Business News Mon, 14 Oct 2019

Financial institutions must relax credit requirements for SME's

Financial institutions will still succeed if they relax the stringent requirement for accessing credit, Chief Business Development Officer of Advans Savings and Loans, Giorgi Samadashvili, has said.

Access to credit has been one of the biggest challenges of most small and medium scale enterprises. Apart from the prohibitive interest rates, many financial institutions have a cumbersome process SMEs must fulfill in order to access credit.

While financial institutions have often justified the lengthy paperwork, Georgi Samadashvili, speaking at a breakfast meeting in Accra said the financial institutions must begin to see things from SMEs’ perspective.

“In our opinion, the financial institution needs to be ready to work together with the clients. Not being too rigid in terms of the requirements specified or documentation specifically on the collateral.

Start with what they have, provide them the necessary financial education so that they advance their business and basically grow together with them to allow them to be more ready to receive loans from various financial institutions.

This is our approach; our mission is to provide tailored financial services which means that we tailor the service to each single SME that approaches us whether or not this is repayment schedule whether or not.

This is the additional service they need aside from the loan. So, we tailor each and everything we do to every specific SME that approaches us,” he said at a forum organised for SMEs.

The forum was attended by participants from at least fifty-six institutions.

Chief Executive Officer of Advans Ghana Olivier Bailly-Bechet said the presence of participants was the evidence that even in the midst of the recent financial and banking crisis, customers still regarded them as a reliable financial partner.

Mr. Bailly-Bechet said their goal was not to give out loans that would end up collapsing businesses but more importantly, they are in to help businesses grow the right way and at the right pace.

“Advans Ghana takes note of the type of business you operate, your strengths and what we know would suit you, so that you can pay back and not necessarily compromise on other vital aspects of your business and family,” he said.

Source: www.citibusinessnews.com