Professional Documents
Culture Documents
Table of Contents
VISION, MISSION AND VALUES ................................................................................................................... 4
1.
1.1.
VISION .................................................................................................................................................. 4
1.2.
MISSION ............................................................................................................................................... 4
1.3.
VALUES ................................................................................................................................................ 4
2.
3.
4.
4.1.
5.
5.1.
5.2.
6.
BACKGROUND .......................................................................................................................................19
7.2.
7.3.
7.3.1.
8.
9.
1|Page
RISKS .....................................................................................................................................................28
10.
10.1.
10.1.1.
10.1.2.
10.1.3.
10.1.4.
10.2.
10.2.1.
10.2.2.
10.2.3.
10.2.4.
10.3.
10.3.1.
10.3.2.
10.3.3.
10.3.4.
10.3.5.
10.4.
10.4.1.
10.4.2.
10.4.3.
10.4.4.
11.
11.1.
11.1.1
Character........................................................................................................................................36
11.1.2
11.1.3
11.1.4
Purpose ..........................................................................................................................................37
11.1.5
11.1.6
Repayment .....................................................................................................................................37
11.1.7
11.1.8
12.
2|Page
13.
13.1.
13.2.
13.3.
13.4.
13.5.
SHAREHOLDERS ...............................................................................................................................43
13.6.
13.7.
13.8.
13.9.
ZAMFI .................................................................................................................................................43
14.
APPENDIX ..............................................................................................................................................44
3|Page
1.3. VALUES
Customer focus
Respect
Honesty
Integrity
Professionalism
2. PHYSICAL ADDRESS
The company will start with one branch located in Harare. The address will be: -
4|Page
3. EXECUTIVE SUMMARY
It is the background of lack of liquidity in the economy and difficulty in accessing finance for working
capital and business expansion that Ratisson Finance (Pvt) Ltd is being birthed. The economic
meltdown experienced in recent years has left a large number of people unemployed. Most of these
have turned to self-employment by embarking on self-help projects. The hyperinflation and subsequent
dollarization wiped out most savings and monetary assets thus creating a huge demand for credit from
entrepreneurs who wish to recapitalize their businesses. The banking sector has always looked at the
lower level of the financial services market as being largely un-bankable and indeed that market
segment has remained largely unbanked.
All these factors have together created a substantially high and unsatisfied appetite for credit to finance
new projects, re-tooling and for working capital purposes. It is with response to this situation that
Ratisson Finance has been incorporated to tap into the market and provide to financial services to a
sector with potential to generate income, create wealth and assist the government realize one of its
goals to eradicate hunger and poverty.
Ratisson Finance intends to solve the abovementioned challenges by bringing in innovative and
customer friendly financing products. The company product line will include working capital loans,
micro-housing finance products, asset backed finance, consumer and salary based loans, order
financing, invoice discounting and many more. The company realizes that lending to this sector of the
economy presents several challenges and risks. Lending models such as group model and cautious
appraisal techniques such as CAMPARI will be employed to ensure a healthy portfolio of loans is
maintained. Various risks such as interest rate risk, credit risk, reputation and regulatory risk, business
risk, liquidity risk and strategic risk have been identified as having a likely effect on the business if not
managed carefully. Risk mitigation strategies have been identified to deal with these risks. These
include the setting up of an effective risk management framework. Board committees will be set up to
deal with the various inherent risks such as Credit Committee, and Risk and Audit Committee.
Financial projections and proposed organizational structure and presented at the end of this document
as annexures.
5|Page
The constrained fiscal space has forced the government to adopt a contractionary
fiscal policy stance, while the use of the multi-currency regime limits the use of
monetary policy instruments.
Real GDP growth is estimated to have decelerated to 3.7% in 2013 from an estimated
4.4% in 2012. This reflects a continued slowdown in the economy as a result of limited
sources of capital, policy uncertainty and the high cost of doing business. Real GDP
growth is projected to marginally improve to 3.2% in 2015. In 2014, inflation averaged
about -1.4% and is projected to remain in the negative in 2015 (currently at -2.7%).
