The JN Group is to deepen its support to small and medium enterprises with additional financing from the Development Bank of Jamaica (DBJ).
JN Bank, the group’s commercial banking arm, is now on-lending funds to the sector from the DBJ at single-digit rates, having recently been designated an approved financial institution (AFI) by the state-owned development bank.
The JN Group has for decades played a major role in the development of the micro and small business sector through its microfinance member company, JN Small Business Loans (JNSBL), and has had a sustained relationship with the DBJ over the years.
Explaining how JN Bank’s reach will differ from JNSBL’s, Ryan Parkes, chief of business banking at JN Bank, says historically, there is a specific cohort of businesses with financial needs, which the DBJ model, coupled with JN Bank’s expertise and service, are best able to cater to.
“Small and medium-sized enterprises (SMEs) have greater difficulty accessing financing than typical large companies. These are those customers who fall short of coming to the table with the requisite collateral, which is a major concern for several businesses,” Parkes explained.
He added that it is much more difficult for SMEs to get loans because they are more informal and sometimes don’t have the required documents needed to access financing.