Central Bank of Nigeria
In furtherance of its empowerment of micro, small and medium enterprises (MSME) in the real sector of the Nigerian economy, RegCharles Finance and Capital Limited has injected a long term investment of $130,000 (N20.8 million) into Sarvil Limited, using a mixture of debt and micro-equity to expand their business, upgrade their production facilities, and improve the distribution networks and facilities.
Sarvil Limited (formerly Sarvil Enterprises), commenced business October 14, 2011 and was incorporated April 28, 2012. Sarvil started a business relationship with RegCharles Finance and Capital Limited in August 2012 and since then has demonstrated a strong capacity to managing funds and improving their access to markets and opportunities.
Being a small and growing business, the company was struggling to survive amidst harsh business environment and lack of infrastructure supposed to enhance their competitiveness in the challenging market.
Speaking at the handover ceremony of the improved facilities, MD/CEO of RegCharles Finance and Capital, Peter Damian Mbama, explained the rationale and justification behind the decision to invest in the business. “Hygienic water production is a viable business in Nigeria and can generate huge returns in excess of 30 per cent per month. The market is colossal amidst the dearth of affordable and clean water in the country”.
Mbama went further to state that as a non banking financial institution licensed by the Central Bank of Nigeria (CBN), RegCharles is at the forefront of empowering entrepreneurs and business owners in the MSME segment to achieve their goals in life.
To him, MSMEs remain at the pivot of the survival of any economy in the world. They remain the highest employers of labour and contribute over 50 per cent GDP besides the huge employment opportunities available. He explained that Sarvil is one out of over 70 entrepreneurs that have benefitted from the company’s business model.
RegCharles Finance and Capital Limited focuses on financing and empowering Small and Medium Scale Enterprises (SMEs) in various sectors of the economy as well as Agriculture and Agro Allied Businesses in Nigeria. It is also renowned for its Social and Impact Investment capacity focusing on MSMEs.
In this, RegCharles assesses the social, economic and environmental impact of transactions and investments before funding any business. By providing tailored financial solutions and advisory services through an array of products and services, its target focus remains to reduce unemployment by empowering men, women and youths with great potentials in helping to grow the economy through employment generation and productivity.
When asked how business the business model evolves in the creation of values, Damian explained that prior to funding any entrepreneur various training programmes were designed, to be inculcated into the ideas and practices of the business owner, which lasts for a minimum of three days depending on the peculiarities of the transaction.
“Every entrepreneur is meant pass through pre-funding trainings in capacity development designed to imbibe them with the required skills to run a sustainable business. After we have advanced funds to the business owner, he will be enrolled into some post funding training models involving mentorship programmes and incubation.
“RegCharles strives to protect the funds provided to it by clients as well as handle the risks associated with its investments by being of the business. The company discusses that the bane of entrepreneurship is fund diversion and insincerity hence it strives to mitigate the occurrence by being part of the business in totality.
“Its experience has demonstrated that collateral requirements do not guarantee repayment. It considers cash flow and character as the key to the success of the business and the protection of the investments. Hence it has been able to design its risk management models to accommodate these.
The benefits of RegCharles' involvement in the businesses of its clients cannot be over-emphasised at this time. It has a way of determining challenges in any business. Hence it targets to assist its customers (the MSMEs) by giving them access to market; Access to business information; access to capital and finance; trainings on Entrepreneurship, vocational skills, financial management and basic book keeping skills; access to Information Technology outsourcing, Business Development strategies, Product development strategies, leadership and organisational development.
Acknowledging the value already created in his business the MD/CEO of Sarvil Limited, Mr. Olusegun Adegunle, explained that the partnership with RegCharles Finance and Capital Limited had made tremendous impact in his business.
“Following the surge in our growth and the challenges we were facing meeting up with demand we approached almost all the banks in Nigeria for financial support to no avail. Most of the reasons adduced were lack of structure; lack of collateral; no audited financial statements; level of education and numerous reasons. The only bank that agreed to assist failed to understand the problems and proffer the right solutions. I approached RegCharles and they swung into action. “First they conducted a proper due diligence of our company; they proceeded with the restructuring exercise and created a proper structure for us; RegCharles through their outsourcing company recruited and organised our employees; an accountant was recruited for us and an audit firm was engaged for yearly audit to enable us have the audited financials which made banks to run away from us. It did not end there. RegCharles prepared out 5 year strategic plan and business plan which was the fulcrum of our success till date. We passed through some training with them and today they have funded us for growth and expansion.
“With what we have observed, this is the company to focus on. They are actually empowering small and growing businesses in reality. I advise the entire public and government to support them by lending funds to them in various forms for proper deployment to our growth and empowerment,” Adegunle said.
RegCharles Finance and Capital Limited stimulates an improved business environment that will enable the MSMEs thrive successfully, improve access to markets, business skills and information, improve the MSME financial Infrastructure, creation of new opportunities through innovation, support the creation of an environment through which SMEs will have access to debt, FDI and portfolio investment flows can be enhanced, provide the required advisory services clients in areas like business valuations, corporate strategy, investment appraisals, evaluating, structuring, negotiating monitoring, and closing transactions, M&A, portfolio restructuring, fund raising and capacity development etc in order to create financially stable entities for the SMEs.
Its portfolio is to support micro, small and medium enterprises, poor famers, and its counterparts to improve their capacity and build the growth strategy with sustainability for the long- term socio-economic development and job creation in Africa. This is social and impact investing in action!