ProCredit Savings and Loan Company has formally opened its second business centre at Kokomlemle in Accra to serve the needs of its Small and Medium Enterprise (SME) clients in Accra.
The Business centre concept of ProCredit would aim at providing tailor-made business solutions to satisfy the financial demands of SMEs in Ghana.
Ms Edwige Takassi General Manager of Procredit Saving and Loans Company said, despite the difficult macro economic environment of 2009, ProCredit has sustained a historical growth and have successfully launched SME strategy, at a time when banks had stopped lending.
She stated that, ProCredit strives to provide responsible products and services with transparent pricing.
Ms Takassi said, ProCredit Ghana’s main focus has been on Micro and Agro lending for a long time.
Adding that ProCredit has started granting an in creased attention to SMES a year ago, capitalizing on years of experience in Ghana and in the rest of ProCredit Group.
She stated that In between the “over finances” very small and very big enterprises, there was still a big financing gap in Ghanaian economy.
“Savings and loans companies generally focus on microfinance activities, while commercial banks usually prefer big and already well established corporate clients” she said.
She added that, a large portion of formal employment in Ghana was provided by SMES and their development boosts economic development.
She stated that, the 2nd Business Center, would receive existing and potential SME client and would also give their well trained Client Relationship Managers the right environment to interact with SME clients and offer them adapted financial solutions
Mr. Samuel Appenteng, vice President the Association of Ghana Industries (AGI) said SMES are usually confronted with problems such as inadequate planning processes, management efficiency related problems and lack of collateral.
“Because of these problems, SMEs are considered a high risk sector, and for that reason, financial institutions impose higher cost of credit on the few that are successful in obtaining credit facilities in the for of higher interest rate “He explained.
He said, some savings and loans companies charged as much as 10% percent per month which when accumulated would be over 100 percent interest rate per annum.
Mr. Appenteng added that, banks are more stringent when appraising credit applications of SMEs hence subjecting them to cumbersome credit procedures.
He noted that, this affects very SMEs who have peculiar needs and sometimes end up with more difficulties accessing credit and further deepening the challenges associated with access to credit.
He said these problems affect the repayment capacity and the situation turns into perpetual cycle of financial difficulties in accessing finance.
He stressed the need for a radical changes in the financial sector to addressed the peculiar financial challenges of the SMEs
He urged financial institutions to go beyond providing credit but support programmes that would help build but support programmes that would help build the capacities at the SMEs to enhance their access to credit.
He congratulated the ProCredit for establishing a business centre for SMEs.
The Business centre concept of ProCredit would aim at providing tailor-made business solutions to satisfy the financial demands of SMEs in Ghana.
Ms Edwige Takassi General Manager of Procredit Saving and Loans Company said, despite the difficult macro economic environment of 2009, ProCredit has sustained a historical growth and have successfully launched SME strategy, at a time when banks had stopped lending.
She stated that, ProCredit strives to provide responsible products and services with transparent pricing.
Ms Takassi said, ProCredit Ghana’s main focus has been on Micro and Agro lending for a long time.
Adding that ProCredit has started granting an in creased attention to SMES a year ago, capitalizing on years of experience in Ghana and in the rest of ProCredit Group.
She stated that In between the “over finances” very small and very big enterprises, there was still a big financing gap in Ghanaian economy.
“Savings and loans companies generally focus on microfinance activities, while commercial banks usually prefer big and already well established corporate clients” she said.
She added that, a large portion of formal employment in Ghana was provided by SMES and their development boosts economic development.
She stated that, the 2nd Business Center, would receive existing and potential SME client and would also give their well trained Client Relationship Managers the right environment to interact with SME clients and offer them adapted financial solutions
Mr. Samuel Appenteng, vice President the Association of Ghana Industries (AGI) said SMES are usually confronted with problems such as inadequate planning processes, management efficiency related problems and lack of collateral.
“Because of these problems, SMEs are considered a high risk sector, and for that reason, financial institutions impose higher cost of credit on the few that are successful in obtaining credit facilities in the for of higher interest rate “He explained.
He said, some savings and loans companies charged as much as 10% percent per month which when accumulated would be over 100 percent interest rate per annum.
Mr. Appenteng added that, banks are more stringent when appraising credit applications of SMEs hence subjecting them to cumbersome credit procedures.
He noted that, this affects very SMEs who have peculiar needs and sometimes end up with more difficulties accessing credit and further deepening the challenges associated with access to credit.
He said these problems affect the repayment capacity and the situation turns into perpetual cycle of financial difficulties in accessing finance.
He stressed the need for a radical changes in the financial sector to addressed the peculiar financial challenges of the SMEs
He urged financial institutions to go beyond providing credit but support programmes that would help build but support programmes that would help build the capacities at the SMEs to enhance their access to credit.
He congratulated the ProCredit for establishing a business centre for SMEs.
