SME CONSULTANTS (or BUSINESS DEVELOPMENT SERVICE PROVIDERS – BDSPs)
In a bid to address the challenge of access to credit by SMEs, and to hasten the credit delivery process, the Bank of Industry (BOI) Limited has appointed 279 Consultants as Business Development Service Providers (BDSPs) and signed service agreements with them. Based on preferred areas of coverage, office spread and their capacity to secure financing from the Bank, these consultants are categorized as follows:
|S/NO||COVERAGE||NUMBER OF SME Consultants|
This strategic partnership with SME Consultants is in furtherance of the Bank’s core mandate “of providing long-term financial and business support services to large, medium and small projects”.
The services the SME Consultants are expected to provide include the following:
- Collaborating with BOI to identify credible SMEs that require finance;
- Assisting SMEs in the development of bankable business plans and proposals towards accessing finance at BOI (guided by BOI’s Risk Acceptance Criteria);
- Collaborating with BOI to conduct periodic post-finance monitoring of the SMEs, as required.
- Other services are to provide post-finance services such as mentorship, hand-holding, financial advice and encourage SMEs to inculcate best practice;
- Supporting SMEs to develop synergies and linkages with large enterprises, industrial buyers and suppliers along the value chain.
Effective July 2, 2018, BOI increased the fees of the SME Consultants to further encourage them in supporting SME’s by preparing their business plans and loan applications to BOI.
There are two (2) types of fees payable to the SME Consultants as follows;
- Initial Fees (Payable by the SMEs):
|S/N||LOAN AMOUNT (N)||FEES|
|1||Up to N10million||N10,000|
|2||Above N10million to N50million||N25,000|
|3||Above N50million to N200million||N50,000|
|4||Above N200million to N400million||N100,000|
|5||Above N400million to N600million||N150,000|
|6||Above N600million to N800million||N200,000|
|7||Above N800million to N1 Billion||N250,000|
- Success Fees (Payable by BOI when the loan is approved/disbursed):
|S/N||LOAN AMOUNT (N)||SUCCESS FEES (%)||MAXIMUM FEE (N)|
|1||Up to N200million||1%||N2.0m|
|2||Above N200million to N400million||0.8%||N3.2m|
|3||Above N400million to N600million||0.7%||N4.2m|
|4||Above N600million to N800million||0.6%||N4.8m|
|5||Above N800million to N1 Billion||0.5%||N5.0m|
1. The fee for any BDSP shall be the success fee as applicable to the loan amount or the maximum fee in the preceding band, whichever is higher.