Poor communication between entrepreneurs and their bankers is often a stumbling block in the delivery of effective financing for enterprise growth throughout the world. The use of non-financial services (NFS) can help with this.

Bankers regard SMEs as high risk propositions, partly because they often cannot get the information they need from entrepreneurs to see what is going on in the business and why finance is needed. On the other side of the coin entrepreneurs get frustrated with their bankers because they feel that these bankers don’t really understand what ‘doing business’ is all about. As business owners they are not able to articulate their dreams and what they need to achieve these dreams, in a language and form that is acceptable to the banks policies and procedures – so uneasy conversations and relationships ensure and mutually beneficial opportunities are missed.

One way of improving these relationships and unlocking these opportunities is through the use of targeted NFS.  The provision of NFS to business clients is not new for the banking sector, where specialist adviser services, membership to premium business clubs and associated networking events and trips have long been offered to corporate clients.  However, the provision of such services specifically targeted at smaller businesses is a more recent phenomenon particularly in emerging markets.