MANUFACTURERS now have more financing options than many may realise and are being encouraged to look beyond traditional bank loans to scale their operations.

The recommendation came during the Jamaica Manufacturers and Exporters Association’s (JMEA) Manufacturing 360° conference held Thursday at AC Kingston Hotel in St Andrew, where it was revealed that uptake of alternative financing, such as private equity and capital markets, remains particularly low among players in the sector.

“It’s perceived as giving up control, so they might be reserved in giving up,” said Kerine Golding, assistant vice-president, alternatives and fund management at NCB Capital Markets Limited. “That [mindset] remains particularly among manufacturers.”

Golding explained that many businesses resist raising capital through equity because of the desire to retain full control over their companies. However, she argued that partial ownership does not have to come at the cost of autonomy.

“Giving up a bit of your company can help to grow your company in terms of scaling quickly,” she said.

The Jamaica Stock Exchange was also highlighted as a viable option for raising capital, particularly in cases where banks either deny financing or offer loans with interest rates that are too high for businesses to manage.

Golding shared that over the past year, NCB Capital Markets has helped companies raise more than $1.8 billion. Combined with the banking side, that figure is significantly higher. She noted that while traditional banks often face lending constraints, the capital markets provide more flexibility through tailored solutions, including debt, bonds, and equity. This may come in the form of private equity or support in preparing companies to go public.

In encouraging entrepreneurs to look beyond bonds and loans, GK Capital Management, the investment and capital arm of GraceKennedy Group, also has its own type of alternative financing, including investment commitments upwards of $200 million in private equity to help grow companies.

Kareem Tomlinson, managing director of GK Capital Management Limited, added that the firm is also acting as a mediator between entrepreneurs and angel investors through its established networks. According to Tomlinson, the aim of GK Capital is to take businesses from “grass to glass”, with support provided to early stage businesses by GK Financial’s angel investor partners.

The conference also explored loan solutions tailored to the needs of manufacturers. Sagicor Bank, through its business banking division, shared details of a dedicated manufacturing and agro-processing loan product, with interest rates starting at 6.5 per cent, repayment terms of up to 12 years, and loan amounts of up to $50 million.

“We have conversations with our clients; we try to understand their business and try to provide solutions that match their business,” explained Nicola Speid, manager, SME business banking at Sagicor.

She said that the bank customises loan terms to suit the unique workflow and structure of each manufacturer’s business.

In addition to traditional and alternative capital market options, manufacturers looking to implement greener technologies now have access to dedicated funding through First Global Bank’s green financing product. Offered in collaboration with the Development Bank of Jamaica (DBJ), Key Insurance, and several energy providers, the product is designed to support manufacturers across financing, installation, and insurance. Through DBJ, clients can also benefit from extended guarantor facilities to help secure loans, especially where collateral may be limited.

“There is an energy audit grant of $200,000 as we seek to minimise that upfront cost to our manufacturers,” said Rashina Cope-Malcolm, corporate banking manager at First Global Bank.

She explained that 80 per cent of the grant is provided upon acceptance of the audit report, with 20 per cent available upfront for mobilisation. After loan disbursement, clients may also access an energy audit rebate of up to $300,000. Key Insurance will provide additional support, offering coverage for installations as part of the overall financing package. Loans are available at interest rates as low as 7.5 per cent in US dollars and 8.5 per cent in Jamaican dollars.

“These are very competitive rates and on the lower end of interest rates currently,” boasts Cope-Malcolm.

To reduce the upfront investment required, First Global will offer up to 90 per cent financing, with manufacturers able to borrow up to $400 million or US$2.5 million and access repayment terms of up to 24 months’ moratorium to help ease cash flow pressures.