Branch manager of the National Commercial Bank (NCB) Dave Wilson is adamant that SMEs seeking finance from lending institutions must be willing to invest in their own businesses prior to believing that investors will.

Wilson’s comment was in response to concerns raised by start-up fashion industry companies of the difficulty in accessing finance from financial institutions to begin operations at the Designers Guild Seminar held at the University of Technology last Saturday.

According to the group, financial institutions are critical in the growth of their businesses but have somewhat deprived the sector of its potential from the limited resources disbursed to them.

The group added that accessing a loan from the institutions would require collateral such as a house or car, which they are not in possession of and would also force them to seek a loan to secure documentation for the business loan.

“Put your money where your mouth is,” Wilson, manager of the NCB branch at Matilda’s Corner in Kingston, told the group of designers in addressing the bank’s expectations of young entrepreneurs. “Young entrepreneurs are prone to saying that the banks are not willing to lend to small projects, but that’s not the case. If you really believe that your business can grow then show me.”

The Designers Guild Seminar which was held under the theme “International Retail Strategy for Your Business” is an initiative to encourage and support sustainable development of the local fashion industry. The group benefited from presentations from executive producer of Mission Catwalk and fashion entrepreneur Keneea Linton-George and international industry gurus Guillermo Lechuga Munoz, Shannan Catlett, Alexandra d’Archangelo and Mercedes Gonzalez.

“Too many times persons come into the financial institution seeking loans and are not serious about the business that they want us to invest in,” Wilson said.

He added that contrary to the belief of micro and small operators, financial institutions are willing to assist, but have to do so under secure circumstances based on its obligation to clients. The basic requirements of obtaining a loan include the creation of a profile of your business, an idea of your financial status, including up to 24 months cash flow projections, and ensuring the right staff is employed to manage the business, according to Wilson.

Additionally, he stated that small businesses will find it easier to receive loans once the business is registered, compliant in its payment of taxes and continuously strive to improve its product offerings.

“All of that ties to a solid business plan. You have to build confidence in that financial partner and we understand that what we do is a risk, but we are willing to take that risk if you show us that you can do it,” Wilson said.