Page 6 - NIBAF-Training Matters July - December 2022

SMEs often struggle to obtain finance
through traditional means stifling the Product Development &
entrepreneurship potential owing
either to lack of collateral or Program-based Lending
appropriate credit products to suit the Program based lending is one of the During the H1-FY 2023, NIBAF conducted

peculiar business conditions of the vital pillars for the Promotion of SME three awareness programs on
sector. Such barriers to accessing Finance. Product development and “Entrepreneurship Skill Development” for
trade or working capital finance has innovation in SME Banking is critical students from University of Home
inhibited the sector’s growth for ages for business sustainability. However, Eonomics-Lahore, University of Gwadar,
and has now led to development of many financial institutions struggle University of Turbat and Iqra University-
alternate financing solutions to with developing and selling products Islamabad. Mr. Gulzar Khan, Joint
provide the required liquidity. Value that effectively meet the customer Director, SBP who is also a Startup &
Chain Finance (VCF) has come to be requirements. Entrepreneurship Campaigner for NIBAF
recognized as a viable financing Hence this course was designed to discussed important SBP schemes,
alternative for SMEs which enables learn best practices for developing a global and local entrepreneurship
small businesses to address the competitive product range for SME business strategies and success stories.
uncertainty of cash flow while also clients, developing customer centric The program also emphasized on the role
building stronger supplier products and bundles, and to track and importance of incubator centers
relationships. trends and innovations in SME where students can discuss and develop
NIBAF developed a new program in products from global/domestic innovative ideas and transform them into
the area that focused on the concept, experiences. NIBAF conducted the viable business option. The participants
products and business models of program online from November 28- showed enthusiasm in developing
VCF, VCF assessment and risk 29, 2022. Mr. Yasir Butt, Head entrepreneurship ideas and asked
profiling and opportunities to leverage Product, The Bank of Punjab relevant questions with respect to bank
technological innovation. Mr. Yasir discussed bank business models, financing options, repayment structure
Butt, Head Product, The Bank of understanding SMEs profiles and and idea generation for online
Punjab conducted the session at credit requirements, the need for businesses. Almost four hundred
NIBAF-Lahore from October 24-25, program based & relationship students from Commerce, Finance and
2022. He discussed role of VCF in lending, process of product Marketing attended these programs.
securing bank loan, factoring and development for program based
reverse factoring, role of anchor lending, research methods, market
company, VCF models in different analysis, processing technology,
countries, technology oriented new product and financial feasibility, final
business models, identification of design of program, roll-out and
weak and healthy value chains and maturity, development of prototype,
product mapping, building blocks of evaluation and commercialization,
VCF for FIs, key considerations for types of program products, role of
selecting VCF technology partner. Mr. value chains in program lending,
Yasir extensively used case studies issues and challenges. Case studies
and practical demonstration to help were also discussed in the program
the participants understand the key with hands-on exercises to enable
concepts in VCF and its application participants develop their own
both globally and on a domestic level. program-based product.

Risk Management &
Credit Evaluation
Techniques for SME
Financing

SMEs play an important role
in most economies, yet
lenders struggle to come up
with an efficient model to
assess their
creditworthiness which
constrains adequate flow of
funding to this sector. due
to inconsistency in the quality of