HFC Bank launches Business Loan Centre

Accra, March 29, GNA - HFC Bank Ghana Limited on Wednesday launched a new banking product to assist small and medium enterprises (SMEs) in their business development and deepen their participation in the economy.

The service, dubbed: HFC Bank Business Loan Centre, is to deliver banking services to match the needs of SMEs in terms of business advisory, financial and accounting services as well as entrepreneurial and management skills training.

Under the service, fieldsmen would go into the central business districts of the cities and to small and medium scale entrepreneurs with limited finance, and "engage them, talk to them, share ideas and come back to the office and design suitable products for them". Mr Charles Ofori-Acquah, Head of Corporate Banking, told the Ghana News Agency (GNA) that the Bank wanted to bring SME banking very close to the customer.

"A small-scale business operator can walk into our branch at Okaishie in Accra or any of our branches soon to be opened for business counselling.

"We will give further advice and refer our clients to our partner consultants for business needs assessment, marketing, workshops, audit and capacity building services."

Mr Asare Akuffo, Managing Director of the Bank, said an improvement in the SMEs sector, which dominates and cuts across commerce, mining, transportation and manufacturing, would impact significantly on the country's development objectives.

He said empowering entrepreneurs, particularly those in the SME sector, was a tried and tested approach to the economic development because other countries, especially in Asia that walked that path, had achieved tremendous success.

Mr Akuffo observed that over 70 per cent of businesses, SMEs and micro businesses had not yet received the support and financial assistance that banks and other financial institutions might want to offer because of poor accounting records, secrecy over business matters and inability to provide suitable security to the banks.

"The HFC approach to SME banking will focus on providing players in the sector with financial and managerial skills, information on marketing and access to markets and acceptable corporate governance standards."

Mr Akuffo said credit to the sector would be measured and focused to ensure that it delivered the required results. 28 March 07