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How to Put your Small Business in the Best Position to Get Credit from a Bank

There are specific ways in which you can reassure a bank that your business is capable of repaying any money they lend you, increasing your chances of acquiring credit

Standard Bank

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Small and medium enterprises (SMEs) account for almost half of South Africa’s gross domestic product (GDP), up to half the formal wage bill, and some 60% of private sector employment. So, most banks feel it is important to find ways to give SMEs access to finance to increase the positive effect they have on the national economy.

Related: How to Fund your Small Business

The trouble is, though, that banks are strictly regulated, because they are responsible for the billions of rands entrusted to them by individuals and businesses. In other words, like SMEs, banks play a vital role in the economy. They cannot put themselves at risk by lending money to small businesses that might fail.

As a result, they have standard processes and procedures for assessing the credit readiness of a business and how likely it is to repay what it borrows.

Get credit ready

“As the bank for entrepreneurs, we focus on making access to credit possible and, therefore, take different approaches to helping SMEs get to credit readiness,” says Ethel Nyembe, Head of Small Enterprise at Standard Bank.

“We believe that credit is only one element of an SME’s financial responsibilities. So, it should not become a burden to the business. For that reason, our Small Enterprise unit offers basic affordable banking services that enable small businesses to build financial records and capacity.

We then add to these services, tools, such as our small business portal, that enable SME owners and managers to build their financial management capabilities.

“We also provide our SME customers with credit solutions that range from simple overdrafts and asset (vehicle) financing, to working capital and property finance services. These are complemented by payment, investment, risk management and cash management solutions designed to help them improve their credit worthiness.

“More than 90 of our relationship managers around the country are trained to provide these services. It’s worth taking the time to talk to them to understand what you need to do to help us help you.”

Get the 5 C’s in place

Another way of doing this is to follow the bank framework of the ‘five Cs of getting ready for credit:

  1. The first C is for ‘character’ and relates to your personal records, behaviours and attitudes. You need to show a good record of repaying debt, a good record in the industry in which you operate (including qualifications, certification, industry networks, and customer base), how committed you are to your business in terms of the time and money you have invested, and how much business management capability you have.
  2. Then there’s ‘capacity’. This relates to your business’ ability to repay specific amounts at specific times. Can you afford the new debt? How strong is your cash flow? How reliable is your income and will there be money in the bank on the day you need to make repayments?
  3. Capital’ refers to how much your business is worth in rand terms, how much you and other investors have put into the business, and whether you have other means of settling your debt if the business cannot.
  4. Collateral’ is about the assets you agree to use to repay the bank if your business cannot.
  5. The last C, ‘conditions’, takes into account external factors that could affect your business. Environmental conditions refer to the general state of your industry and the area where you trade, consumer demand, the state of the national economy, your competition, and the banks’ risk appetite as a result of all these factors. ‘Conditions’ also includes the purpose for which you need finance. You need to show that the loan will be used to develop the business instead of getting it out of trouble.

“Any owner of an SME who comes to us with as many of the five Cs in place as possible already demonstrates that they are serious about their business and about interacting with the bank responsibly,” says Nyembe. “It’s a great way to start a business banking relationship with us.”

Standard Bank SA is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets. Standard Bank SA provides the full spectrum of financial services, with more than 720 branches and over 7 100 ATMs. Independent surveys of customer satisfaction consistently place Standard Bank at or near the top of their rankings. The personal and business banking unit offers banking and other financial services to individuals and small-to-medium enterprises. For further information, go to community.standardbank.co.za

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Call For Applications: Young Entrepreneurs Global Exposure Trips

Closing Date: 30 November 2018

Investec Specialist Bank and Asset Management

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Investec CSI’s Young Entrepreneurs Programme provides South African entrepreneurs from various sectors with global exposure.

Every year Investec, in partnership with En-novate, sends a group of young entrepreneurs from various sectors to specifically selected countries in order to gain global exposure. Each itinerary provides them with opportunities to network and engage with venture capitalists, funders and captains of their specific industry. The aim is for them to gain learning and exposure to innovation, technology and process advancements. The programme also offers networking with subject and sector experts.

Applications for the Global Exposure trips are now open to ALL entrepreneurs – regardless of sector – who meet the criteria. Closing date is Friday 30 November 2018.

Applications link:

https://www.investec.com/en_za/welcome-to-investec/corporate-responsibility/our-community/Entrepreneurship.html

The programme itinerary and each trip is customised according to the profiles of the candidates, stage of business and specific sector.

By way of example, Investec recently sent 14 entrepreneurs from South Africa to Berlin to meet people doing Out of the Ordinary things in textiles: https://www.investec.com/en_za/focus/young-entrepreneurs/sa-entrepreneurs-return-inspired.html

Related: En-novate Goes Toe-To-Toe With The Best In The World

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Buy Or Invest In The Next Futuredev Properties Sandton Development

Looking to buy or invest in the next up and coming Sandton residential development? Futerdev Properties are currently developing Full-Title Free standing units, perfectly located just a few km’s away from the hustle and bustle of Sandton’s Central Business District.

Futuredev Properties

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Nearly half of all the office development taking place in South Africa right now is happening in Sandton. Sandton Central is the epicentre of this development, which includes many of the most cutting-edge, exciting and innovative new buildings on the continent.

Sandton Central is well established as Africa’s financial and business capital and continues to grow with developments that embody its vibrant, high-energy ‘live, work, play’ environment. It also currently holds the title of Africa’s Riches Square Mile.

