FNB helps small businesses succeed even in these uncertain times
FNB helps small businesses succeed even in these uncertain times
Consumers often wonder what criteria a bank use when making its decision to lend money. In this regard it is important to understand that commercial banks are highly regulated entities that have to safeguard their depositors’ funds and that they are expected to operate within strictly controlled risk parameters when lending out money.
Commercial banks consequently expect the potential borrower to be able to service the loan repayment out of existing cash flows produced by the business and, in addition, will normally expect some form of tangible security to be provided to reduce the bank’s potential loss if the borrower was to default.
Accordingly, the more secure the lending and the better the existing cash flows of the business, the better the chance that the commercial bank will favourably consider the loan application.
It is against this backdrop that Biznetwork, a unit
of FNB
Commercial, has organised a seminar under the theme of How to Beat the Bank: Funding a Business.
The event will be broadcast live to selected venues around the country and to Biznetwork members in
Biznetwork CEO Shaun Edmeston says the seminar aims to inform small business-owners on what the bank looks for in terms of documents as well as ways in which business-owners can structure their business plans to better the chances of receiving finance.
Keynote speakers at the main event that will be held at the Balalaika Hotel in Sandton include Vuyo Jack, co-founder of Empowerdex; FNB Commercial’s executive Mike Vacy-Lyle; fashion designed Bongiwe Walaza, and Allan Raiz, founder and CEO of Raizprop, the only privately-held unfunded but profitable business incubator on the African continent.
Edmeston says: “FNB supports the spirit and practices of entrepreneurship in
