Small and medium enterprises often find themselves on the verge of losing opportunities due to lack of credits. It is for this reason that Barclays bank found it necessary to come up with a product that would help SMEs to get credits easily to fill the value chain gaps that they have. The product is named enterprise supply development program. It will help SMEs in Kenya to get affordable and reliable credits for their supply chain needs.
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Barclays noted that there was a market gap that needed to be filled urgently is SMEs were to remain competitive. As a result, several business owners have been relieved by the product. They can easily borrow and return money to the bank in a way they could not before. What’s more, the loans are disbursed in a very short time. SMEs can easily keep up with their supplies without delays or failure.
SMEs play a significant role in the development of an economy. In Kenya for example, SMEs contribute to 49% economic growth through job creation and revenue generation. However, due to the lack of reliable financial help, most SMEs find it hard to thrive and eventually close down. Upon realization of how significant SMEs are to the economy, Barclays saw it fit to invent an innovative product to support and grow them.
About the enterprise supply development program
Speaking during the launch of the product ms. Karen Kambi who is head of ESD in Barclays said. “Our ESD proposition is, therefore, working towards addressing the funding gap in this value chain. Since we launched, we have laid a strong foundation for the proposition.”
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We can confidently say that we are now ready to build further on it. By offering it to more clients and as time goes by, we shall be availing more resources to support the product. With this product, we are unlocking a funding solution for our SMEs. We are helping them to remain afloat and in business.”
Advantages of the ESD program
Ms. Kambi stated that the product is unique in its own way. It comes with some advantages over other types of loans. Among the advantages of the enterprise supply development program include fast processing times, quick disbursement of the loan and competitive interest rates.
The loan product can be accessed through the web platform where a company should first create a portfolio and present a six months bank history of the company.
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With Karen Kambi during the launch of enterprise supply development program was James Agin, the corporate and investment director of Barclay bank. He said, “Enterprise supply development program is a key driver of the Corporate and Investment Banking Africa client centricity strategy and one of the key contributors to Absa Group’s Shared Growth strategy which provides that as we prosper, the communities where we operate in must also prosper as well.”
“That is the reason our banking solutions are targeted at the entire ecosystems of our customers. We view them more holistically and therefore aim to provide solutions not only for them as corporate organizations but also to their employees, suppliers and other partners, out of the understanding that the prosperity of these organizations is dependent on the ability of these key constituents to deliver,” he added.
The main purpose of enterprise supply development program
The enterprise supply development program will provide SMEs with quick unsecured loans that will be instrumental. They will act as a bridge to any working capital challenges that the SME may be facing. The loans will help them to sustain their current operations and over time, they will ultimately expand their businesses.
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Barclays bank emphasized that the enterprise supply development program was anchored by these factors:
- Easy access to finance: This targets SMEs by providing them with quick unsecured loans that will help the SMEs to sustain their current operations successfully.
- Enterprise development: This will be aimed at providing capacity building forums for SMEs apart from the financial Help.
- Access to markets: this will help create an online marketplace for suppliers