SZÉCHENYI SME CARD PROGRAM KAVOSZ cplc

Transcription

1 SZÉCHENYI SME CARD PROGRAM KAVOSZ cplc

2 SMALL AND MEDIUM ENTERPRISES 10 Million Population 1.6 Million registrated Enterprises in Hungary 99% is Small and Medium Enterprise (SME) 580,000 active 2.2 employees per enterprises enterpreneurs + employees + family members 3 Million persons, 30 % of the population

3 SITUATION Capital shortage Lack of financial problem solutions Miss of Current Assets Lack of concept Lack of access to finance Bank holds back on credits Bank mistrustfulness Afraid of sharing ideas with each other Worldwide crisis

4 THE PRODUCT A special financial tool Széchenyi SME Credit Card Available for a wide range of SMEs Extremely fast (two weeks) At the lowest interest rate and costs level Distributed by door-to-door servicing Optimal credit facility to the SME s Easy understanding 2-year expiry Accepts and considers all the viewpoints and interests of the participant institutions (Government, NAEE, Chamber of Commerce, Commercial Banks and Saving Banks and Credit Guarantee Institutes)

5 THE ROLES The interest-protection organizations: VOSZ ( National Association of Entrepreneurs and Employers ) and MKIK (Hungarian Chamber of Commerce and Industry) established KAVOSZ cplc. in April, 2002, to accomplish the functionable tasks KAVOSZ cplc. does the complete coordination of Széchenyi SME Card

6 STATE PLAYERS AND THEIR ROLES The program has been taken up by the Government, with State support Decision has been made for subsidizing Széchenyi SME Card Covered by the Creditguarantee Plc. s state warranty Supplied with Guarantee Fee support and Support on interest rate

7 THE CONSTRUCTION Upto EUR 160,000, charge account credit ( minimum EUR 1,500 ) 1 +1 year duration (prolongable) Interest and guarantee fee support (2% and 0.75%) Advantageous constructions Advantageous coverage Lengthening, appropriation raise possibility, new requiry Bank card (MasterCard) Quaterly redemption obligation

8 THE DESCRIPTION Achieves the trust between SME sector and the banks by: Simple, emphatic communication, speaking SME s language Formed based on real SME needs Cheap (low cost) and fast funding Simple and standardized treatment Chambers and NAEE trustful relationship with SME s new type of selling channel Enhances financial discipline of SME s Whitening the economy, subserves the achievement of obligations in administration and obligation in tax discipline Redoundes the usage of credit cards, the cash-free payment methods

9 THE STRUCTURE Ministry for National Development and Economy support s accounting Registrating associations informing requiries accepting pre-scoring Feedback KAVOSZ cplc. As agent to banks checking clients The construction s maintaining, modifying Coordinating Support downloading and forwarding Credit associations Credit censuring, contracting CG Plc. Warranty taking requesting Granting, administrating Account management NET supports downloading Terminating loan contracts CG warranty redeeming providing requirement Client contracting Credit Guarantee Plc. Warranty taking Redeeming

10 SZÉCHENYI SME CARD PROGRAM ELEMENTS Széchenyi Credit Card Amount: 1, ,000 EUR Interest: BUBOR + 4% Duration: months Interest subsidy: 1% Guarantee fee: 1.4% Guarantee fee subsidy: 0,75% Széchenyi Working Capital Loan Amount: 3,000 80,000 EUR Interest: BUBOR + 5% Duration: months Interest subsidy: 3% Guarantee fee: 1.6% Guarantee fee subsidy: 0.75% Széchenyi Investment Loan Amount: 3, ,000 EUR Interest: BUBOR + 4.5% Duration: months Interest subsidy: 5% Guarantee fee: 1.3% Guarantee fee subsidy: 0.65%

11 SZÉCHENYI SME CARD PROGRAM ELEMENTS Széchenyi Agricultural Credit Card Amount: 1, ,000 EUR Interest: BUBOR + 4% Duration: or 36 months Interest subsidy: 4% Guarantee fee: % Guarantee fee subsidy: 0.75% Széchenyi Own Fund Complementary Loan Amount: 3, ,000 EUR Interest: BUBOR + 4.5% Duration: months Interest subsidy: 5% Grace period: max. 24 months Guarantee fee subsidy: 0.65% Széchenyi Subsidy Pre-financing Loan Amount: 3, ,000 EUR Interest: BUBOR + 4% Duration: months Interest subsidy: 5%

12 THE CONDITIONS Creditable SME s All possible company types No expired State obligations 1 or 2 years history records SME definition in EU : max. 250 employees, max. EUR 40 M income/ year max. EUR 27 M total balance Apart from most of the clients have income < EUR 1 Million

13 THE FEES Registration fee Card fee (including all fees during the granting) Fees paid under the duration (accounting, interest rates, transactional fees)

14 BACKGROUND Credit Guarantee Plc. warranty Private persons warranty Private (no self-warranty possible) Joint (min. 50 % ownership) Ltd. min. 1 outside member Same person can not be warrantor in two transactions Standard pre-scoring procedure by PD software

15 BENEFITS FOR FINANCIAL PLAYERS ASPECT Very popular loan type among SME s Acquisition kit, market share raising tool Mass product with standard processes (unity cost decreases) Bank income inducing Usage of agent network during accepting and tackling requests (saving pre-work) Automated electronic connections (CG Plc., KAVOSZ, managing internal bank processes)

16 BENEFITS FOR SMES ASPECT 160,000 Euro bank account credit without material cover Moderated conditions than usual credit types Usability by credit card Fast fall on (2 weeks) Advantageous conditions Net interest paying Interest support, guarantee fee support Optional choice between the preferential account packages Individual bank option, complete area coverage

17 BENEFITS IN THE STATE ASPECT Effective method of SME sector support Facilitating to provide advantageous circumstances by breeding race conditions Cheap supporting tool (more tax granted than subsidy needed) Development tool to the countryside, growth in the incomes of local government Sthrengthening the base of the electing public Increasing employment Whitening of the economy

18 BENEFITS IN KAVOSZ ASPECT Countrywide office network Professional staff, preparing the base to other possible credit product s distribution Unique client database (statistics, analysis, scorings) Commercial possibilities (consumer group, marketing activities on the client database) Base to other products and constructions (Investment credit, Credit Buro) Profitable activity

19 BENEFITS FOR INTEREST-PROTECTION ORGANIZATIONS ASPECT Further services to members Recruitment new members Prepared staff, development of a network, able to handle other similar product s managing Profitable activity Developing countrywide office network

20 BENEFITS FOR CREDIT GUARANTEE PLC. ASPECT Effective help to SME s in gaining credit Significant income by warranty taking fees Default rate <4% (actual) Developing an IT background able to accept requiremets of SME s

21 THE RESULTS Number of applications over 300,000 ( ~30% of full SME s population) Overhanded amount of Cards over 225,000 Active cards in use > 30,000 Average 2,000 applications per month Over 5 billion EUROS capital allocated into the economy (total) Proportion of applicants: Approx. 15% Budapest (capital) Approx. 85% countryside Accessable at: 900 settlements 2,526 branches ( 85% of the Banks in Hungary are partners)

22 ADAPTATION This successful tool can be adapted in any country There is accomplished written and verified know-how in KAVOSZ cplc., with more than 10 years experience Credit guarantee and personal warranty backgroung is convertible KAVOSZ is ready to examine the circumstances and possibilities and flexibly transform the know-how according to the needs KAVOSZ is also open to discuss about setting up a new organization, even a joint venture responsible for fulfill the interests of all participants The only task is to join the forces of extant associations along they interest relations