Accra, Oct. 8, GNA – GCB Bank has urged micro, small and medium-sized enterprises (MSMEs) to formalise their businesses to improve access to financing.
The Bank said formal registration, proper record-keeping and adequate documentation would strengthen MSMEs’ ability to meet lenders’ requirements and access credit.
Mr Cedric McAddy, Head of Micro and Small Enterprises at GCB Bank, made the call after the Bank’s MSME Caravan Clinic in Accra, held under the theme: “MSME Unlocked: Powering Ghanaian Businesses for Sustainable Growth.”
He identified poor record-keeping and inadequate documentation as major challenges limiting MSMEs’ access to financing from formal financial institutions.
Mr McAddy said GCB was helping businesses address those challenges through digital banking solutions that enabled them to collect and track customer payments.
He said the Bank was using such financial data to expand access to unsecured financing for eligible MSMEs.
“Today, we are giving unsecured loans of up to one million cedis to our MSMEs without collateral, without the need for annual statements, and without requiring them to maintain large amounts in their accounts. It is all based on turnover,” he said.
The initiative was helping to bridge the gap between information traditionally required by financial institutions and the operational realities of smaller businesses.
Mr McAddy cited GCB’s SoftPOS solution, which enabled businesses to receive mobile money and card payments using their phones, as well as stock-management tools.
He said the Bank’s mobile application enabled MSMEs to access their accounts and conduct banking transactions without visiting branches or using laptops and tablets.
“We allow our MSMEs to access and operate their accounts through our mobile app. Using their phones, MSMEs are able to carry out all transactions required by banks without the need for laptops or tablets and without having to visit branches,” he said.
Mr McAddy said that the Bank provided physical collection and point-of-sale services, while enabling businesses to open accounts and apply for loans online.
He said the interventions formed part of GCB’s efforts to help MSMEs build resilient and sustainable businesses.
Mr McAddy encouraged entrepreneurs with viable business ideas to approach the Bank for support.
GNA
Edited by Kenneth Sackey