Sprint Financial pursues new model of modern financing

Sprint Financial pursues new model of modern financing

…entity touts its purchase order financing service

Wednesday, December 04, 2019

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Local micro financier, Sprint Financial Services says it is on a mission to combat the woes of today's small and medium-sized enterprises (SMEs) by addressing the call for strategic financing with the initiation of a purchase order financing service.

In a release last week, the micro financing institution (MFI) said that it's moving to herald in a new era of business financing, aimed at diversifying innovative loan products and bridging the gap for local entrepreneurs.

The company said that just one year into its receivables financing service, it has once again hit a home run with its latest offering of purchase order financing.

“Only four months into the commencement of this new service and the company reports that it has virtually doubled its 'business' client base and is now eyeing further expansion to grow the portfolio,” the release reported.

Christopher Barrett, chief executive officer of Sprint, said that it was while promoting its factoring service that the company discovered a deficit among a large number of business owners who were overwhelmed with orders they simply could not fill because they were unable to buy the raw materials they needed.

“What we've come up with is a means for you to finance your business from start to finish, we saw the success of invoice financing and now we have the other side of the coin with purchase order financing. We're changing the face of microfinance, and finance in general, in Jamaica,” he said.

Within the traditional banking system SMEs are often met with firm resistance when it comes to accessing funding. Considering this, Sprint Financial said it thought it best to come forward with an innovative way for clients once deemed 'unfinanceable' to access resources that can virtually save their businesses.

Purchase order financing is essentially where a business lacking adequate cash flow to provide inventory to satisfy customer demands (purchase orders) can access the funds needed to purchase the raw materials to fill its orders. The company purchases the raw materials for the borrower who can now fill their orders and the loan is repaid once their customer makes payment for the final product. Sprint said that as is typical of their loans, the facilities will be processed within 24-48 hours and repayment made within 30-45 days.

“SMEs have always been one of the most undervalued areas in finance so there has always been very little innovation with the small business in mind, therefore microfinancing is vital,” Barrett further commented.

The financial institution has also has reported that the service's reception surpassed all expectations and boasted a significant spike in business since the inception of the service. This as the company said that it has managed to already process some six million dollars' worth of purchasing order facilities within the brief period of operation, having done minimal promotions during what they deemed an initial trial period.

“With the discussions of an impending recession being thrown around products such as these could not have come at a better time for the country's SMEs. More so, microfinancing may just be the 'little engine that could' and become the game-changer in a down-trending economy,” the release further stated.

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