New Jamaican Small Business Loan Company Might Fit Here
Given the challenges that continue to hamper access to borrowing for local micro and small businesses in an effort to strengthen existing but underfunded business foundations, the model used by the well-known Jamaican lending platform under the name Esther Finance Ltd. try here.
A Caribbean Business Report (CBR) article on Monday described the peer-to-peer (p2p) platform approach used by the private company as an initiative to “humanize lending,” an approach that can be particularly useful. relevant here. in Guyana, where efforts by small businesses to access finance can sometimes compete with “tooth pulling” in terms of the magnitude of the resulting difficulty.
P2P lending, according to the CBR story, is “the practice of facilitating loans to individuals or businesses through online services that connect lenders and borrowers.” Jamaican entrepreneur Javette Nixon is the CEO of Esther Finance and the company’s main concern, according to the CBR report, is to improve and accelerate innovative Caribbean businesses in the tech and consumer sectors. . The report says the company also wants to “build an ecosystem that promotes people-centric solutions and financial literacy.” The company, according to the CBR report, “also wants to create an ecosystem that promotes people-centric solutions and financial education.
A key element of the Esther Finance model that may be of interest to existing and emerging small businesses in Guyana is the role it plays in creating a comfort zone for borrowers, which removes the procedures and constraints associated with the access to traditional loan financing. sector, in particular the banking sector. “With our peer-to-peer lending initiative, we will provide a platform where users can lend and borrow money from their peers through Eve – a secure, intelligent and contract-aware platform, designed for facilitate end-to-end peer-to-peer. ready, ”Nixon reportedly said.
In addition, the CEO of the company points out that the concept “allows lenders to obtain higher returns compared to savings and investment products offered by banks, while borrowers can borrow money. at lower interest rates ”.
In order to use the service as a borrower or lender, each user will need to create a profile by registering with the platform and uploading the documentation for verification by an account manager assigned to each user’s profile. After checking the documents, each user receives a loan / borrowing limit assigned to their profile. The user can choose to borrow or lend up to this limit as a starting transaction. However, this limit is doubled upon successful settlement of each transaction. Lenders are responsible for assessing the good faith of potential borrowers by reviewing a loan application form and subsequently indicating the desired loan terms to fund the transaction. Subsequently, an Esther Finance account manager will engage the two parties in order to facilitate the completion of the transaction.
“The security of the platform is of the utmost importance to the Esther Finance team, so not only must all users provide proof of identification and other verification information, but they must also be recommended by a former user of our services. This is to minimize the risk of wrongdoing, ”CBR said, citing Nixon.
The scarcity of options to access finance for micro and small business development, coupled with the borrowing requirements that potential borrowers must meet, is widely seen as one of the main obstacles to small business growth in Guyana.