FNB Enterprise Solutions - FNB Launches Enterprise Division for Entrepreneurs

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FNB Enterprise Solutions Media Release FNB Launches Enterprise Division for Entrepreneurs
FNB Enterprise Solutions to Offer Integrated Financing, Banking and Business Support Services for Small and Medium Enterprises Johannesburg, [Insert Date] For Immediate Release FNB today launched a new enterprise division for entrepreneurs, FNB Enterprise Solutions. The new division will provide integrated financing, banking, advisory and business support services for both existing and potential business owner/managers. Conceived and established in response to the recently-adopted Financial Services Sector Charter, it will provide specifically for the establishment, growth and empowerment of independent enterprise in South Africa. The success of independent enterprise is fundamental to future socio-economic success in our country, says FNB Enterprise Solutions Managing Director, Duncan Randall. It is to this sector that we need to look for sustainable growth, job creation and economic empowerment at individual level. The new division will provide financing and allied services for entrepreneurs that may not have ready access to capital, but who have a workable business plan, a viable market for their products or services, a business model with strong growth potential and who themselves have good management skills. Small and medium enterprises at all stages of development will be considered, including start-ups, expansions, management buy-out and management buy-ins. Buy-outs and buy ins, in particular, can be complex deals to assess and implement, says Randall, as they require that the financial institution handling the deal have specialist knowledge of the industry and the sector in which the existing company is operating. Well-managed due diligence and carefully-structured financing packages, which are specific to the businesss needs, are also essential. FNB Enterprise Solutions has enterprise specialists based in FNB regional offices in all of the countrys major metropolitan areas. They are accessible to entrepreneurs either directly or through any FNB or Wesbank

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branch nation-wide. Their knowledge and experience will enable entrepreneurs to assess the strengths and weaknesses of their business plans and to make the right decisions for their individual businesses. With regard to management buy-ins, specific emphasis will be given to transactions in which black South Africans purchase 25,1% or more of an existing business, in line with governments Black Economic Empowerment (BEE) Strategy. Management buy-ins are defined as existing businesses that are purchased, (either wholly or in part) by an individual or management team that has the intention of actively participating in the day-to-day running of the business. Also in line with the BEE strategy, a dedicated investment fund within the division will concentrate on the needs of new entrepreneurs aged between 18 and 35, especially those from historically-disadvantaged communities. The fund, which was established in association with governments Umsobomvu Youth Fund, provides investment funding for young entrepreneurs. This is supported by a technical assistance fund, which provides black-empowered businesses with concessionary access to business support services through the new divisions Enterprise Support Programme. Of course, entrepreneurs need and want a total solution for their businesses, no matter at what stage of development theyre in, says Randall, and this is uniquely what FNB Enterprise Solutions is able to offer. In addition to competitively-priced investment funding and the full range of banking services, the new division will offer clients access to accredited generalist and specialist small business consultants; an Enterprise Call Centre (which will provide advice on legal, tax, medical, business management and financial issues); preferential rates for bookkeeping and audit services and an Enterprise Toolbox of useful fact sheets, financial models and standard business forms. Our focus will be on empowering the core of the small and medium enterprise sector in every way, says Randall. Financing between R100,000 and R5 million will be offered, with larger transactions being considered on merit. This will be provided in a mix appropriate to each company and may include term loans, shareholder loans, asset-based finance, overdrafts and nominal amounts of preference or ordinary share capital, or any combination of these instruments. We feel we bring to the financial services market a much-needed fully-integrated business service for entrepreneurs, concludes Randall. We look forward to creating, growing and empowering a wide range of South Africas small and medium enterprises. ends.