BUSINESS DEVELOPMENT SERVICE PROVIDERS – BDSPs (or SME CONSULTANTS)
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 324 SME Consultants as Business Development Service Providers (BDSPs).
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 micro, small and medium projects”.
The BDSPs are categorized into 3; National, Regional and State based on coverage area, geographical spread/presence and technical capabilities.
|S/NO||COVERAGE||NUMBER OF SME Consultants|
The BDSPs are expected to provide the following services:
– 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.
The BDSPs will be paid a fee for supporting SME’s by preparing their business plans and loan applications to BOI.
There are two (2) types of fees payable to the BDSPs as follows;
1. 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|
2. Success Fees (Payable by BOI when the loan is approved/disbursed):
|S/N||LOAN AMOUNT (N)||SUCCESS FEES (%)||MINIMUM
|MAXIMUM FEE (N)|
|1||Up to N200million||1%||N/A||N2.0m|
|2||Above N200million to N400million||0.8%||N2.0m||N3.2m|
|3||Above N400million to N600million||0.7%||N3.2m||N4.2m|
|4||Above N600million to N800million||0.6%||N4.2m||N4.8m|
|5||Above N800million to N1 Billion||0.5%||N4.8m||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.
2. 50% of Success Fee is paid at loan approval stage and another 50% at loan disbursement stage.