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SMEs: BOI appoints 122 business devt service providersBY ADEWALE SANYAOLU
Worried by the less than 10 per cent Small Medium Enterprises (SMEs) that have access to its total loan portfolio, the Bank of Industry (Bol) at the weekend, announced that it has appointed 122 Business Development Service Providers (BDSPs) to help SMEs across the country package bankable proposals.
Managing Director, Bol, Mr. Rasheed Olaoluwa, disclosed this at the signing of agreement between Bol and the 122 BDSPs in Lagos.
Olaoluwa explained that one of the main factors responsible for the current low level of financial support to SMEs was the fact that their business plans and loan requests are poorly packaged and non-bankable.
He regretted that the development remained worrisome to Bol, hence the need for an intervention move aimed at tackling the challenge to raise the bar for SMEs, in relation to access to loan facility.
‘‘In recognition of this challenge, as well as in fulfillment of Bol’s core mandate of providing long-term financial and business support services to large, medium and small projects, the bank has decided to engage the services of BDSPs,’’ he said.
The Bol boss said the selection process that led to the emergence of about 122 BDSPs was very rigorous, adding that 311 applications were received nationwide with a minimum score of 65 per cent set as the qualifying threshold for the evaluation of the proposals.
At the end of the evaluation process, he stated that 122 companies were shortlisted as BDSPs in three categories based on their capacity and their preferred areas of coverage as follows: National Coverage – 28; Zonal Coverage – 74 and State Coverage – 20.
He said the scope of services to be deployed by BDSPs include collaboration with Bol to identify credible SMEs that require finance, develop bankable plans and proposals for SMEs to facilitate their access to finance.
He explained further that the BDSPs would be guided by Bol’s Risk Acceptance Criteria (RAC), and will also ensure that a sound business model is developed and presented alongside collaboration with Bol to conduct periodic post-finance monitoring of the SMEs.
Others are providing post-finance services such as mentorship, handholding, financial advice and inculcation of best practices while supporting the SMEs to develop synergies and sustainable relationships with large enterprises, industrial buyers and suppliers along the value chain.
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