internal controls, systems and procedures and procedure... · internal controls, systems and...
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INTERNAL CONTROLS, SYSTEMS AND PROCEDURES
Direct Lending - Enquiry Process
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TABLE OF CONTENTS
1. DEFINITIONS AND ABBREVIATIONS ............................................................ 3
2. GUIDING PRINCIPLES ................................................................................... 4
3. ENQUIRY PROCESS FLOW CHART DIAGRAM ............................................ 5
4. ACCOUNTABILITY AND RESPONSIBILITIES ................................................ 6
5. SUPPORTING NARRATIVE ............................................................................ 7
6. SUPPORTING sefaLAS TRANSACTIONS .................................................... 17
7. ANNEXURES ................................................................................................ 25
7.1. Enquiry form .......................................................................................................... 25
7.2. seda Referral Letter ............................................................................................... 26
7.3. Referral Register ................................................................................................... 27
7.4. Eligibility Criteria .................................................................................................... 27
7.5. Exclusions ............................................................................................................. 27
7.6. SMME Definitions .................................................................................................. 28
7.7. Wholesale Partner Institutions ............................................................................... 29
7.8. Example of monitoring report................................................................................. 31
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1. DEFINITIONS AND ABBREVIATIONS
Abbreviation / term Description / Definition
Enquiry An enquiry is a request for financial or
general assistance by existing or aspiring
entrepreneurs. The request can be either
through telephone, email, walk-ins, letters,
faxes or online.
Finance enquiry A finance enquiry relates to specific
questions relating to sefa finance such as
Can sefa finance my type of
business? or
How do I apply for finance?
Once-off general enquiry These are once-off enquiries that are more
general in nature, such as:
Can you provide me with information
regarding sefa? or
What other services does sefa offer?
Enquirer That is a party that makes the enquiry.
CLO Client Liaison Officer
CLS Client Liaison Supervisor
HoR Head of Regions
HSR Head Stakeholder Relations
RA Regional Administrator
IA Investment Analyst
RM Regional Manager
seda Small Enterprise Development Agency
sefaLAS Small Enterprise Finance Agency – Loan
Administration System
CLC Client Liaison Centre
FAQs Frequently Asked Questions
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2. GUIDING PRINCIPLES
This section outlines guidelines and principles that must be adhered to at all times
when handling enquiries:
Enquiries can be in the form of either a finance enquiry or a general once-off
enquiry
An enquiry is an interaction that requires follow-up, referral, escalation and/or
additional action.
All finance enquiries by existing or aspiring entrepreneurs must be captured on
sefaLAS within predetermined timelines and are allocated unique reference
numbers
Enquiries are either handled by CLC (at Head Office) or directly by Regional
Offices
The unit (i.e. CLC or Regional Office) where the enquiry is lodged and captured
must handle the whole enquiry process until it (process) is closed
All online enquiries will be processed by CLC
Parties making enquirers need to be updated at all times regarding the status of
their enquiries as well the process
Communication with clients can be verbal/oral, but written communication is
encouraged
All interaction/communication with enquirers (only finance enquiries) must be
captured in the comment box in sefaLAS
In order to manage open enquires, RM/CLS must print the summary reports of
open enquiries on weekly basis. These reports must be dated, signed and filed
In order to comply with FAIS, all personnel dealing with enquiries are given training
that equips them not to give financial advice to enquirers
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3. ENQUIRY PROCESS FLOW CHART DIAGRAM
2.
Determine if it
is a finance
enquiry?
No
3.
Provide basic
information
Yes
4.
Capture all
finance
enquiries on
sefaLAS
5.
Basic screening to
determine mandate
fit?
No
6.
Refer to
alternative
institution
Yes
7.
Does enquirer have a
completed application
form?
Yes
11.
Advise the enquirer to
submit a formal
application to the
regional office
No
8.
Issue
application
form
9.
Further
assistance
required?
Yes
10.
Refer to seda
12.
Close enquiry
on sefaLASNo
1.
Potential client
approaches sefa
for possible
assistance
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4. ACCOUNTABILITY AND RESPONSIBILITIES
A = Accountable / R = Responsible
Activity / Task CLO CLS RA RM HoR
1. Potential client approaches
sefa for possible assistance
R A R A
2. Determine if it is a finance
enquiry?
