 |
What form of business is best?One of the most important things you need to do is to decide what form of business your SME will be? There are many forms of businesss: from sole proprietorships, to partnerships, to CCs, to PTY LTDs. The most likely form for your small business will either be sole proprietorship or a close corporation. |
Nature of Finance
The Bank provides finance for:- Private sector start-ups and expansions
- Equity deals
- Bridging finance
- Enterprise development finance
- Trade finance
- Franchise Finance
- Small and medium enterprises
- Public private partnerships
- Public sector infrastructure
- Local Authorities
- Microfinance
In the interest of viability of projects the Bank provides a number of incentives and concessions to lenders.
- An initial grace period
A limited, initial grace period is available to certain classes of loans to allow the lender to concentrate financial resources on development of cash flows. - Extended terms of loans
Private sector loans are granted for a period of 10 years, and public sector loans are granted for a period of 20 years. - Favourable interest rates
Although the Bank parallels commercial lending rates, rates can be assessed on the basis of projects' development impact. - Syndication
In line with its philosophy of partnership, the Development Bank of Namibia involves other parties in project finance syndication arrangements to ensure additional financing to realise projects.