Inflation developments will continue to be influenced by the USD/ZAR exchange rate,
international oil prices and local utility charges. Persistent liquidity shortages combined
with low effective demand and a weak South African rand will dampen inflationary
pressures in the economy. The country is currently experiencing a decline in money
supply. At the same time, the South African rand depreciated by about 20% in 2014
and continues on a downward trend in 2015.
The poor performance of domestic revenue inflows and the rise in recurrent
expenditures will continue to constrain fiscal space, while the continued use of the
6|Page
In the year 2010 the government of Zimbabwe enacted the Indigenization and Economic
Empowerment Act (Chapter 14:33), which among other things promoted the growth indigenous
entrepreneurs/ small to medium enterprises reserving certain sectors of the economy to indigenous
people, especially the retail sector which is mainly dominated by the informal sector. According to
the FinScope 2012 survey on Small to Medium Enterprises, there are over 2 million individual
entrepreneurs and 800,000 SMEs with employees and these are estimated to be employing over
2.9 million people. The discussion with the informal sector players also revealed a lot about the
manner in which they are organized as well as their potential. The traders in Mbare indicated that
collectively that can realize about $1500 per day in revenue. Many of them however do not have
bank accounts, as the procedure is very cumbersome with banks requiring so many documents
such as proof of residence and letters of employer which most of whom are tenants/lodgers
ordinarily do not have.
The players are also failing to access loans from banks since banks want a guarantor (with pay
slips) which automatically excludes self-employed traders, small-scale manufactures and service
providers some of whom do not earn regular monthly income. Most of the traders hardly keep any
records in a format accepted by banks as proof on the capacity/potential and profitability of the
business. Many of the informal sector players ,who rely on self-financing from personal savings,
close funding/working capital gaps by borrowing from expensive sources of money such as
microfinance institutions and other informal sources that factor in higher risk premiums on the
interest rate. Examples include dealers of apples who get informal credit at Road Port bus station
at costly terms payable on a daily basis. Some microfinance institutions have also realized the
potential from informal sector players and lend amounts of between $100 and $500, which are
repayable on a daily basis once the loan matures. Despite these unfavourable and costly terms,
the players have been able to generally repay the loans. The only challenge is the lack of
information about the operation of the players, which imbeds a lot of risk.
The following are some of the constraints that have been identified to hinder informal sector development.
riskiness of lending because of poor management and high rate of business failure;
low productivity;
8|Page
under capitalization;
shortage of skills;
Lack of collateral.
Another constraint which tends to block the flow of credit to the informal sector is lack of information. Small
business owners most often possess more information about the potential of their own businesses but in
some situations it can be difficult for business owners to articulate and give detailed information about the
business as the financiers want. Additionally, some small business managers tend to be restrictive when it
comes to providing external financiers with detailed information about the core of the business, based on
the suspicion that information about their business may leak through to competitors
9|Page
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Family problems,
2%
Interest rates too
high, 15%
Maturity period
too short, 5%
Without
difficulty, 42%
Bad business
period, 36%
4.2.5 Reasons for failing to access bank loans by the informal sector
Figure 2
Insufficient
Collateral, 31%
Enterprise deemed
not viable, 21%
Incomplete
documents, 31%
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4.2.6 Reasons for not applying for loans by the informal sector
Figure 3
Loan terms not
favourable , 13.53%
Do not have
knowledge of banking
requirements and
products, 27.98%
Family, 28%
Microfinance, 31%
Banks, 23%
banking sector is not allowed by law to deal with clients deemed to be involved in criminal
activities.
However, the informal sector is a heterogeneous group with diverse players and different
levels of development and sophistication of enterprises. The company in particular need a
thorough understanding of the nature and dynamics of the informal sector in terms of
product and service offering; funding requirements; risk profiles; level of profitability;
accounting practices; varied compliance levels with local authorities by-laws as well as the
size of enterprises. In this regard the funding challenges faced by the company in the
informal sector also vary. Thus any strategy intervene to support the players in this sector
need take note of this heterogeneity to avoid blanket statements that paint the informal
sector with one brush. In depth knowledge may assist the company in devising funding
strategies and intervention measures that adequately respond to the needs of the sector.
