John Myers Jr., Business Reporter

A new financial entity offering big returns on local and foreign-currency investments, as well as expensive but easy-to-get loans, has emerged in Jamaica's growing high-interest market.

However, unlike the other entities which refer to themselves as 'investment clubs', Partner's Financial and Investments Limited (PFI) says it is a legally registered institution that offers services such as venture-capital financing, micro- business financing, corporate financing, special-projects financing, personal loans, entrepreneurship training and a business-incubation programme.

Investment not a service

The company's president and CEO, Gary Pusey, says investment is not a service offered to PFI clients, but done privately.

Pusey said he and partner George Elliott are principals in the business.

PFI had a formal launch Thursday night.

Finance Minister Audley Shaw, who was noted as a featured speaker, was not in attendance. PFI said he sent his apologies the day before.

The financial firm is offering 10 per cent a month on minimum investments of $100,000 or US$1,000 and, according to a representative of the company, the interest rate is set to increase to 12 per cent a month by December.

On Friday, Pusey clarified to Sunday Business that the service was not offered to PFI clients, but directed at a specific group, including friends.

"This is not something that we offer to the public. It is not one of the products that we are offering or registered to offer," he said.

A private equity firm

The company describes itself as "a private equity firm committed to the economic growth of the Jamaican economy", as stated in its brochure.

A loans officer at PFI explained that unsecured loans up to a $100,000 were offered at an interest rate of 35 per cent add-on, but said there were lower rates for funds borrowed for three months and under.

The company claims to have $100 million on the books in loans, saying it has been in existence for the past three years, ostensibly as a moneylender.

PFI also claims a near 99 per cent compliance rate on loan repayments.

"A special feature of the personal loans service is that they are customised to suit persons with or without traditional collateral," PFI noted in one of its brochures.

However, loans above a $100,000 require collateral, the loans officer said.

There is also a special product for employed persons with the employee salary advance loans package in which PFI lends up to $40,000. Clients repay at a rate of $120 on every $1,000 borrowed, subject to satisfying certain requirements.

At the official opening of PFI's registered office at 10A Chelsea Avenue in New Kingston on Thursday, Pusey said the equity firm's objective is to grow human capital, hence the move to offer more loans without collateral.

According to him, applicants would qualify based on character reference, track record, commitment to managing the business, and talent.

The entertainment business is one area, he said, that PFI would be targeting to lend funds, saying the sector was neglected by the traditional lending institutions.

PFI has agreed to sign popular gospel entertainer Prodigal Son to promote the company in its advertising campaigns.

Pusey, who described himself as a venture capitalist, said PFI would in return, be funding the launch of the entertainer's next album, due shortly, paying him a monthly salary, and providing him with a company car.

john.myers@gleanerjm.com