R R
3. Provide basic information R R
4. Capture all finance enquiries
on sefaLAS
R R A
5. Basic screening to
determine mandate fit
R R
6. Refer to alternative
institution
R R
7. Does enquirer have a
completed application form?
R R
8. Issue application form R R
9. Further assistance
required?
R R
10. Refer to seda R R
11. Advise the enquirer to
submit a formal application
to the regional office
R R A
12. Close enquiry on sefaLAS R R A
13. Monitoring of open enquiries R A R A
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5. SUPPORTING NARRATIVE
Activity / Task linked to
flow diagram
Narrative
Tools
Document
output
Turnaround
time 1
1. Potential client
approaches sefa for
possible assistance
o Email: Enquiries that are received via a dedicated
email address ([email protected]) must be
cleared by CLOs on a daily basis and are allocated
reference numbers once captured on sefaLAS.
Email enquiries are received by CLOs via outlook
helpline email address. This touch point receives
various emails, most of which are spam mails. CLOs
attend to email enquiries on a rotational basis. The
CLO that is responsible for helpline that week first
needs to go through the emails and remove all the
spam and only leave enquiries. Once that has been
done, the emails are responded to using standard
letters that can be edited to accommodate each
question that the client has and sent back to the
client.
Enquiry
reference
number
1 Helpline and Online Enquiries = 48 hours (2 business days) & Walk-Ins and Telephone Enquiries (24 hours = 1 business day)
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The standard responses include:
Probe letters – a letter sent to an enquirer that did
not provide all the basic information (e.g. the
nature of the business, amount required, whether
they have a business plan and where they are
based, etc.)
Exclusion letters – a letter sent to an enquirer
whose business falls under sefa’s investment
restrictions (exclusions) or whose requirement is
above sefa limit of R5m.
General letter – a letter sent to client who has
provided all the required basic information and
meets the minimum requirements.
Once a response is provided to an enquirer, CLO will
then close the enquiry.
o Telephone: The RA/CLO receives all incoming
enquiry calls and records the enquirers’ information
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and provides the information that they require (basic
information). This information is captured on
sefaLAS and will generate an enquiry number after
saving. The enquirer is then given the enquiry
number by CLO/RA for future reference or
interactions with sefa.
Once a response is provided to an enquirer, CLO will
then close the enquiry.
o Walk-ins: Walk-Ins come through reception and are
given an enquiry form to complete. After the
completion of the form they will be assisted by either
the RA or IA. Once assisted comments will be
written on the enquiry form and the form is then sent
to the CLC/RA for capturing on sefaLAS and filling.
Once it’s captured the reference number is written at
the top of the form and the enquirer can be traced in
future using the same reference number.
Once a response is provided to an enquirer, CLO/RA will
then close the enquiry.
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o Postal: Postal enquiries are allocated to RA/CLC
when received at reception. The RA/CLC will
communicate with the enquirer either by email,
telephone or mail and follow the process similar to
online email enquiries (i.e. issuing a probe, exclusion
or general response).
A unique reference number is allocated to all postal
enquiries and communicated to enquirers to use for
future correspondence.
Once a response is provided to an enquirer, CLO/RA will
then close the enquiry.
o Online: These are automated enquiries where the
enquirer is issued with a reference number at the
end of the enquiry. Online enquiries must be
responded to within the prescribed timelines
The process starts when an enquirer makes an
enquiry by providing all required details on the sefa
website. If the enquirer does not meet the minimum
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basic requirements (e.g. they do not have a
business plan) the system will automatically redirect
them to the seda website; however, if they meet the
minimum requirements, sefaLAS automatically
generates an enquiry number and sends it by SMS,
indicating that a sefa consultant will contact them
within 48 hours.
This enquiry number then comes to CLC as a task
via email to the CLO’s personal email address. Once
the CLO has received it he/she sends the enquirer
an application pack and allocates the enquiry to the
regional office closest to where an enquirer is based.
Once a response is provided to an enquirer, CLO
will then close the enquiry.
o Outreach events (roadshows, breakfast events,
etc.): Enquiries that are generated at various
outreach events are recorded on the visitors’ register.
Upon returning from such events the leads are
captured on sefaLAS by CLO or RA.
