Small and medium enterprise financing are the pivot of a successful economy. Financing to these organizations are designed as per the business requirements and are also based upon mezzanine finance i.e. financing for both term loan for the acquisition of capital goods and also working capital. Sanction of such loans are based on accurate estimation of business requirements.
An SME is defined based on the annual turnover, or the number of staffs employed or under such criterion as defined by the Bank of South Sudan. Since SME provides the backbone of the economy of South Sudan, it is of particular importance that the NID Bank provides support to financing the SME sector. Financial support can take various forms i.e., Term loan for machinery acquisition, working capital funding, export credit etc.
An analysis needs to be carried out by the Bank based on need-based financing, expected scale of performance, projected expenses-both fixed, variable and overheads, adequate market surveys to assess the market demands, as also properly assess the period of production cycle.
