Financial Services (FS) functions within the Business and Sector Development Services (B&SDS) of SMEDA. As the name implies, FS is responsible for all direct and indirect activities that fulfill the objective of providing SMEs with improved access to business development services.
Financial Services not only implements its initiatives to design and implement programs but also plays a supportive and advisory role to other departments of SMEDA.
1. Financial Analysis
Financial analysis is an important section of the comprehensive sector studies developed internally by SMEDA.
Financial Services is responsible for preparing this section; broad parameters include:
Performance: Historical performance of the sector in terms of its financial viability
Competitive Analysis: Various cost structures and value-addition processes practiced in the sector
Sourcing of Financing: Analyze financing modes available and best suited for the sector
2. Financial Modeling
To ascertain the financial feasibility of individual SME businesses as per the request of clients approaching SMEDA, Financial Services prepares extensive financial projections using comprehensive models. These financial models are “live “models providing flexibility to the user to evaluate the viability of a proposed strategy under numerous scenarios.
Financial Services works very closely with Financial Institutions (FIs) in designing financing schemes for SMEs. Moreover, the department designs programs and services, in line with SMEDA's objective, to support FIs by promoting their SME-friendly facilities to elevate the capacities of small and medium businesses.
4. Advisory Services
Carrying the core mandate of SME development, other institutions seek recommendations and guidance from SMEDA before developing SME facilitating schemes. In this regard, FS provides information related to the financial conditions of the industry; prepares reports backed by relevant historical statistical analysis, and provides necessary relevant data as needed.
SME Financing Products
Upon analyzing queries received at the SMEDA helpdesk facility and our interaction with sector stakeholders, it has been highlighted that SMEs require easy access to finance. Therefore, creating awareness of SME-specific products and services being offered by banks among SMEs is considered an important measure by us to enhance SMEs' access to finance.
Financial Services adopts the following mode of reliable information dissemination:
Financial Services collects and compiles information periodically from various banks about their products designed for SMEs. This information is then assimilated as per SME understanding and displayed on the SMEDA website in a user-friendly format as a searchable database and can be accessed through theSME Financing Products Database
Training, Seminars & SME Financing Helpdesk
To increase SME understanding on various ‘finance’ related issues, we conduct awareness seminars and trainings to disseminate information on SME financial services and products available, ways to bridge the gap between SMEs and banks, accounting and bookkeeping issues, etc. These seminars not only increase SMEDA outreach into the sector but also highlight problems faced by SMEs while approaching banks; which are later addressed by SMEDA and discussed on various forums.
SMEDA, in collaboration with banks periodically conducts a Helpdesk for SME Financing where bank representatives evaluate SME loan requests and SMEDA staff handholds eligible SMEs through loan processing and documentation processes.
SMEDA and PSX are in collaboration through a Memorandum of Understanding to facilitate Small and Medium Enterprises through capacity building and awareness creation to explore equity financing as a means to finance their businesses.