4.2.9 Reasons for not registering businesses by the informal sector
Figure
Too many
requirements to
complete registration,
15%
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AGRI-BUSINESS
951.30
MANUFACTURING
6,542.16
RETAIL
1,485.71
SERVICES
2,939.66
TRANSPORT
4,750.00
Manufacturing,
2,345.80 , 29%
Construction, 1,325.70
, 16%
Agri-business,
765.80 , 9%
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Transport, 944.00
, 12%
5. COMPETITOR ANALYSIS
5.1. MICROFINANCE INSTITUTIONS IN ZIMBABWE
There are currently about 147 registered microfinance institutions in Zimbabwe. Competition is very
stiff among the top 6 microfinance institutions. These are MicroKing, Untu Finance, FMC Finance,
Yambukai Finance, Zimnat Finance and Pundutso. The rest of the companies do not compete
directly as they focus on their niche markets. Whilst the credit market is awash with credit seekers,
it is the credit worthy clients that microfinance companies compete for. In this respect, competition
is rife and intense and many of the institutions try to structure attractive packages to create a good
loan portfolio.
There is therefore more than enough space for Ratisson Finance to come on board, cover this gap,
operate profitably and help the small entrepreneurs make a difference in the economy by providing
them with access to capital. It is equally important to be cognitive of the fact that this is the riskiest
sector of the business economy. Strict risk management principles are imperative for success.
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Without compromising security and controls, Ratisson Finance will develop customer interface
procedures that are easily understood and related to the type of customers that we seek to
serve.
Staff will be trained and those with a genuine aptitude for dealing with our type of customers
will be deployed to customer contact duties.
Order finance
Bridging finance
Micro-housing loans
Home improvement loans
Debt factoring
Financial advisory
White Money/Pawning
Real Estate Based Finance (Sell and Buy-Back product and the Invest and Earn product)
awaiting maturity. Ratisson Finance would bridge the gap by between the present need for
funding and the maturity date of the investment against and undertaking by the investment
house to pay proceeds direct to Ratisson Finance.
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7.1. BACKGROUND
Ratisson Finance is a microfinance company established with a view to easing the liquidity
challenges that are faced by Zimbabwean businessmen and prospective business owners. Many
entrepreneurs who existed during the pre-dollarization era had their working capital and savings
wiped away by inflation. Quite a number of individuals who foresaw this unfortunate event hedged
their risks by investing into real estate, automobiles and electronic gadgets. Many of the
businesses turned informal as a survival strategy during the Zimbabwe dollar era. Many shunned
banks and resorted to real assets.
Post dollarization many entrepreneurs are stuck with real assets with no ready liquidity for working
capital and business startup. The birth of Ratisson Finance (Pvt) Ltd and the introduction of its
housing product is a direct response to convert the real assets of the many entrepreneurs into the
much needed liquidity. This is a great step in unlocking value for all progressive Zimbabwean
entrepreneurs. The solution comes in the form of structured finance packages.
A chicken egg phenomenon has also be dogged the entrepreneur. Whilst banks require collateral
for loans, they also demand that the same entrepreneur put at least 50% of own capital into the
business, which he does not have. What he has is an asset and entrepreneurial prowess, and no
cash. This criterion in lending has left many potential business people locked out of the playing
field. We believe that we can turn the value locked up in real assets into liquidity and contribute to
the development of the nation.
7.2. OBJECTIVES OF THE BUSINESS PLAN
The focal purpose of this manuscript is to provide a strategic guideline to the mechanisms and
architecture of the products intended to be introduced by Ratisson Finance (Pvt) Ltd to the market
of Zimbabwe especially its housing product. Whilst these products are already in use worldwide
and even neighboring countries such as Malawi, and South Africa this business plan seeks to
elucidate how the product will be introduced in the contemporary state of economy of Zimbabwe.
