Monday 27 January, 2020

Sprint Financial introduces Purchase Order Financing Service for SMEs

Sprint Financial CEO, Christopher Barrett said Barrett said the products will assist proprietors with a means of financing their businesses throughout various cycles.

Sprint Financial CEO, Christopher Barrett said Barrett said the products will assist proprietors with a means of financing their businesses throughout various cycles.

Local microfinance outfit, Sprint Financial Services has rolled out a Purchase Order Financing Service for small and medium-sized businesses. 

Purchase Order Financing enables businesses that lack the adequate cash flow to access funds needed to purchase raw materials to fill orders. 

Sprint Financial said the move “heralds in a new era of business financing, with the latest addition to an already diverse suite of innovative loan products, to further their objective of bridging the gap for local entrepreneurs.”

The company is reporting a strong take-up of its latest product, noting that it has processed close to $6 million worth of PO facilities within its brief period of operation.

The service has been received better than anyone could have anticipated and boasted a significant spike in business since the inception of the PO financing service, the company said in a statement. 

The Purchase Order Financing product follows the roll out of its Factoring (or Receivables) Financing Service, which was launched last year.

Only four months into the commencement of this new service and the company also reports that it has virtually doubled its ‘business’ client base and is now eyeing further expansion to grow the portfolio. 

“While promoting our Factoring Service we came across a deficit amongst a large number of business owners who had been overwhelmed with orders they simply could not fill because they were unable to buy the raw materials they needed,” said Sprint CEO, Christopher Barrett.

Barrett said the products will assist proprietors with a means of financing their businesses throughout various cycles.

“What we’ve come up with is a means for you to finance your business from start to finish, we saw the success of Invoice Financing and now we have the other side of the coin with Purchase Order Financing. We’re changing the face of microfinance in Jamaica,” he said.

With the Purchase Order Financing product, the borrower purchases the raw materials to fill their orders.  The loan is repaid once their customer makes payment for the final product.  The facility is processed within 48 hours and repayment is made within 45 days, the company said in a release.

“SMEs have always been one of the most undervalued areas in finance so there has always been very little innovation with the small business in mind, therefore microfinancing is vital," Barrett said.

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