With more people looking to be part of this live, work, play environment and the number of foreigners travelling to Johannesburg for business and work, the demand for residential property around Sandton Central has grown exponentially.

Live, Work And Play: Your Home Away From Home

Futuredev Properties specialises in developing Full-Title Residential Homes in the Sandton Area – Morningside and Bryanston to be specific. The most recent surveys have listed Bryanston as one of the better performing suburbs in terms of Capital Growth.

Our properties offer family living and a home-away-from-home feeling for those working in and around Sandton on longer or shorter assignments.

FutureDev Properties was founded by Akbar Hassim. We have established ourselves not only as an independent, but also a Turnkey Developer – being able to buy Land, Finance the Real Estate Deals, Create, Control and Orchestrate the process of the Development from beginning to end.+

“Our approach to Property Development and Investment therein involves thorough financial and delivery risk analysis, thereafter followed by focused and efficient delivery.”

This approach is underpinned by many years of experience, and an impeccable entrepreneurial spirit.

Buy And Invest In The Latest Residential Developments

We have a number of Residential Developments currently underway, each at various stages. These Full-Title Free standing units, afford residents space and comfort within the security of cluster/ estate living. Perfectly located just a few km’s away from the hustle and bustle of Sandton’s Central Business District, and within close proximity to all major Malls & Shopping Centres, Schools, Hospitals, Gyms and places of worship.

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We afford buyers and investors an opportunity to buy or invest in Prim Residential Real Estate, that provide the perfect balance of Excellent Capital Growth and Steady Income Yields.

Our Offering For Investors & Buyers

  • Full-Title Free-Hold Residential Cluster Developments
  • Prime locations, close to all essential amenities
  • Perfect balance of high Capital Appreciation and Steady Income Yields
  • Investor buyers can purchase with Rental Guarantees

*Limited number of investor units available

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Smoothie Franchise Opportunity: Puré Frooty Is A One-Of-A-Kind Smoothie Franchise Business

Looking for the next greatest franchise opportunity? Puré Frooty Smoothie is a highly perfected Australian business model launching in the South African market that doesn’t require extensive shop fitting or a large workforce.

Pure Frooty Smoothie

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Vital Stats

Puré Frooty Smoothie is a unique business model to the South African market. A delicious, fruit filled smoothie will be created at the touch of a few buttons.

An Innovative Franchising Concept

This innovation in the healthy smoothie industry is ground breaking for South Africa. The machine is manufactured in Australia by a highly skilled team. It took six years to perfect this business model for the consumer market.

The vision of Puré Frooty Smoothie is to offer convenient on-the-go smoothies for anyone. The experience and quality will always be of the highest standard. We aim to be a staple convenience in malls, schools, office parks and hospitals. This is a platform that will allow for self-growth for passionate entrepreneurs.

Our mission is to create a unique customer experience. We want to satisfy the nutritional needs of customers by providing quality smoothies. Puré Frooty Smoothie will be packed with all the goodness a smoothie should offer.

Related: Why Your Franchise Should Adopt A Shared Value Business Model

The four values we pride ourselves in are:

  1. Convenience
  2. Consistency
  3. Quality
  4. Customer Satisfaction.

Why Consider This Franchising Opportunity

healthy-smoothie-franchise

Extensive research into the business model and market

Puré Frooty Smoothie was an idea, researched widely, by people looking to simplify the business process for the consumer and business owner. There was a gap in the market for simplified customer service and a demand for a quicker turnaround time.

Simplified process for setting up a business

For an entrepreneur it can be very overwhelming to start or buy a new or existing business. There are so many crucial decisions that need to be made from the beginning and new concepts to adapt to.

Puré Frooty Smoothie simplifies that drastically:

  • Free-standing machines: The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance.
  • No shop-fitting required: There is no need for shop fittings or a large work force. All that is required is an inside space for the machine with a power supply.
  • Minimal human resources needed: In terms of a work force, you could either do it yourself or have one person to assist you. There is also a part time involvement where refill station teams can refill and maintain the machine.
  • Cashless business: The business is completely cashless so there are no worries of a note jam, full cash canister or insufficient denomination rand values. More importantly the machines would do a higher turnover than an ordinary vending machine so safety of no cash is important.
  • Easy tracking of stock and performance: A cloud-based system is linked to the point of sale which allows you to monitor your performance and stock from the back-office platform at any given time.
  • Efficient handling of maintenance: With a live point of sale system, the business is linked to a software which monitors the operations of the machine. Should anything malfunction an immediate notification will be sent with a diagnostics report.
  • Human error is eliminated: Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.

Related: SA Fast Food Franchising On The Rise

Why Will Customers Love It

Puré Frooty Smoothie offers a vending machine that can produce a delicious smoothie in forty seconds. An informative touch screen ordering panel which displays all the nutritional information of the smoothie ordered and has the current news and weather.

No time wasted for the consumer. In fact, it’s a learning session disguised as a waiting period. The machine has two wash cycles after every smoothie is made to be freshly prepared for the next smoothie, business hygiene is important.

Consumers live in the fast lane. We are looking for something quick and most times we would like to be healthier. With the hustle and bustle of today’s life every little bit helps. Puré Frooty Smoothie fills that gap in the market.

Interested in Becoming A Franchisee?

Visit our Franchise Info Page for everything you need to know about how to become information a Puré Frooty Smoothie Franchisee owner.

You can also call or write to us:

Phone / 012-942 6360
Email / info@purefrooty.co.za 

Want to know more about this franchise? Watch the video below for more.

 

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