An Overview
of SME Banking
Financial Solutions
Bank Alfalah: An Overview
Since its inception in 1997, Bank Alfalah has grown rapidly
to become Pakistan’s 5th largest private bank; the largest
issuer and acquirer of credit cards; and one of the largest
Islamic Banking businesses in the country.
With a network of over 650 branches spanning more than
200 cities with presence in Afghanistan, Bangladesh and
Bahrain in addition to a representative office in the UAE; the
bank serves more than 1 million corporate, retail, small
business, agricultural, Islamic banking customers.
An Overview of SME Banking
SME Products
A topical view of various Financial Solutions
M POS Based
Solutions
Payment and
Collection
Solutions
Payroll
Facilities
SMEs
Cash
Management
Solutions
Non-Financial
Advisory
Digital Banking
Solutions
Trade
Solutions
Financing
Solutions
SME Product Menu
Running Finance , LG, LC and other import/export related facilities against
mortgage of Res/Commercial Property
Financing up to 20M
Term Finance for acquisition of commercial/industrial property.
Financing up to 30M
Maximum tenure up to 15 years.
Running Finance, LG, LC and other import/export related facilities for
Consumers, SMEs & Corporate to help them meet their personal, family &
business needs. The loan can be availed against Bank Deposits at BAFL or
any other A Rated bank, National Savings Certificates or prize bonds.
RF facility up to 15 million to meet working Capital needs of SMEs using
our POS machines at their business premises for the last one year.
Presentation Title, DD Name of the Month YYYY set in Tahoma 8pt
Alfalah Karobar Finance
• Running Finance, LC,LG and other import and
export related facilities to SME customers for
expanding their business volumes
• Finance amount based on the sales of the
business. More the sales, More you get
• Financing against mortgage of
Residential/commercial property
• Amount range 0.5-20 Million
Loan Amount
The turnover (Aggregate of all bank accounts)
should be at least 3 times of limit assigned
An Overview of SME Banking
Salient Features:
•
•
•
•
•
No Hypothecation of current assets so no
additional expense (insurance)
No need to adjust your full facility.
Up to 25% adjustment on semiannual
basis.
Quarterly markup servicing
Processing charges as per SOC
Eligibility:
• 3 Years Business proof
• Value of collateral
• 3 times turnover in bank account
Alfalah Milkiyat Finance
•
•
A Term Loan Facility for SMEs
Repayable in Monthly Installation Post Dated Cheques
Amount
Amount
Grace
Range
Range
Period
(min)
(max)
AMF 1: Acquisition Of
Rented
Commercial/Industrial
Property By Present
Tenant
AMF 2: Construction On
Owned And Possessed
Commercial/Industrial
Premises/Plot (s).
AMF 3: Purchase of
Constructed
Commercial/Industrial
Property (ies).
AMF 4: Renovation of
Owned & Possessed
Commercial/Industrial
Property (ies).
Tenure
(min)
Tenure
(max)
3 months
(max)
Rs 0.5 mln
Rs 2.0 mln
Rs 2.0 mln
Rs 30.0 mln
2 yrs
2 yrs
12 yrs
15 yrs
9 months
(max)
Rs 0.5 mln
Rs 2.0 mln
Rs 2.0 mln
Rs 30.0 mln
2 yrs
2 yrs
12 yrs
15 yrs
6 months
(max)
Rs 0.5 mln
Rs 2.0 mln
Rs 2.0 mln
Rs 30.0 mln
2 yrs
2 yrs
12 yrs
15 yrs
Rs 3.5 mln
2 yrs
4 yrs
NIL
Rs 0.5 mln
Alfalah Milkiyat Finance (contd.)
Pricing: 1 Year KIBOR + 4%p.a
Purpose
Min. Equity Participation
AMF 1 & AMF 3
30%
AMF 2 & AMF 4
N/A
Eligibility Criteria:
• Pakistani Residents.
• Age of Individual/Proprietor not to exceed 65yrs upon maturity.
• Age of The Business Shall Not Be Less Than 3 years.
Alfalah Milkiyat Finance (contd.)
