BUSINESS owners seeking funding for expansion or strategic projects are being urged to consider alternative investment banking options, an area often underutilised by small and medium-size enterprises (SMEs) due to lingering misconceptions.

While investment banking is commonly seen as a space reserved for large corporations, industry experts say many SMEs could qualify for tailored solutions such as private credit but are not pursuing them.

“Many small and medium-size enterprises often assume they’re too small to attract the attention of investment banks, or that they don’t meet the typical criteria. As a result, they shy away from exploring opportunities that could actually help them grow,” said Anna-Leigh Atkinson, assistant vice-president, investment banking, Sygnus Capital, in an interview with the Jamaica Observer.

Many businesses turn to commercial banks first when seeking funding but often encounter limited access to traditional financing. This is due to factors such as risk perception, collateral requirements, and relatively underdeveloped capital markets. Investment banks, however, are increasingly being positioned as an alternative, helping to overcome some of these barriers through more flexible and tailored financial solutions.

“Investment banking partners, they can be strategic partners. They often take a more active role by helping companies navigate complex financial decisions,” she clarified regarding the difference between traditional and investment banking.

According to Atkinson, investment banking offers businesses the flexibility to design financial products or investment opportunities that are tailored specifically to their operations. She noted that this model is emerging as a practical solution for a particular tier of entrepreneurs–those with viable, bankable projects that fall outside the strict parameters of conventional lending. She illustrated the point with an example, stating that a business with a solid foundation and strong product offering may still struggle to secure a bank loan simply because its cash flow is temporarily constrained.

“A common financial constraint for SMEs is insufficient liquidity, frequently caused by an overreliance on receivables that delays cash inflow and limits working capital flexibility,” she explained. “A traditional bank may look at this and say, ‘Oh, you don’t have the liquidity to pay us back right now; it’s just not going to work for us.’ ”

In contrast, investment banking would look at this as an opportunity to assist the clients by understanding exactly what their business structure is, and what their financial needs are, and then structure a product that works exactly for their business line and make it work for them.

”The beauty of investment banking is that it allows you to shift from that norm and step into the realm of many possibilities,” she added.

Investment banks offer services that go beyond loans. These include private credit solutions and alternative capital, which refers to financing solutions provided by non-bank institutions like investment firms to businesses. These solutions may include mezzanine debt, preferred equity, and working capital-based financing — all of which are typically used by companies seeking flexible capital for growth, acquisitions, or major development projects. Investment banking firms can help businesses structure deals that appeal to both institutional investors and private investors or even prepare them for eventual listing on the Jamaica Stock Exchange (JSE), including its Junior Market or the newly announced Micro Stock Exchange set to launch in 2026.

She explained to Sunday Finance that businesses, whether small, medium or large, can benefit from investment banking services, especially now as more start-ups and SMEs are becoming increasingly institutionalised. Many are presenting audited financials, structured business plans and sound governance, which are key elements that make them eligible for support through investment banking channels. Atkinson encourages business owners to connect with firms in the sector as networking also plays a role in their own exposure.

“When you’re looking at a company like Sygnus, you’re looking at other financing options, for example real estate, or asset-backed securities, or receivable financing, or inventory financing. It moves beyond the traditional options of a simple loan or plain-vanilla bond. Instead, the financing becomes very specific and tailored to meet the client’s exact needs,” Atkinson explained to Sunday Finance.

“Explore the options that are out there and don’t allow the misconception of, ‘Oh, it’s just for big global companies,’ to stop you.”