Jamaican microfinance outlet Dolla Financial Services has expanded to Guyana, establishing a local subsidiary there, which is poised for rapid expansion.

Dolla Financial, which is a part of the FirstRock Capital Holdings group, has set up Dolla Financial Services (Guyana), which has just commenced operations. Dolla Financial Services Guyana is the first private microfinance outlet to have operations in the country.

Dolla Financial Services’ move to Guyana is in alignment with the company’s plan to bring financial inclusion to the people of Guyana. The company is investing one million US dollars into the operations to include capital expenditure and loanable funds.

Dolla Financial Group CEO Kadeen Mairs is excited about the company’s Caribbean expansion saying, “the reception received from Guyana’s private and public sectors is truly motivating and we are now ready to play our part in the economic growth of Guyana by providing access to credit.”

Speaking in an exclusive interview with Jamaica Observer , Mairs explained that the target market is the micro, small and medium-sized enterprises (MSMEs), where the loan ceiling is from a low of US$100 or the Guyanese equivalent to a high of US$50,000 or the Guyanese equivalent for medium enterprises.

Pushing receivables financing

The loan ceiling for micro and small loans is up to US$5,000 or the Guyanese equivalent. Mairs told Sunday Finance that his company is pushing its receivables financing product given the vast need for such financing given the fact that many MSME are providing goods and services to Guyana’s booming oil and gas industry and are in desperate need for receivables financing.

“The receivables financing market in Guyana is under-penetrated and this is a large market for the company, which it is already penetrating.” Mairs added. Dolla Financial Guyana is also targeting the market for short-term loans for personal expenses.

According to the Dolla Financial Group CEO, “This is a huge market for us to penetrate as well and we definitely see how we can assist persons, who are in a regular nine to five job that need short-term financing for personal expenses through salary deduction.” He declared that Dolla Financial is looking to fill this void in Guyana through its local subsidiary.

More capital to be raised in the future for Guyanese expansion

Mairs advised Sunday Finance that the recent successful J$200 million bond raise by Dolla Financial Group will see some J$75 million being poured into the Guyanese subsidiary, where the plans being rolled out is for a rapid expansion in 2022, which will also see another capital raise to continue the expansion.

In commenting on the move, chairman of Dolla Guyana, Christopher Yeung said, “we are pleased to announce the opening of Dolla Guyana and we are equally optimistic about the growth potential”.