How to finance your SME

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SMEs are the foot soldiers of any economy. In developing economies, they are even more important. Small businesses largely do not make use of large machinery but collectively provide employment to many people.

These ‘local’ enterprises represent 90% of businesses and account for more than 50% of employment worldwide (World Bank).

According to World Bank estimates, 600 million jobs will be needed globally to absorb the growing global workforce. This makes SME development a high-priority activity for governments around the world.

In Nigeria and many emerging markets, most formal jobs are created by SMEs. However, access to funding is a critical factor in the state of SMEs within an economy. Where there are no robust funding frameworks designed to particularly cater to SMEs, fewer SMEs survive their beginning years and even fewer become profitable and sustainable over time.

According to the World Bank, access to finance is a key constraint to SME growth and the second most cited obstacle facing SMEs in emerging markets and developing countries such as Nigeria.

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Solving the problem of SME financing at scale triggers effects on the economy that cannot be accurately quantified in terms of the monetary return value. But still, SMEs are less likely to obtain loans from banks than large firms.

Most small businesses rely on the personal funds of their founders and loans from family and friends to initially run their businesses. A lack of financing for SMEs has abruptly ended businesses or systematically driven large percentages of these SMEs out of business over time.

Read Also:  Ogun State, World Bank Sign $300m Financing Partnership Agreement

What we do

A key area of interest for us at United Capital is the financing of these SMEs and young businesses. This is because they have a direct bearing on the health of the economy and ultimately the economic development of African countries.

We are also driven by our ideal of Africapitalism which bets heavily on the potential and power of private enterprise to drive economic change across the continent.

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We have set up the SME Financing desk to assess SMEs and give them access to cheap and professionally structured capital to give them the best chance of survival, expansion, and scaling.

Our approach for our SME Finance Platform is holistic, combining our vast network of relationships with providers of capital with our world-class advisory and deal structuring expertise. The result is a financing service with fantastic rates and invaluable advisory.

SME financing in Africa is a strategic move. It strengthens our economies from the ground up, creates new jobs within each state and opens new highways to economic stability and prosperity for nations. “Our SME Finance Platform is designed to support businesses in Agriculture, Construction/ Real Estate, Healthcare, ICT (Information and Communication Technology), and Natural Resources. You can learn more about it and apply on our InvestNow platform by clicking here.

United Capital

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Latest News

How to finance your SME - Brand Spur

DirectAsia Reveals 5 Factors That Could Influence Your Car Insurance Quotes...

SINGAPORE - Media OutReach - 14 May 2021 - Despite global economic disruptions brought about by the COVID-19 pandemic, car insurance premiums remain steep in Singapore. In a bid to help car owners make informed decisions about their vehicle insurance coverage and ensure accessibility of car insurance, DirectAsia, Singapore's leading online insurer, points out that individuals must first be educated on the determinants of one's policy. The organisation thus puts its support behind car owners by revealing several factors that insurers weigh when pricing out a quote.


How to finance your SME - Brand Spur


1. Vehicle Make and Model

Continental cars, luxury cars and SUVs are typically tied to higher insurance rates. These can be attributed to the importing fees and expensive parts. On the contrary, vehicle owners can anticipate lower insurance rates when owning a car from Japanese or Korean brands.

2. Age of Car

New vehicles are obligated to higher insurance rates as the potential costs of repairing or replacing the car parts are being considered. The rates dip as the car ages and stay at a minimum when the vehicle reaches ten years or more.

3. Experience & Age of Insured


Given that younger drivers have a higher propensity to take risks while driving and pose a greater likelihood of being involved in car accidents, insurers tend to charge higher rates for this age group. This also applies to novice drivers with less than two years of experience behind the wheels. Following that are senior drivers above the age of 65, who may have higher risk of accidents on the roads.

4. Vehicle Modifications


Car modification is one of the lesser-known factors that could raise your insurance premium. Despite that, DirectAsia emphasises the importance of declaring any modifications to the insurer or prospective insurer, as non-disclosure may result in future claims being repudiated.

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5. Claim History

Lastly, claim history is also added to the equation. If a single claim above $10,000 or two or more claims were made in the past three years, insurers might add on loading fees, which results in a higher base premium.

