|
SME Value
SMEs uniformly acknowledge their inability to present a business plan in the financial terms a banker needs to process a loan application. Training with the FMI software revolutionizes the SMEs ability to communicate to bankers in the requisite language of finance. The software helps the SME enter financial data to produce an internationally accepted income statement and balance sheet, and a set of financial ratios.
SMEs frequently complain that they do not understand the loan application process, nor how to communicate to banks in terms bankers understand. FMIs training and software program introduces them to financial concepts based on practical examples, and assists them in better understanding the operations of their own firm. Our approach of “working both sides of the street” empowers SMEs by facilitating their understanding of why (or why not) their financing needs are met by a bank. No longer will an SME owner/manager be able to say, “I do not know why we did not get financing.”
Allows a SME to Create and Understand Financial Statements.
- Income Statement
- Balance Sheet
- Cash Flow Statement
- Key Financial Ratios
Allows SME to Answer Key Business Questions:
- What can I do to improve profitability and cash flow?
- How well is my business performing now?
- How is my business structured for growth?
- What are the key financial risks that I need to manage?
- What are the financial sensitivities to changes in the business environment?
- What is the impact of my working capital management on profitability and cash flow?
- “What IF” functionality allows the SME to examine the impact of a decision before it is made.
- Great for planning, decision making and setting loan covenants to ensure the loan will be repaid.·
- Sensitivity Analysis
- Reports
Allows the SME to set Goals and Monitor Projection Assumptions:
- Create projection assumptions.
- Monitor performance against projections.
- Compare actual results with projected results.
- Set business goals.
Understand financial risk and how the business decisions impact cash flow.
FMI bridges the gap between SMEs and commercial banks, enabling them to converse on profit and loss, cash flow, financial projections, and credit worthiness, to facilitate capital mobilization and build economies.
|