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The plan intends to demonstrate the profitability and the viability of the business model. In
addition, the business plan also seeks to highlight the major challenges and risks likely to be
faced by Ratisson Finance (Pvt) Ltd. It also articulates a lucid panacea to deal with such
challenges and inherent risks.
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Commercial stands
Warehouses
Government Treasury Bills
Zero Coupon Bonds
Corporate bonds
Listed Equities
Private equities
7.3.7. STEPS IN LIQUIDATING AN ASSET USING REPO
i. Property holder is in need of finance. He has a property worth $200,000 for instance.
He does not wish to sell the property permanently, but instead want to raise finance for
his business using the property as collateral. The property holder determines that his
business venture is in need of say $40,000.00. Property holder approaches Ratisson
Finance (Pvt) Ltd.
ii. Ratisson Finance (Pvt) Ltd evaluates the property holder using the basic CANONS of
lending. The property holder is given credit rating. The credit rating determines the
level of finance and pricing of the facility. Property holder is either approved or
disapproved. If client is approved, proceed to step next step.
iii. Ratisson Finance (Pvt) Ltd will engage its property Valuer to ascertain the price of the
asset. The asset valuation costs are borne by the client and the client should agree to
these charges before Ratisson Finance (Pvt) Ltd engages the Valuer.
iv. Consequently, Ratisson Finance (Pvt) Ltd will engage its lawyers to carry out due
diligence on the asset with the Deeds Registry Office if it is real estate and if
successful proceed to next step.
v. A REPO (Repurchase agreement) is signed between Ratisson Finance (Pvt) Ltd and
the Property Owner specifying the terms and conditions including selling price repurchase price and tenure.
vi. Simultaneously, title deeds are received from the Property Holder and bonds are
registered against the property with the Deeds Registry Office.
vii. Property Owner is paid the REPO selling price.
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viii. On maturity, the Property holder pays Ratisson Finance (Pvt) Ltd the Re-Purchase
price.
ix. In the event of default, Ratisson Finance (Pvt) Ltd will sell the property to recover the
Re-Purchase price or any outstanding balance, the remainder of which will be paid out
to the Property Owner.
7.3.8. DEALING WITH FINANCIERS
Ratisson Finance (Pvt) Ltd shall maintain a pool of collateralized assets. The assets shall be
in the form of REPOs backed by real estate properties and other qualifying assets. The
collection of the collateralized assets shall be called the CRAB = Collateralized REPO Asset
Base. Ratisson Finance (Pvt) Ltd will raise finance by securing lines of credit and bonds
secured by the CRAB.
Fund level = A% of CRAB
A% is the security to loan ratio that Ratisson Finance (Pvt) Ltd shall determine from time to
time taking into account the following:
Quality of assets in the CRAB
Tenure of securities used to raise funding
General economic fundamentals driving interest, inflation etc.
The financials risks inherent in the transactions
The Board of Ratisson Finance (Pvt) Ltd shall set a ceiling to A% and this ratio must be
reviewed periodically.
raises loans worth, say 50% of the value of the collateral base. This provides a cushion against
property withdrawals and breaches. The type of financing raised will be preferred as lines of
credit to allow for flexibility of drawdowns and early repayments. The income earned from onlending the funds raised is expected to offset or cover the monthly payments to property owners
and remain with a good margin.
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8. MARKETING STRATEGY
Against the background of high demand, high risk and under supply of financial services in the target
market segment, the major issues have to do with access and capacity.
Along with these considerations must be prudence in risk management and faithful adherence to the
strategic objectives of Ratisson Finance as already outlined above. The marketing strategy will
therefore include the following:
8.1. USE OF MEDIA
To raise awareness of Ratisson Finances existence and product and service offerings.
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In general, long term relationships based on a clear understanding of each customers needs and
financing requirements will inform our marketing thrust and activities in line with our philosophy of
customer focus.
The following sectors have been identified and will form the basis of an organized marketing effort:
Consumers/individuals
Manufacturing
Agriculture
Trading
Services
Where organized groups such as womens clubs can be identified or organized this will help to
organize training and may assist by facilitating group lending and cross guarantees among
members e.g. women at the same market stall.
