Growth & Jobs | Access to credit a game changer for small business owners

For many entrepreneurs launching a new venture or looking to expand an existing one, accessing credit has proven to be a game changer, enabling them to build successful business operations.

According to Tabra-Kay Lindsay, sales relationship specialist at JN Bank Small Business Loans (JNBSBL), obtaining credit has created opportunities for many micro and small business operators across Jamaica by providing the financial support needed to grow and sustain their businesses.

“When entrepreneurs are able to secure funding, it enables them to strengthen their operations and manage cash flow more effectively. It means they can replenish stock, pay suppliers and workers, take care of unexpected expenses, and cover overhead costs such as utilities,” she explained.

Lindsay added that financial support helps businesses remain operational during challenging periods and supports long-term profitability.

“Credit also gives entrepreneurs the flexibility to respond to opportunities, such as expanding their service offerings, purchasing goods at discounted prices, fulfilling large customer orders and hiring additional staff during peak periods. With ease of access to funding, they can act quickly and strategically, seizing opportunities that they might otherwise would have missed due to limited cash flow,” Lindsay explained.

She pointed out that JN Bank Small Business Loans was the first private financial institution of its kind in Jamaica to focus specifically on the needs of microentrepreneurs, a group often underserved by traditional lenders.

“Over the past three decades, many financial institutions primarily catered to large or well-established businesses. Small-scale operators, such as vendors, barbers, and shopkeepers, often lacked the collateral or credit history required by traditional banks. As a result, they faced significant barriers to accessing the financial support needed to grow or stabilise their operations.”

Lindsay noted that by recognising the untapped potential within the microenterprise sector and tailoring its offerings to meet their specific needs, JNBSBL filled a critical gap in the financial landscape.

“Through smaller loan amounts and flexible terms, we make it possible for many microentrepreneurs, who would have otherwise been overlooked by traditional lenders to grow their businesses and contribute meaningfully to the Jamaican economy,” she said.

BORROWING RESPONSIBLY

Lindsay noted that the impact of JNBSBL has been deep and far-reaching.

“For the past 25 years, we have contributed to the creation and sustenance of more than 200,000 jobs across the island,” she disclosed. “Entrepreneurs can access loans as low as $10,000 and up to $1.5 million for business and personal purposes. In addition, persons can obtain an auto loan of up to $4 million to purchase a vehicle for use in the business.”

She emphasised that the loan application process is straightforward.

“Applicants need only to provide their TRN, valid photo ID, a passport-sized photo, proof of recent business transactions such as invoices or bank statements and a character reference from a justice of the peace, minister of religion, attorney-at-law, or school principal. Once all documents are submitted, processing typically takes just two to three business days.”

Lindsay is encouraging entrepreneurs to exercise prudence and careful planning when taking out a loan. She advises business owners to have a clear purpose for the funds and ensure they have the capacity to repay within the agreed terms.

“While access to credit can significantly improve business operations, it should not be viewed as a quick fix for deeper financial issues. Borrowing more than you actually need can create long-term financial strain. Every dollar borrowed comes with a repayment obligation, often with interest, and larger loan amounts mean higher monthly payments. This can put pressure on your cash flow and reduce the flexibility you need to manage day-to-day business expenses,” she said.

“Over-borrowing can also damage your credit profile if you struggle to keep up with repayments. Missed or late payments affect your credit score and may limit your ability to secure financing in the future when you truly need it,” she stressed.

She advised that entrepreneurs take the time to carefully assess how much money is required to meet their specific goal and request only that amount.

“By borrowing responsibly, you can stay on top of your financial obligations,” she maintains.