Boost for entrepreneurs

FNB Namibia is proud to announce the establishment of a special fund which is aimed at upcoming SMEs who have bankable business ideas but lack the collateral or capital to set up the business.

Sam Ikela, head of the growth and SME division at FNB Namibia, says besides a lack of collateral and equity, clear business planning and the development opportunity for business management skills are often drawbacks too.

“We would like to extend a helping hand by encouraging budding entrepreneurs to believe in their business ideas and to talk to us about an unsecured SME loan.

“The scheme is specifically designed for clients lacking collateral. However, should a client be in possession of alternative collateral but not sufficient to cover the full exposure, they too can qualify under the scheme provided all other options of own contribution have been explored,” says Ikela.

“As with any loan there are always terms and conditions and in this case, we advise that mortality cover and short term insurance are compulsory. All loans approved must be opened with Special Loan Purpose and Loan Type: SME and normal credit initiation and approval process channels must be followed. “FNB Namibia's close association with SME Compete also opens the door for skills development for SMEs through sponsored training from the bank, should all criteria be met.

“The objective of SME Special Fund is to support, develop and grow the SME sector by providing the necessary financial and technical assistance on a sustainable basis.

“Enabling the SME sector to contribute to economic development through the promotion of entrepreneurship and the creation of employment, SMEs can be the nation's engine of growth.

We look forward to assisting Namibians with strong, innovative business ideas. We understand the needs and preferences of SMEs and have developed tailored value propositions to overcome the historical challenges of high credit risk and cost to serve.

“The bank's strategic intent is to, transact, invest, lend and insure and is not only focused on SME lending but also prioritises non-lending products to provide total customer value,” Ikela says.

FNB chief marketing officer Tracy Eagles adds: “Across the world the rise of the entrepreneur is on everyone's lips and the need for proper SME support has never been clearer.

“It's time to stop talking and start doing, so for the first time a bank is saying, what if the business idea and the ability to repay are also considered as contributions to collateral? What if someone is actually listening to those who are set to change the way we do business?”

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