Dennise Williams, Staff Reporter
JARRETT
JN SMALL Business Loans Limited (JNSBL), has booked a 400 per cent increase in the number of micro and small loans provided since purchasing the Workers Bank micro credit loan portfolio from FINSAC in 2000.
This announcement as well as the launch of a new suite of products was made Wednesday evening at the Devonshire Restaurant at Devon House.
Apparently, JNSBL, a subsidiary of Jamaica National Building Society (JNBS), has found success targeting business people whose financing needs fall under the radar of the traditional commercial banks.
Earl Jarrett, general manager of JNBS, said, "We are aware that the small and micro sector is a driving force in our social and economic development, to generate employment and feelings of self-worth and independence."
He continued, "Our decision to incorporate the Small and Medium Enterprise (SME) sector to our group operations has proven to be a good judgment call. When we began operations in October 2000, we had 2,000 loans valued at $37.9 million. Today, the loan portfolio values more than $177.5 million and consists of 9,403 loans.
VERY PROUD
"We are very proud of this record, which places us as the leading small and micro enterprise loan organisation in Jamaica."
And while the average loan is $19,000, the delinquency ratio is very low, at a range of five to two per cent over a seven to 30-day period.
Interestingly, 73 per cent of the participants are women. Mr. Jarrett comments, "This is what, I suppose, accounts for the delinquency ratio that we have, as women are known for their reliability, particularly regarding financial matters."
Mr. Jarrett noted that, "We have been able to provide employment for hundreds of persons by creating 3,500 jobs and maintaining an additional 9,400. Our services go beyond loan financing to providing important tips on business operations."
In order to further enhance the range of services and market position, JNSBL introduced BizStart.
Loan packages already existing are BizEvents, a seasonal loan package such for events such as Christmas and Mother's Day. And BizGrow, a package geared to existing businesses that wish to improve operations.
However, the BizStart package is geared toward persons who have been in business for less than one year and are likely to have no practical business operating exposure.
Qualified applicants can access a maximum of $30,000 for the first loan and repeat loans in increasing amounts based on the repayment record of the client and the payment capacity of the business.
The interest rate is one per cent per week for a maximum loan length of 30 weeks.
Collateral can be in the form of household appliances and all beneficiaries will be trained by JNSBL on how to operate a successful micro business before loans are
disbursed.
CRIME AFFECTING CLIENTS
Despite the good news, Mr. Jarrett expressed disgust at the current crime situation. "Field officers with clients in volatile areas are unable visit them. We have lost clients who are killed, shot and injured or are unable to operate their businesses efficiently or stay in business, and so cannot repay their loans in a timely manner.
"Without the collaborative effort between the security forces and responsible citizens, then even our best intentions and hard work will all come to nought."
