When applying for AIC Loans (Agriculture, Industry/Tourism & Commercial), the submitted information should include:-
- Financial statements of any existing operations for the past three (3) years
- Business Plan
Cost of Freight, Duties, Taxes and Insurance
- Any exemption of duties or taxes should be supported by relevant documents
- Quotations should as far as possible include, separately freight and insurance.
The sponsor should posses the following when applying for an AIC loan:
List of items proposed to be offered as security.
- Copy of Certificate of Incorporation and Memorandum and Articles of Association (for incorporated businesses)
- Statement of Personal Affairs (form and attachments)
- Approved Building Plans, Detailed Estimates signed and dated by the builder
- Certificate of Title, Lease Agreement, etc.
- Copy of letter regarding any fiscal incentives (eg: tax holiday etc)
The sponsor is required to inject a percentage of their own funds into the project.
List all Capital items and how you intend to fund them
Capital items may include but are not limited to:
Projection of Working Capital Requirements
- Sponsor etc.
The working capital should cover the first six months of the project (on a monthly basis).
Business Support Unit
The Development Bank of St. Kitts & Nevis has embarked on a new service specifically geared at helping small businesses within the Federation to develop and enhance their operations. The Business Support Unit is designed to react to the needs of small businesses and provide practical recommendations and solutions to common and chronic problems.
Over the years, the life expectancy of new businesses within the federation has being less than encouraging. Frequently, new businesses are formed and within a few months, and sometimes few years the business closes. The ripple effects of this situation is the loss of jobs and income for the owner and the employees, a change in the livelihood for the families and a loss or reduction of savings. Generally, the closure of any business puts a strain of the country both socially and economically. The Development Bank of St. Kitts & Nevis seeks to resolve some of the problems which causes business failures.
What Causes Businesses To Fail?
The main reason behind business failure is poor management and financial constraints. A loss of market is another critical factor. As small businesses experience a decline in sales volume, this usually results in a reduction of profits. These issues are usually prevalent in today's business world and must be monitored carefully.
What Can We Do?
More often than not, it is easy to detect various problem areas within any business. The next step would be to minimize the risks of potential losses and seek to correct the problems. The Development Bank of St. Kitts & Nevis has within its Support program, a series of workshop sessions intended not only to assist small businesses address these problems, but to educate and assist in avoiding such pitfalls. These sessions would be conducted in a progressive manner including as many relevant aspects from starting a business plan to the actual business operations.
Among the areas covered in our many workshops are:
- Preparing a business plan
- Preparing to go into Business
- Marketing and Market Analysis
- Bookkeeping & Taxation
- Cash Flow Management
- Inventory and Cost Controls
- Customer Relations