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The CLO/RA will contact the enquirer and establish if
they are interested in applying for sefa funding. In an
event where the enquirer has application forms, they
will be referred to the regional offices to lodge a
formal application otherwise the CLO/RA will send
the application forms by email or mail
2. Determine if it is a
finance enquiry
o Typical enquiries are received by a CLO at Head
Office or by a RA at Regional Office. The CLO is
also responsible for receiving all on-line enquiries.
o An enquiry can be a once-off general enquiry or a
finance enquiry.
o A once-off general enquiry could be the following:
o How do I apply for finance?
o Can you provide me with information regarding
sefa;
o What other services does sefa offer?
o A finance enquiry could be the following:
o Can sefa finance or assist my type of business?
o The CLO/RA needs to determine if the enquirer has
a finance enquiry.
FAQs
Product
Brochures
Website
referral
3. Provide basic
information
If this is a once-off general enquiry then the CLO/RA
can immediately provide the information.
There is no need to capture these general once off
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enquiries
4. Capture all finance
enquiries on
sefaLAS
If the enquiry is a finance enquiry then the CLO / RA
must capture all enquiries from various touch-points
on sefaLAS.
The question of the enquirer needs to be captured in
the comment box of the enquiry form.
Only online enquiries are automatically migrated to
sefaLAS.
An enquiry number will be generated and the client
needs to be informed of that number to be used for
future reference and communication with sefa.
CLO/RA will communicate the reference number to
the enquirer via email or telephone (depending on
the initial touch point)
Enquirers that need wholesale facilities must be
captured on sefaLAS and referred to the Wholesale
Unit
Enquiry number
5. Basic screening to
determine mandate
fit
All finance enquiries must be assessed to establish if
they fit sefa’s mandate by the CLO/RA.
It must be tested against sefa’s criteria (as
contained in sefa’s Credit Policy)
o Exclusions
o Eligibility
Sefa Credit Policy
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o Thresholds
If the CLO/RA is uncertain of the interpretation of the
Credit Policy the RM or CLS need to be consulted.
The outcome of this screening is that the enquiry will
change to either: “screening successful” or
“screening unsuccessful” on sefaLAS
The enquirer needs to be informed of the outcome of
this screening.
6. Refer to alternative
institution
If the screening is unsuccessful then the enquirer
needs to be informed of this outcome with reasons
provided.
In addition, all enquiries with unsuccessful screening
must be referred to relevant external parties that
could be of assistance.
Referrals can be made to other DFIs; sefa
Wholesale Partners; SME supporting institutions
(seda, NYDA, Business Partners, Banks)
The CLO/RA should refer applicants to websites of
the relevant external parties
The referral can be done verbally or in writing
Enquiries must be closed after being referred to
alternative institutions
Intranet (list of
wholesale
partners and
other DFIs
offerings)
Referral
register
SMME
Definitions
An email or
written referral
will be
preferred, but a
verbal/oral
referral is
acceptable.
7. Does enquirer have If the basic screening is successful, the CLO/RA
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a completed
application form?
needs to determine if the enquirer has a completed
sefa application form.
8. Issue application
form
o If the basic screening is successful the
CLO/RA must dispatch application packs (via
email or hand-outs) to all enquiries that fit the
sefa mandate and close the enquiry.
Application forms;
Business Plan
Template
9. Further assistance
required?
The CLO/RA needs to determine if the enquirer will
require assistance in the preparation of an application to
sefa.
10. Refer to seda If assistance is required, then the CLO/RA needs to draft
a letter of referral to the client and seda.
Letter of referral
to seda (copied
to the enquirer)
11. Advise the enquirer
to submit a formal
application to the
regional office
If the screening was successful and the enquirer has
a completed sefa application form, then the enquiry
process terminates
The enquirers are informed by the CLO/RA to
approach the regional office and lodge formal
applications. The CLO/RA needs to explain the
process forward with the enquirer.
The enquiry can then be closed.
Completed
application pack
12. Close enquiry on
sefaLAS
Enquiries need to be closed on sefaLAS by the CLO /
RA when no further follow-up is required such as (1) the
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questions asked by the enquirer has been answered; (2)
when an enquiry has been referred to another institution
either for funding or assistance with potential application.
It can also be closed when an application is received and
an application has been lodged.
13. Monitoring of open
enquiries
Enquiries have to be monitored weekly by the
responsible RM and CLS. The RM/CLS need to
follow up with the RA/CLO that open enquiries are
attended to.
