportunity to successfully raise capital and leaving their new business ideas behind. OVERVIEW
5. SOURCES OF FINANCING PERSONAL SAVINGS CREDIT CARDS RETIREMENT ACCOUNTS FAMILY AND FRIENDS VENTURE CAPITALIST EQUITY (SALE OF PROPERTIES) LOANS
6. LOANS – MAJOR TYPES LOANS TERM LOAN  Fixed Monthly Instalment  Tenor is usually Short, Medium or Long  Repayment of both interest and principal is Amortized. OVERDRAFT  Access to draw down on unfunded account  Flexible payment Option.  Tenor is usually 12months with rollover options and clean-up cycle.  Bullet repayment of principal on expiration of the loan period.
7. Powered by Sterling Catering to the needs of Nigerian Women
8. “A Woman’s Best Protection is a little money of her own” Clare Boothe Luce
9. WHY WOMEN ? • Women make up 40 percent of the world’s workforce. *World Bank, • In Nigeria, adult women constitute 47.5 million of Nigeria’s population and only 30% of this population are banked. *Efina Access to Financial Services in Nigeria Survey 2016. • It is estimated that almost 60% of all Nigerian women will have to manage their own finances at a time in their lives.*Central Bank of Nigeria, 2001. • The female market segment is also important because the wealth of Nigeria will increasingly lie in the hands of women as the population ages and as the life expectancy of women continues to exceed that of men.
10. Our Purpose: As a financial institution, our purpose is “enriching lives‘’. • Empowering women • Impacting Social and Environmental development through women The Sterling HEART: • Health • Education • Agriculture • Renewable Energy • Transport Our Process:
11. What You Need
12. One-Woman comprises an array of value-add offerings developed to meet financial, business and personal needs of the working Nigerian woman as well as creating a platform to enable women supporting women. What We Offer CONTD: Customized Cards (Debit/Credit) Discounted Loans for Business Women Discount Partners One woman Website Financial Literacy Engagements Investment Opportunities
13. What We Offer PRODUCTS Business Accounts Investment Accounts FEATURES •1.Business registration •2. NO COT/AMF •3. 2% less on prevailing interest rate on loans • 4.Access to N 5million Un-secured loans. •5.POS Finance •6. SPECTA 1. Double 2. I-Invest 3. Gold Investment
14. PERSONAL LOAN OFFERINGS SPECTA BASIC SPECTA EXTREME RETAIL LOANS
15. BUSINESS LOAN OFFERINGS UNSECURED /SECURED OVERDRAFT POS RECEIPTS FINANCE FACILITY (UNSECURED OVERDRAFT) WORKING INVESTMENT FACILITY (UNSECURED TERM LOAN) TERM / TIME LOAN: (LEASES, IDF, LPO ANDCFF)
16. BUSINESS LOAN OFFERINGS – Cont’d Unsecured Overdraft (O/D) POS receipt finance Facility (unsecured O/D Secured O/D Loan Amount Up to N2.5million max subject to 50 % of average monthly credit turnover with Sterling Bankover 3 months (12 months statement from other bank is required to validate turnover) Up to N2.5million max subject to 60 % of average monthly credit turnover with Sterling Bank over 3 months. (12 month statement from other bank is required to validate turnover) Up to N25million max subject to 5 0 % of average monthly credit turnover with any Bank(12months statement fromother bank is required to validateturnover) TENOR 12monthswith30days clean up cycle (meaning account must swingintocreditatleastonce withinthe30days) 12monthswith30days clean up cycle (meaning account must swingintocreditatleastonce withinthe30days) 12monthswith90 daysclean up cycle (meaning account must swingintocredit at leastonce within the 90days) Qualifying Condition Customer must run account with Sterling Bank for a minimum of 3months 2 0 % of the turnover must be conducted via Sterling BankPOS Customer must run account with Sterling Bank for a minimum of 3months Turnover covenant Credit turnover post-disbursement must be at least 150% of credit turnover pre- disbursement Creditturnoverpost- disbursement must be at least160%ofcredit turnover pre-disbursement Creditturnoverpost- disbursement must be at least150%ofcredit turnover pre-disbursement
17. BUSINESS LOAN OFFERINGS – Cont’d Working Investment Facility Unsecured Term loan Term /Time Loan Loan Amount Up to N2.5million max subject to 50% of averagemonthly credit turnover withSterlingBankover 3months(12months statement from other bank isrequired to validate turnover) Up to N20millionmax TENOR 12months Max 48 months subject to business size (for lease) For IDF andLPO/CFF tenor mustbe shortand self liquidating notmorethan 90 days. Bank funding must be limited to invoices from credible counterparties and evidence of workdone Qualifying Condition • Customer mustrunaccount with SterlingBankfora minimumof 3months • Mustbe an FCMG /cottage industry manufacturer ortrader Max. 7 0 % of the average monthly positive net credit turnover of the customer (overa period of12 monthsaccount statement with the Bank orany other Bank)shallbe requiredto servicethe loan rentals Turnover covenant Creditturnoverpost-disbursement must be at least 100%ofcredit turnover pre-disbursement and loanamount At least 2 5 % of its credit turnover with other bank(s) –where applicable Contribution N/A 20 - 3 0 % (forleases)
18. THANK YOU For more information, kindly log on to www.sterling.ng/onewoman or send a mail to onewoman@sterling.ng Or Call Offiong – 08035027509 or Nkoyo - 08057422832