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EXIM Encourages Local Entities to Access a Receivables Financing Loan

Many local businesses are likely to know how hard it is to gain or maintain cash flow to fund the development of the business or meet those income deficiencies. There may come a time when customary small business financing, for example, loans and credit, will be constrained or not in reach to keep production going. In business, "cash is king" and this is why the EXIM Bank continuously seeks to develop creative and innovative products and services to address the needs of the SME sector to promote sustainable businesses that can contribute to Jamaica’s economic growth and prosperity.

         This has heralded the "roll out" of the new Receivables Financing Loan as the Bank perpetuates its thrust to boost the productive capacities of non-traditional sectors such as Tourism, Manufacturing, Agro-processing, Mining, the Tourism Industry, Information Communications Technology and the Creative Industries. This Receivables Financing Loan allows customers to access up to J$60 million or US$ equivalent per transaction at affordable interest rates and may be utilized to secure raw material or goods while the business awaits payments. It also facilitates the on-going access to funds as soon as each loan is repaid and offers flexible collateral requirements for borrowers.

       Promoting sustainable growth and development for Jamaica’s productive sector is at the heart of what the EXIM Bank does and the increasing difficulties that local entrepreneurs continue to face in trying to keep their businesses afloat, calls for targeted solutions that are tailored to offset these challenges. The issue of limited cash flow continues to affect local businesses and this problem is compounded with the customary delays in getting their receivables paid in a reasonable time by customers. EXIM Bank’s Receivables Financing Loan, which is now available to local SMEs, is a significant step in enabling these companies to bridge this gap and stay competitive. 

        EXIM Bank’s Receivables Financing Loan is available to business entities registered in Jamaica. Loans are offered on a short or medium term basis, with short-term loans being offered for a maximum period of 120 days. It may be used to finance the following: working capital, pre and post shipment transactions, equipment acquisition and refurbishing or upgrading of facilities. Each transaction attracts a small processing fee which is payable upon approval of the facility.

The introduction of this loan financing facility, which addresses the practical and day- to- day needs of SMEs, is expected to pave the way for accelerated growth in this very important sector of the economy.

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