Enquiries should not remain open for longer than 48
hours (2 business days) and the CLS/RM need to
ensure that overdue open enquiries are attended to.
All open enquiries are monitored on a weekly basis
at the meetings with the regional managers.
sefaLAS
enquiry
summary report
Weekly
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6. SUPPORTING sefaLAS TRANSACTIONS
Activity / Task linked to
flow diagram
sefaLAS screen print
1. Potential client
approaches sefa for
possible assistance
No sefaLAS action
2. Determine if it is a
finance enquiry
No sefaLAS action
3. Provide basic
information
No sefaLAS action
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4. Capture all finance
enquiries on sefaLAS
19
5. Basic screening to
determine mandate fit
Change status from screening to Screening Unsuccessful or Screening Successful – show how it is done
Screening Tasks Completed:
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Screening Status Change:
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6. Refer to alternative
institution
Include comment on comment box
Enquiry referred via status change
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7. Does enquirer have a
completed application
form?
8. Issue application form After successful assessment a task is generated to issue an application form
9. Further assistance
required?
10. Refer to seda Include comment on comment box
11. Lodge formal application
and start of assessment
process
Convert enquiry to application after completing the ‘issue application forms’ task is completed
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12. Close enquiry on
sefaLAS
Enquiry is automatically closed when converted to an application, referred or screening unsuccessful and all
outstanding tasks completed.
13. Monitoring of open Done via reports
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enquiries2
2 In order to manage open enquires, RM/CLS must print the summary reports of open enquiries on weekly basis. These reports must
be dated, signed and filed
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7. ANNEXURES
7.1. Enquiry form
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7.2. seda Referral Letter
27
7.3. Referral Register
7.4. Eligibility Criteria
• SMMEs owned by South African citizens and/or permanent residents
• Legally registered SMMES including sole traders with fixed physical addresses
• Applicant(s) must be within the required contractual capacity
• Businesses must be registered and operating in South Africa
• Businesses must comply with generally accepted corporate governance practices
appropriate to their legal status
• Applicants must have a written proposal or business plan that meets the requirements of
sefa’s loan application criteria
• Applicant must demonstrate the character and ability to repay the loan
• The majority shareholder(s) must be the owner manager of the business
• Applicants must provide securities/ collateral (where it is available)
• Applicants must have a valid tax clearance certificate
7.5. Exclusions
• Manufacturing and selling of ammunition
• Tobacco, liquor, gambling and sex trade (sin industries)
• Non-profit organisations
• Political organisations
• Persons under debt review
• Un-rehabilitated insolvent shareholders and/or directors of applying entities
• Primary agriculture (except cash crops and the applicant must have an off take
agreement)
• Speculative property development
• Labour brokers
Company's Name Contact Person Contact Details Type of Business Enquirer's Needs Reffered to
1
2
3
4
5
6
7
8
9
10
Refferal Register
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7.6. SMME Definitions
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7.7. Wholesale Partner Institutions
JV Partnerships
Anglo-Khula Zimele Joint Venture
The fund started in 2003 and invests in viable SME companies that are involved in small scale mining and
related activities within the Republic of South Africa. The fund provides equity and/or debt instruments, with
equity stakes taken no exceeding 49% of the issued share capital of investees. Individual investments
range between R1m and R20m (per project). SME financing is capped at the prevailing prime lending rate.
Business Partners-Khula Start- up Fund
Business Partners Limited is a specialist risk finance company for formal small and medium enterprises
(SMEs) in South Africa, and selected African countries. The company actively supports entrepreneurial
growth by providing financing, specialist sectorial knowledge and added-value services for viable small and
medium businesses.
Khula-Enablis Loan Fund
Enablis Financial Corporation is a private sector-led and global non-profit organization founded by Charles
Sirois, Chairman and Chief Executive Officer of Telesystem Ltd., a private holding company of which he is
the founder and principal shareholder. The other founding partners are, the Canadian International
Development Agency, Accenture and Hewlett-Packard.
The fund offers expansion-stage funding in the form of loan guarantees for debt facilities provided by FNB
to preferably black entrepreneurs seeking to expand their businesses in the ICT sector. Loan guarantees
for loans of not less than R250 00 000 and not more than R5 million per investee. The loan guarantees are
up to 90% of loans granted.
