The National Export-Import Bank of Jamaica (EXIM) is encouraging business operators affected by Hurricane Melissa, particularly small and medium-sized enterprises (SMEs), to take advantage of its loan facilities.
Manager of Loan Origination and Business Development, Hopeton Nicholson, said that the Bank continues to provide traditional lending to assist its clients affected by the hurricane in their recovery efforts.
“Our mandate is to drive economic growth as well as to promote job creation. In doing so, EXIM continues to fund companies to meet that specific mandate,” he said, while addressing the recent Small Business Association of Jamaica (SBAJ) ‘Export for Success’ membership meeting at the Bank’s Hope Road location in Kingston.
He noted that in the aftermath of the hurricane, the EXIM Bank offered a six-month moratorium, from November to April, “so that our businesses can recover to get time to retool and rebuild”.
Focus was placed on SMEs in the productive sector.
“Full moratorium on principal and interest was offered, so for six months, they (businesses) were not making payments. Payments would have recommenced at the end of April,” Mr. Nicholson indicated.
“What we also did for customers, who needed some level of support to recover in terms of capital expenditure is asset-based lending, where we focused on collateral rather than financial/credit health, and making the process seamless to give those clients access to funding to recover from the hurricane,” he added.
EXIM Bank provides traditional loan products focused on export development, trade financing, and SME growth, often with lower collateral requirements than commercial banks.
These include short-term working capital (up to 180 days), medium-term loans for SME expansion, and foreign currency lines of credit for raw material importation.
Among the products is the E-Commerce Funder, which is used to develop, upgrade or expand e-commerce infrastructure. The loan limit is $1 million to $5 million at five per cent interest rate (fixed) and the loan term is five years.
There is also the EXIM Express, which is a short-term financing facility that enables clients to access funds from their receivables.
Product features include a 75 per cent loan limit on the value of receivables for a maximum of 90 days. The loan limit is $2 million to $25 million, with a seven-day processing time and competitive interest rates. No collateral or financial statement is needed.
The Solar Energy Loan is available to SMEs looking to reduce energy costs, improve efficiency and improve their cashflow. It provides a maximum of 85 per cent financing with a loan limit of $5 million to $50 million and 7.50 per cent interest (fixed). The maximum loan term is seven years.
Solar equipment is accepted as collateral up to a maximum of 85 per cent of total installation costs.
For exporters, the Bank offers a Modernisation Fund, Trade Credit Insurance (TCI), and the Insurance Policy Discounting Facility.
The Modernisation Fund is for the acquisition of capital for retooling, refurbishing and upgrading facilities and equipment. The loan limit is $5 million to $90 million with a loan term of up to five years.
The Insurance Policy Discounting facility provides crucial collateral support that enables businesses to access working capital, while the TCI coverage is designed to protect exporters against non-payment by covering commercial and political risks on gross invoice values.
“The insurance protection is for receivables. Whatever the gross invoices sent are to your buyer, those receivables are [insured]. It covers both commercial and political coverage,” Mr. Nicholson pointed out.
By: Rochelle Williams, JIS