AMF 1
Loan
Entitlement
(lowest of the
factors)
AMF 2
On the basis of
On the basis of 50%
50% Debt Burden Debt Burden in Cash
in Cash Flow
Flow Projections
Projections
OR
OR
70% of (BOQ + plot
70% of assessed value)
market value of
property
OR
(Which ever is
less)
2.33 times of equity
i.e. plot value
OR
Amount of BOQ
(Which ever is less)
AMF 3
AMF 4
On the basis of
50% Debt
Burden in Cash
Flow
Projections
On the basis of 50%
Debt Burden in Cash
Flow Projections
OR
25% of assessed
market value of
property
OR
70% of
assessed
market value of OR
property
(Which ever is Rs. 3.5M
less)
(Which ever is less)
Note: Age of the Property
should not exceed 20 years at
the time of maturity of loan
Alfalah Quick Finance
•
Nature of facility : Running Finance, LG, LC and other import/export related facilities for Consumers,
SMEs & Corporate to help them meet their personal, family & business needs.
•
Financing against DSCs, RICs, SSCs, Prize Bonds, FCY Deposits, BAL Deposits & Other Bank Deposits
•
Limit= 0.05M to 300 M
•
Margin = 10%( 15% for financing against FCY Deposit)
•
Limit up to 85% - 90% of the encashment value of the security.
•
Third party allowed.
•
Quick processing.
•
No clean up requirement.
•
Financing to overseas Pakistani allowed.
Alfalah Merchant Line
RF facility up to 15 million to meet working Capital needs of SMEs using POS
machines at their business premises for the last one year.
Security
• Personal Guarantee(s) of Proprietor, Partners and Directors.
• Post Dated Cheque covering full limit amount plus markup for three
months.
• Hypothecation of Receivable (For financing above 5 million)
Pricing & Limits
• 3 months KIBOR + 8%
• Subject to the maximum limit of 15 million, the amount of eligible finance
under AML shall be based on customer’s annual sales through our POS
machines.
Alfalah SME Toolkit
Bank Alfalah – SME Toolkit
Background
 2001 – IFC identified knowledge/skills gap that hindered SMEs in
developing countries to grow and improve performance.
 IFC created SME Toolkit to help bridge that gap by providing high quality
business management advice and practical tools to small businesses free of
charge.
 2006 – IFC partnered with IBM to build the core technology platform.
Fact: Today SMEs account for over 80% of net job creation in developing
countries. A vibrant SME sector is the key to inclusive economic growth.
Bank Alfalah aims to create opportunities for people and empowers them to
improve their life standards by giving them the necessary tools to advance.
Product Overview
 Web and mobile platform
 Offers the latest information and communication technologies to
help small businesses in emerging markets to:
 Learn and implement sustainable business management
practices
 Increase their productivity, efficiency and capacity
 Gain access to finance and new markets.
To date, SME Toolkit has been launched in 18 languages in 43 markets and is
growing around the world. In many of these markets, there are no comparable
online support resources for small businesses in the local language. Since the
program’s inception in 2001, SME Toolkit websites have been visited by nearly
20 million people across the developing world
SME Toolkit – Global Impact
+ 5.5m
visitors pa
0.48 %
18
internet penetration
(client dev countries)
major global
partners
17
languages
+ 200
countries access
37
sites
28%
repeat users
Brand strength:
78%
repeat users report improved
performance
protected in
markets
15
29
96,038
registered
users
+ 5,000
pieces of
content
local
partners
SME Toolkit – Addressing All Key Management Areas
SME Toolkit – Basic Site Architecture
www.pakistan.smetoolkit.org
SME Toolkit – Basic Site Architecture
SME Toolkit – Focus on Facilitating Women Entrepreneurship
• Developing women specific content including training material and case studies
• Reaching out to women entrepreneurial bodies like Women Chamber of Commerce &
WECREATE workshop for quality advisory sessions
• Assisting women entrepreneurs by creating awareness around NGOs and lending solution
providers through joint seminars and workshops
And all in no cost!
Register now!
 Get access to premium content.
 Get notified as soon as new business tools are available.
 Promote your business with a free listing and Web page in our
global directory.
 Share your comments and meet new business partners.
www.pakistan.smetoolkit.org
Conclusion
Proven platform for bringing
information and learning tools in reach
of entrepreneurs and SMEs…
to support their growth and success!
Send us your feedback at
[email protected]