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Erudite AfricaCenter of Excellence
← Financial Management for SMEs: Strategic Financial Management

Financing SMEs

Module 03 / 6 · 70 min

Match each need to the right source of money: bank loans, equity investment, capital goods leasing and development finance, and compare their true cost.

In this module you will learn to

  • Build a sources and uses plan that matches long-term assets with long-term funding
  • Compare bank loan offers on their effective cost, not only the headline rate
  • Explain how equity investment works, including valuation, dilution and key term sheet terms
  • Use capital goods leasing under Proclamation No. 103/1998 as amended by No. 807/2013, and compare lease and loan options
  • Identify development finance options and what they require from an SME

Built on

  • Erudite Africa training curriculum: Financial Management for SMEs, Level 3 Advanced, Strategic Financial Management (October 2026)
  • Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025; VAT Proclamation No. 1341/2024 and VAT Registration Directive No. 1104/2025; Federal Tax Administration Proclamation No. 983/2016 as amended by No. 1434/2026
  • Capital Goods Leasing Business Proclamation No. 103/1998 as amended by No. 807/2013; Investment Proclamation No. 1180/2020; Investment Incentive Regulation No. 586/2026
  • Commercial Code Proclamation No. 1243/2021 and Financial Reporting Proclamation No. 847/2014 (IFRS for SMEs, AABE filing)
  • NBE Directives No. NBE/INT/13/2026 (interest rates), SBB/95/2025 (capital adequacy), FXD/01/2024 and FXD/05/2026 (foreign exchange)
  • Published good practice on financial modeling, quality of earnings review and the balanced scorecard (Kaplan and Norton)

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.