KINGSTON, Jamaica – Disbursing some 31,000 loans valued at more than $1.2 billion, during the 2006/2007 financial year, JN Small Business Loans (JNSBL) Limited continued to lead micro and small business financing organisations in Jamaica and the Caribbean. During that period, the company also maintained its impressive record of a low 1.5% portfolio at risk over 30 days, an achievement which betters the international best practice of 5%.
The robust growth and success of the small business lending agency is fueled by its approach to lending, and the close relationship maintained with its clients. According to Frank Whylie, JNSBL General Manager, the company sustains its impressive record because of the recognition that an untraditional approach is required for financing high-risk micro or small business operations, and there is great need to focus on developing the business of clients.
“Last year, some 17,000 jobs were created or maintained through JNSBL loans. These jobs account for the main source of income in a substantial number of households, so the success of these entrepreneurs is critical to the Jamaican economy,” Mr. Whylie said.
In light of this, Mr. Whylie stated that the organisation tailors its products to ensure ease of qualification and re-payment.
The JNSBL General Manager pointed out that unlike traditional financial institutions, JNSBL loan products rely heavily on the character of the borrower and accepts nontraditional forms of collateral in a bid to help micro business operators to qualify for the much-needed funding.
“At start-up, and even during the first years of business, entrepreneurs often have difficulty providing assets accepted as collateral by traditional lending institutions, so they have limited options for financing. We recognised this challenge and designed our loan products to increase the chances of qualifying for the loan. We also maintain a close relationship with the client to ensure the loan is properly serviced,” he said.
“We are also cognizant of the importance of helping the entrepreneur to do more than repay the loan; we help them to operate the business. So, to complement the products we offer, and nurture business growth for the entrepreneur, we provide services that help them to streamline their operations and position it for success,” Mr. Whylie stated.
He disclosed that, the JNSBL commissioned the Jamaica Business Development Centre (JBDC), to develop a micro and small business training programme for its clients. The programme introduces participants to record keeping, basic accounting, marketing, as well as business management skills.
“In the last fiscal year we trained more than 1,000 micro and small business operators. Some 78% of these business owners were women,” Mr. Whylie revealed.
He asserted that the success of this unique approach to lending is evidenced by the high level of repeat clients and the impressive repayment rate.
The work of some of these clients will be on show on Monday, November 26, when the JNSBL hosts it Annual Board Tour, this time, in the parish of St. James. Mr. Whylie explained that the Tour will visit five clients in the craft, manufacturing, and services industries, who own businesses in Montego Bay.
“We will highlight the success of a restaurateur, day care and school operator, hair dresser, and a craft manufacturer,” Mr. Whylie said, “These entrepreneurs reflect the gamut of businesses which we finance.”
The Hon. Clarence Nelson, Custos of St. James; Mrs Pauline Reid, President of the Montego Bay Chamber of Commerce; Mr. Mark Kerr-Jarrett; Most Reverend Charles Dufour; and Mr. Ian Hayles will be among members of the Montego Bay community who will participate in the day’s event.
