Nedbank’s offer to SMMEs
October 4th, 2006Nedbank are currently advertising free banking for two years to SMMEs, provided they take a loan of R100 000.
What I did find interesting is one of their requirements is that the business
must produce management accounts. They say:
A critical component of the ongoing relationship is the submission of monthly MANAGEMENT ACCOUNTS to Nedbank Small Business Services.
This should not be seen as policing, rather as part of relationship building. These accounts should be produced anyway for effective management. A free flow of information would facilitate easy decision-making especially where additional finance is required for expansion purposes, or to meet important orders or merely to see the business through difficult times.
and they go on to say:
It should be noted that if Management Accounts are not received on a monthly basis, Nedbank Small Business Services reserves the right to send in consultants to prepare these accounts. The costs incurred will be for the account of the
applicant.
I could not agree more with them - especially their second paragraph.