Overwhelming SME loan application – Post Courier
BY MELISHA YAFOI
Bank South Pacific agents were inundated with applications from SMEs long before the K100 million aid announcement was made.
Group chief executive Robin Fleming said the bank’s Smart Business team is inundated with inquiries and many of those inquiries are currently going through the credit process.
Mr Fleming said SMEs that applied should expect a loan to be approved overnight.
However, he said there was a good backlog of transactions for SME center staff and BSP credit staff would continue to assess and expect more to be approved in the coming weeks. .
“We are confident that with government support for the SME program and funding, the EUR 100 million will be able to provide access to a number of Papua New Guinea SMEs and lower financing. cost that will support and complement our existing smart business products. ,” he said.
Mr. Fleming stressed that delinquency on loans is not just a lack of access to finance.
He said that large companies except government and public entities have all contributed to SMEs not being able to pay their bills.
“Some of the reasons why those who have failed to meet BSP loan repayments include payment terms of up to 90 days and 120 days and this includes some large companies asking small businesses for a discount on a job entirely. paid.
Another delay tactic, including printing invoices and sending invoices once twice three times, ”he said.
“I think that it is incumbent on all multinational companies and on the contrary to have a policy or support product for SMEs.
The government can help, the banks can help. Cash flow is generated by businesses paying SMEs on time when their services are delivered, ”he added.