With respect to consumers the initial approach will be to the employer who agrees to a stop order
system. Thereafter the offer is made to employees.
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9. FINANCIAL STRATEGY
Ratisson Finances financial strategy will be guided by the objective of maximizing the return with
minimum risk on its services and earning assets. To this end the following guidelines will apply.
i. The cost of capital from whatever source, including borrowed capital, will be kept as low as possible
and an Assets and Liabilities Committee will continuously monitor this against specific cost of funds
target.
ii. For the cost of capital to remain low the $470,000 initial investment required to kick-start the business
should initially be 75% equity financing and 25% debt financing. Keeping the debt financing low in the
initial operating period gives the microfinance unit room to raise more debt funding from investors.
iii. Going into the future, the board of Ratisson Finance hopes to keep the debt levels very low at no
more than 80% of equity capital
iv. The interest rate charged on lending, while being competitive, must reflect the risk and cost of funds
to ensure adequate positive interest return.
v. Operational costs, including training and other extension activities, must be covered by non-interest
income to the greatest extent possible.
vi. Earnings must be retained to build capital and boost capacity to build capital and boost capacity as
well as reducing reliance on borrowed capital, thereby improving the return on shareholders funds
over time.
vii. As much of the company capital resources as possible should be deployed to earning assets and as
such, investment in other non-earning assets, especially brick and mortar and motor vehicles will be
kept to an absolute minimum relative to total stock of capital.
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10. RISKS
Risk taking is an inherent element and integral part of Ratisson Finances business in general and,
indeed, profits are in part the reward for successful risk taking in the business. On the other hand,
excessive and poorly managed risk can lead to losses and thus endanger the safety and soundness of
Ratisson Finance as an institution and safety of its financiers funds. Consequently, Ratisson Finance
may fail to meet its social and financial objectives. This implies that proactive risk management is
essential to the long term sustainability of Ratisson Finance as an institution.
10.1. FINANCIAL RISKS
10.1.1. Credit Risk
Credit risk is the financial exposure resulting from Ratisson Finances dependence on another
party (counterparty) to perform an obligation as agreed. It is the risk to earnings or capital due to
borrowers late and non-repayment of loan obligation (REPOs). Credit risk encompasses both
the loss of income resulting from Ratisson Finances inability to collect an anticipated interest
earnings as well as the loss of principal resulting from loan/REPO defaults. Ratisson Finance
need to manage the credit risk inherent in the entire portfolio as well as the risk in individual
credits or transactions. Additionally, Ratisson Finance should be aware that credit risk does not
exist in isolation from other risks, but is closely intertwined with those risks.
10.1.2. Interest Rate Risk
Interest rate risk is the exposure of Ratisson Finances financial condition to adverse
movements in interest rates. Accepting this risk is a normal part of Ratisson Finances business
and can be an important source of profitability and shareholder value. However, excessive
interest rate risk can pose a significant threat to Ratisson Finances earnings and capital base.
Changes in interest rates affect Ratisson Finances earnings by changing their net interest
income and the level of other interest-sensitive income and operating expenses. Changes in
interest rates also affect the underlying value of Ratisson Finances assets, liabilities and offbalance sheet instruments because the present value of future cash flows (and in some cases,
the cash flows themselves) change when interest rates change. Ratisson Finance, therefore,
needs to have an effective risk management process that maintains interest rate risk within
prudent levels based on proper identification of the sources and effects of interest risk.
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at
loss
due
to
an
adverse
movement
in
exchange
rates.
produce or analyze transactions in an accurate, timely and secure manner. Operational risk
therefore is imbedded in all of the Ratisson Finances operations, including those supporting the
management of other risks.
The most important types of operational risk could also involve breakdowns in internal
systems and controls and corporate governance. Such breakdowns can often lead to
financial losses through error, fraud or inefficiency. Other aspects of operational risk
include major failure of information technology systems or events such as natural and
other disasters. As Ratisson Finance will be more reliant on technology to support various
aspects of its operations, the potential failure of a technology based system is of concern
in the context of the management of operational risk.
