Small and Medium Enterprises (SME) Loans

working capital finance


SME loans is a financial products targeted at people involved in economic generating activities precisely defined as business entrepreneurs.
 
Market analysis has shown that business people are profiled in two segments:
 
4.1 Small Business entrepreneurs:


These are people involved in small legally economic activities and their daily turnover is normally between K1,000 to K2,000 per day. Market characteristics of this market segments has shown that most of these business people do not have adequate security to support their loan request and most conduct their economic activities within their neighborhoods or central trading places e.g. markets.
Most of these clients do not have formal trading and regulatory requirements such as trading license, tax documents, etc.
One such product that fits in this target market is the group loan scheme.

The requirements are as follows:

  • Amounts ranging from K1,000.00 to K20,000.00
  • Bi-weekly or monthly
  • Turn round period ;5/7 working days
  • Security; Self guarantee and savings for the group will also act as security
  • Sector; Informal especially marketers, cooperatives

 

4.2 Medium & large business entrepreneurs:

People in this market segment are business people whose daily turnover is above K 10,000.00 per day and the size of their business is medium to large requiring a financial need. Most people have formal and recognizable business places and meet most regulatory statutory requirements e.g. trading license, tax payments etc.

Most people in this market segment have economic assets (collateral) and society generally regards these people as well to do business people.
Current products that can fall in this sector are individual working capital loans, order finance invoice discounting and bridging finance.

The requirements are as follows:

  • Minimum amount K50,000.00
  • Tenure 1 to 6 months
  • Turn round Period; 5/7 working days
  • Security; Landed property