Susan Gordon, Staff Reporter
SMALL AND medium size enterprises (SMEs) are expected to have easier and broader access to credit and become more competitive in conducting business. To ensure this happens, JAMPRO launched its corporate financial broker (CFB) unit at its headquarters in New Kingston last week.
The CFB unit which can be likened to a public financial consultant firm for small and medium size businesses aims to provide assistance to them in areas of sourcing financing and providing technical assistance at a subsidised cost.
The CFB is a new division created by JAMPRO and is funded by the European Union (EU).
COLLATERAL REQUIREMENTS
"SMEs have a challenge accessing finance because of the collateral requirements, inadequate business planning, inadequate disclosure and lack of knowledge of available sources of finance, and deficiencies in financial records," said executive director of services at JAMPRO, Lisa Bell.
She said the FCB would interface with banks and other lending institutions on behalf of the SMEs and encourage them to reduce collateral requirements.
At the same time, she told participants at the launch that the unit would help SMEs improve their financial records in the area of bank statements and cash flows reviews.
"More than 50 per cent of small businesses do not apply any form of planning or record keeping," said chairman of the Small Business Association of Jamaica, Adolph Brown, in endorsing the CFB launch by JAMPRO.
He said this practice leads to high failure rates of SMEs as financial institutions refuse to grant them loans without these criteria.
The CFB will provide business analysis services, market strategies reviews, financial planning, accounting assistance, technical strategies review and sourcing of financing for these companies.
ACCESSING THE UNIT
All companies already participating in the EU Private Sector Development Programme will have access to the services the unit provide.
However, companies which are legally registered with majority Jamaican ownership, have less than 200 employees and $80 million and below in asset may access the unit.
Mrs. Bell said even a one-man corporation stands to benefit from the services of the CFB unit.
PRIVATE SECTOR ENTITY
"Small businesses can now spend less time in loan applications and improve their ability to raise capital and their business performance," she added.
The unit hopes to impact at least 90 local firms with its service and will transition into a private sector entity in its fourth year of operation.
Some members of the banking and financial sector have today signed several memorandums of understanding, in partnership with the CFB unit.