Operational risk can also give rise to reputational and legal risks as the types of failures
outlined above can result in damage to Ratisson Finance reputation and/or legal action by
regulators or customers.
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RISK MITIGATION
10.3.1. Managing Credit Risk
Effective approaches to managing credit risk include:
i. Active oversight by board and senior management, well designed borrower screening,
careful loan structuring, close monitoring clear collection procedures etc. To avoid rapid
spread and potential of significant loss, delinquency should be understood and addressed
promptly.
ii. Good portfolio reporting that accurately reflects the status and monthly trends in
delinquency, including a portfolio at risk aging schedule and separate reports by product,
sector, loan officer, branch etc.
iii. Following up concentration of credit
10.3.2. Managing Interest Rate Risk
Accurate and timely measurement of interest rate risk is necessary for proper interest rate risk
management and control. In general, depending on the complexity and range of its activities,
Ratisson Finance should have interest rate risk measurement systems that assess the effects of
rate changes on both earnings and economic value. These systems should provide meaningful
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measures of the Ratisson Finances current levels of interest rate risk exposure and should be
capable of identifying any excessive exposures that might arise.
A number of techniques are available for measuring the interest rate exposure of both earning
and economic value. Their complexity ranges from simple calculations to static simulations.
Gap Analysis
Duration
Simulation techniques
Stress testing should be designed to provide information on the kinds of conditions under which
Ratisson Finances strategies or positions would be most vulnerable and thus may be tailored to
the risk characteristics of the company. Possible stress scenarios might include abrupt changes
in the general level of interest rates, changes in the relationships among key market rates (i.e.,
basis risk), changes in the slope and the shape of the yield curve (i.e., yield curve risk), changes
in the volatility of market rates. In addition, stress scenarios should include conditions under
which key business assumptions and parameters break down.
An accurate, informative, and timely management information system is essential for managing
interest rate risk exposure, both to inform management and to support compliance with board
policy. Reporting of risk measures should be regular and should clearly compare current
exposure to policy limits. In addition, past forecasts or risk estimates should be compared with
actual results to identify any modeling shortcomings.
10.3.3. Managing Exchange Rate Risk
Where Ratisson Finance deals in foreign exchange or across currencies, no open positions
which put the business at risk will be permitted.
reason, the analysis of liquidity requires the management of Ratisson Finance not only to
measure its own liquidity position on an ongoing basis, but also to examine how funding
requirements are likely to evolve under various scenarios, including adverse conditions.
Ratisson Finance should review frequently the assumptions utilized in managing liquidity to
determine that they continue to be valid. Since Ratisson Finances future liquidity position will be
affected by factors that cannot always be forecasted with precision, assumptions need to be
reviewed frequently to determine their continuing validity. These assumptions should be made
under the different categories of assets, liabilities and off-balance sheet activities.
foundation for a strong reputation. Timely and accurate financial reports, informative
newsletters, and excellent customer service are important tools for reinforcing a Ratisson
Finance credibility and obtaining the trust of its stakeholders. Reputational risk is managed
through strong corporate governance. Setting a tone of strong corporate governance starts at
the top; an institution's board of directors and senior management should actively support
reputational risk awareness by demanding accurate and timely management information.
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Consumer
40%
Agriculture
15%
Manufacturer
20%
These guidelines will be reviewed from time to time in line with developments in the economy and
the companys own capacity.
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margin
ability
purpose
CAMPARI
character
amount
repayment
insurance
11.1.1 Character
Ultimately we will lend money when there is a very good chance they will be repaid so
establishing whether the customer is trustworthy and their track record is an important
consideration. If there are any doubts over the customers character the lending proposition will
not proceed beyond this stage and will be declined. The loan officer will look at whether the
customer is making exaggerated claims that are too optimistic or adopt a more reasonable and
conservative approach. The repayment of any previous borrowing will be looked at and for new
customers, bank statements will be requested to assess the conduct of existing accounts.
