GCB Bank commits to SME growth

One of Ghana’s largest banks, GCB Bank, has shown its commitment to supporting small- and medium-sized businesses with the launch of the ‘GCB SME Loans’ suite.

The launch is an attestation to a promise the Bank made last year to roll out new loan products and services for SMEs.

“This move by GCB is in recognition of the importance of readily available financing to micro, small and medium-sized enterprises to promote sustainable economic growth and employment,” Mr Samuel Sarpong, Acting Managing Director of GCB Bank, said at the launch.

He said nearly half of all small businesses identify the lack of access to financing as a major barrier to growth. He added that this is because SMEs may not have collateral and adequate financial information to support their sourcing of funds from the financial market.

SMEs have become a formidable force in the economy and they are estimated to account for 80% of all businesses in Ghana. SMEs also bring vibrancy, innovation, and a broader choice to the marketplace. SMEs employ a sizable per cent of our labour force.

Mr Sarpong noted that most of the capital SMEs own is in movable assets, such as inventory, receivables or equipment making it difficult for them to access funds.

“GCB acknowledges the importance of the SME sector to national development and sustainability and with the introduction of this special loan scheme for SMEs, GCB aims to offer support to the nerve-centre of the national economy,” Mr Sarpong stated.

Explaining what the GCB SME Loan entails, Mrs Doris Wunu, Head – Consumer Banking at GCB Bank said the SME Loan is a 5-pack Loan Suite through which the Bank will support its SME customers with timely short to medium credit facilities to the tune of GH?100,000.

“This one is targeted at the heartbeat of the economy. GCB has had most of its clients moving to other banks because we have not really paid attention to the SME sector. Now we are ready to give loans of up to GH?100,000 and in some situations with no collateral,” Mrs Wunu said.

She said the facilities are Bridge Loan, Term Loan, Overdraft, Contingent Liability, and Line of Credit.