Khula-Enablis SME Acceleration Fund
The fund offers an array of financial instruments that include loans, convertible loans, shares, debentures or
convertible debentures, warrants, options and other securities. It assists SMEs that require investments of
not less than R25 000 and no more than R1million at any single time and no single investee can have
investments of more than R2.5million in aggregate.
Identity Development Fund
Identity Development Fund (IDF I) is an en commandite partnership between Khula Enterprise Limited
(Khula) and Identity Development Fund (Pty) Ltd (“IDF”). The fund provides a combination of loan and
equity funding targeted at black women and youth-owned business enterprises and focuses on start-up and
early expansion. The fund is managed by Identity Development Fund Managers (Pty) Ltd.
Utho Capital Infrastructure SME Fund
The fund provide support to BEE SMEs in infrastructure development, construction related industries and
property development. Construction related includes various types of businesses directly related to the
construction industry e.g. production and supply of gauge steel trusses, maintenance and supply materials
used in road construction, plumbing system installation, electrical installation and maintenance and similar
businesses.
Khula-Akwandze Fund
Khula–Akwandze Fund only finances black sugarcane farmers in Mpumalanga and Pongola region of
KwaZulu Natal. The purpose of the Fund is to finance small to medium scale sugar-cane growers in the
Malelane, Nkomati areas in the Mpumalanga Province.
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RFIs CONTACT LIST
Business Partners Khula
Start- Up Fund
23 Jan Hofmeyr Rd
Westville
Durban
3630
Tel: 086 176 3341
Fax:031 267 1002
Email:[email protected]
Website:www.businesspartners.co.za
sefa Awethu Youth Fund 11 Kotze Street Johannesburg
2017
Tel: 011 024 1606
Fax: 086 599 4799
Email:[email protected]
Website: www.AwethuProject.co.za
Capital Harvest Emerging
Farmer Finance
18 Papegaai Street
Stellenbosch
7600
Tel: 021 886 7030
Fax: 021 886 7036
Email: [email protected]
Website: www.capitalharvest.co.za
Retmil Financial Services
(Pty) Ltd
36 Kellner Street
Westdene
Bloemfontein, 9301
Tel: 051 448 8954 Fax: 051 447 1833
Email: [email protected]
Mettle Administrative
Services (Pty) Ltd
Mettle Building
Willie van Schoor Avenue
Bellville
7530
Tel: 011 801 5300 [JHB Office] Tel: 021 915 3300 [ CT Office] Fax: 021 945 2823
Email: [email protected] Website: www.mettle.net
Cape Capital Investment &
Finance Co Ltd
3rd Floor, Mill House Boundary Terraces, Mariendahl Lane, Newlands, 7700
Tel: 021 683 3525 Fax: 021 683 4422
Email: [email protected]
Website: www.capecapital.co.za
CapX Invoice Discounting
(Pty) Ltd
La Fontaine Westerdael Road Durbanville Cape Town
Tel: 021 979 1960 Fax: 021 979 1996
Email: [email protected]
Website: www.capx.co.za
Godisa Supplier Development
Fund
44 Main Street Johannesburg 2001
Tel: 011 638 3716 Fax: 011 638 5321
Email:[email protected]
Enablis Khula Loan Fund and
Khula Enablis Acceleration
Fund
217 Nupen Crescent Palm Office Park, Unit 1-003 Halfway House, Midrand
Tel: 011 234 2526 Email: [email protected] Website:www.enablis.org
Khula–Akwandze Fund Tsb Sugar Mill, Mhlati Farm
Malelane, 1320
Tel: 013 791 1470
Email: [email protected]
Identity Development Fund (
IDF)
Ground Floor Turner and Townsend
House, 21 Fricker Road, Illovo
2196
Tel: 011 772 7900
Email: [email protected]
Website: www.idf.co.za
UTHO Capital
Infrastructure SME
Fund
Lillipark Office Park
Progress House
354 Rivonia Boulevard
Rivonia, 2128
Tel: 011 234 1370
Fax: 011 234 1380
Email: [email protected]
Website: www.utho.co.za
Anglo Khula Mining
Fund
44 Main Street
Johannesburg
2001
Tel: 011 638 3716
Fax: 011 638 5321
Email: [email protected]
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7.8. Example of monitoring report