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11.1.4 Purpose
The loans officer will wish to establish that the purpose is an acceptable risk and in the
customers best interests. In their optimism to press ahead customers can overlook potential
problems and the lender can bring a degree of realism to the proposition.
11.1.5 Amount / Capital
The loan officer will consider whether the amount being asked for is appropriate and he may
challenge any assumptions. The amount requested should be in proportion to the customers
own stake. A reasonable contribution from the borrower shows commitment to the company.
The borrower should also have a contingency reserve of funds in case the business takes
longer than expected to get off the ground.
11.1.6 Repayment
The repayment source of any lending needs to be established at the outset. Repayment will
usually come from trading profits and this is where your projections will be thoroughly tested by
the bank. Historic trading figures and up to date management accounts are essential for
existing businesses. New startup businesses will be projection led and will be open to
challenge from the loans officer.
look at any potential issues resulting in any gaps in the borrowers insurance provisions which
may impact of their ability to repayment the agreed finance.
It is unlikely that the actual trading performance will go exactly to what the borrower has
projected and therefore the company will regularly monitor and review progress. The earlier
problems are identified then the better chances are that the company can offer practical advice
to overcome them. An understanding of the borrowing requirements and credit risks associated
with the lending are essential requirements for the loans officer being able to agree the
lending.
Security should normally be perfected before lending out but, if exceptionally, it is considered
necessary to lend first and the amount exceeds the unsecured portion of the managers
discretionary limit, then prior authority from head office should be obtained.
Valuations should be kept under regular review to take account of changing conditions.
It should be normal to take ultimate shareholders guarantees for facilities to private companies.
The following are features of ideal security:
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Easy to realize
Easy to value
Reasonable margin
Tangible e.g.
Cash security
Intangible, e.g.
tangible security
Insurance
risks.
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STRENGTHS
WEAKNESSES
Customer service
New brand
Location of business
Teamwork
OPPORTUNITIES
Growing construction sector
Huge shortage of liquidity in the
market
Tapping into South African financial
markets
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THREATS
Regulatory
changes
and
bottlenecks
New players with financial muscle
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13.5. SHAREHOLDERS
A shareholder is an individual or institution (including a corporation) that legally owns a share of
Ratisson Finance. Shareholders are the owners of Ratisson Finance. Their motive is to see their
value grow in the business and realize their expected returns.
13.6. BANKS AND OTHER FINANCIERS
These are the lenders to Ratisson Finance. There are interested in ensuring that Ratisson Finance
is financially sound and able to service its debts. They also follow up on the various covenants to
ensure that Ratisson Finance is in compliance.
13.9. ZAMFI
Ratisson Finances investments are mainly to the microfinance sector. The Zimbabwe Association
of Microfinance Institutions (ZAMFI) is the membership-based umbrella body for microfinance
institutions in Zimbabwe. Most of its activities involve lobbying and advocating for a conducive
regulatory framework, and building the capacity of the sector. ZAMFI was instrumental in leading
the earlier research and promotion of ZMWF, and has provided logistical and administrative
support during the start-up phase. ZAMFI's Executive Director acts as one of the Trustees on the
ZMWF Board of Trustees. ZAMFI's role is leading the revamping of the regulatory environment by
turning the National Microfinance Policy into an Act of Parliament, and helping to introduce new
and needed initiatives like rural microfinance, housing microfinance and value chain management.
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14. APPENDIX
14.1. 3 YEAR STRATEGY
14.2. FINANCIAL PROJECTIONS
14.2.1. Balance Sheet
14.2.2. Income Statement
14.2.3. Cash Flow Statement
14.2.4. Assumptions
14.3. ORGANOGRAM
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ORGANOGRAM
EXECUTIVE CHAIRMAN
GENERAL MANAGER
SENIOR LOAN
OFFICER
ACCOUNTANT
ASSISTANT
ACCOUNTANT
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BACK OFFICE
CLERK
LOANS
OFFICER
MARKETING
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