Conversely, individuals with good driving records and no past claims within one year or more are entitled to no claim discount(NCD). This can go up to 60% at DirectAsia.

Revolutionising Car Insurance in Singapore and Beyond


Besides understanding the rating factors, DirectAsia highlights that finding the right insurer to meet an individual's unique lifestyles, preferences and needs is equally critical.

Reflecting DirectAsia's relentless commitment to delivering unrivalled value are its tailored and transparent policies, complemented with exclusive promotions and optional benefits like NCD Protector Plus, Compensation for Loss of Use and more. Both experienced and inexperienced drivers can expect highly customisable motor insurance policies from the award-winning insurer.

Interested individuals can reach out to DirectAsia for a no-commitment quote here.

About DirectAsia Singapore

DirectAsia, a subsidiary of the Hiscox Group, was launched in Singapore in 2010 with a goal of changing the face of insurance in Asia. The industry leader places its customers at the forefront and seeks to make insurance less complex by offering quick, convenient and transparent online insurance policies that are jargon-free. For more information, please visit: https://www.directasia.com/.


#DirectAsia

How to finance your SME - Brand Spur
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spot_imgspot_img

Latest News

DirectAsia Reveals 5 Factors That Could Influence Your Car Insurance Quotes in Singapore

SINGAPORE - Media OutReach - 14 May 2021 - Despite global economic disruptions brought about by the COVID-19 pandemic, car insurance premiums remain steep in Singapore. In a bid to help car owners make informed decisions about their vehicle insurance coverage and ensure accessibility of car insurance, DirectAsia, Singapore's leading online insurer, points out that individuals must first be educated on the determinants of one's policy. The organisation thus puts its support behind car owners by revealing several factors that insurers weigh when pricing out a quote.


How to finance your SME - Brand Spur


1. Vehicle Make and Model

Continental cars, luxury cars and SUVs are typically tied to higher insurance rates. These can be attributed to the importing fees and expensive parts. On the contrary, vehicle owners can anticipate lower insurance rates when owning a car from Japanese or Korean brands.

2. Age of Car

New vehicles are obligated to higher insurance rates as the potential costs of repairing or replacing the car parts are being considered. The rates dip as the car ages and stay at a minimum when the vehicle reaches ten years or more.

3. Experience & Age of Insured


Given that younger drivers have a higher propensity to take risks while driving and pose a greater likelihood of being involved in car accidents, insurers tend to charge higher rates for this age group. This also applies to novice drivers with less than two years of experience behind the wheels. Following that are senior drivers above the age of 65, who may have higher risk of accidents on the roads.

4. Vehicle Modifications


Car modification is one of the lesser-known factors that could raise your insurance premium. Despite that, DirectAsia emphasises the importance of declaring any modifications to the insurer or prospective insurer, as non-disclosure may result in future claims being repudiated.

5. Claim History

Lastly, claim history is also added to the equation. If a single claim above $10,000 or two or more claims were made in the past three years, insurers might add on loading fees, which results in a higher base premium.

Conversely, individuals with good driving records and no past claims within one year or more are entitled to no claim discount(NCD). This can go up to 60% at DirectAsia.

Revolutionising Car Insurance in Singapore and Beyond


Besides understanding the rating factors, DirectAsia highlights that finding the right insurer to meet an individual's unique lifestyles, preferences and needs is equally critical.

Reflecting DirectAsia's relentless commitment to delivering unrivalled value are its tailored and transparent policies, complemented with exclusive promotions and optional benefits like NCD Protector Plus, Compensation for Loss of Use and more. Both experienced and inexperienced drivers can expect highly customisable motor insurance policies from the award-winning insurer.

Interested individuals can reach out to DirectAsia for a no-commitment quote here.

About DirectAsia Singapore

DirectAsia, a subsidiary of the Hiscox Group, was launched in Singapore in 2010 with a goal of changing the face of insurance in Asia. The industry leader places its customers at the forefront and seeks to make insurance less complex by offering quick, convenient and transparent online insurance policies that are jargon-free. For more information, please visit: https://www.directasia.com/.


#DirectAsia

How to finance your SME - Brand Spur
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