Looking to improve on the $99 million in financing to which it has helped to connect micro, small and medium-sized enterprises (MSMEs) in 2023, the Jamaica Business Development Corporation (JBDC) recently signed a memorandum of understanding (MOU) with microcredit institution Access Financial, as it looks to unlock more capital for entrepreneurs.

CEO of the JBDC Valerie Veira said her agency, in taking the lead to develop mutually beneficial relationships between financiers and small businesses, will through the latest partnership provide training to Access’ staff to help them better understand non-traditional business lines and the foundations of business development while the financing entity, on the other hand, work to tailor sector specific financing products for players in the ecosystem.

Acting as a net broker, the JBDC, Veira said, will go wherever the resources are as it pulls together opportunities to ensure that its clients benefit from the best opportunities.

“JBDC serves as a broker on both sides of partnerships. We talk to our clients and we prep them for the relationship and take them to a stage where they understand what is required and how they prepare for making a link to the other side,” she stated.

“Our mandate is to develop the MSME sector and our group spreads right up to the ones who are exporting and accelerating. It means that the sector has a mixed bag of needs and JBDC cannot do it alone,” the CEO added.

With access to affordable and appropriate financing remaining a long-standing problem affecting the growth and sustainable development of the MSME sector, the latest intervention she believes will further help these smaller players to break down barriers as they navigate challenges around the availability of appropriate and adequate collateral for borrowing, higher-than-normal interest rates and the inability of the some credit agencies to manage their nuanced financing needs.

CEO of Access Financial Hugh Campbell, in welcoming the partnership, said his company for its part will work to bring affordable financing options for members of the largely underserved sector.

“The MSME sector, despite their contributions to the formal economy, remains largely underserved by traditional providers. JBDC knows all too well the issues entrepreneurs face with developing and growing their businesses, often having limited options to affordable financing. Through this latest partnership, we will, however, work with them to deliver more meaningful solutions in this area,” he said.

Campbell, in further pointing out that Access Financial clients who have a capacity building gap or challenges accessing financing needed to scale and grow their business, will likewise be referred to the JBDC to receive the necessary business development support.

“The areas of focus from which they will benefit spans assessment, training and provision in business development, management and support; pre-financial services and guidance; research & marketing as well as product development support,” he noted.

A provider of personal and business loans, Access Financial, up to end of its last reported third quarter period, secured nine-month loan income of over $1.6 billion as the company continued to benefit from a growing loan portfolio, despite the perpetuation of financial market challenges.

Total assets, up to the end of the period, was valued at over $7 billion.

In offering loans as high as $1.5 million to MSMEs across the agriculture, manufacturing, trading and service sectors, the micro financing institution said funds can be used for working capital support or the purchase of fixed assets. These loans are allowed a three years repayment period.

“Loans and advances for the group as at the end of the period was $5.66 billion — an improvement of 18 per cent year over year due to the higher levels of demand for consumer loans,” the directors said in a summary of the company’s performance.