1. TRAINING OF TRAINERS (TOT) FOR UWEZO FUND MANAGEMENT COMMITTEE ON SOURCES OF BUSINESS FUNDS MODULE

2. Session outline Identify various sources of business funding
Identify conditions for each source of funding

3. Sources of business funding
Personal and/or family savings including retirement benefits, pension, bank savings, shares, awards.
Family and friends.
Conversion of assets into business investment e.g. sale of land, vehicle, equipment, house etc.
Government grants and special projects, ( e.g. Uwezo fund, YEDF, WEF, Njaa Marufuku, SME fund)
Short, medium and long term borrowing from financial institutions
Microfinance institutions, NGOs and CBOs
Inviting partners into the business.

4. Sources of business funding…(2)
Angel investors and Venture Capitalists
Membership of savings & credit societies (Co-ops, table banking, rotating savings & credit associations).
Supplier credit for working capital
LPO financing, Invoice discounting.
Pre-payments by customers.
Hire purchase
Leasing of equipment
Other local sources

5. Conditions for each source of funding
Security – e.g. title deed, guarantors, log book, share certificates
Savings – e.g. 6 months savings, have operated table banking
Purpose of loan – why the money is required
Amount of loan – some give specific periods
History of the borrower – repayment history, credit reference bureau
Insurance –
Repayment period – short term or long term
Type of business to be funded

6. Effective use of business finances
Honour contractual arrangements with the lender – pay when due
Ensure funds are utilized for the intended purposes
Avoid diversion of funds to unplanned activities or conversion from one item of the project to another.
Have an implementation plan for your activities with timelines.
Stick your budget as much as possible.

7. Group work
Aim: To analyze the conditions provided by the existing lenders in your locality
Instructions:
Use information that you know about existing lenders in your locality to analyze and compare so you are able to select the most suitable one for your business.

8. Thank you for participating
Any questions?