Small and medium-sized business owners in the Caribbean aiming to expand have received advice to take several necessary steps to ensure a seamless loan application process.
On this week’s episode of ECCB Connects, Arleta Rate Mitchel, Senior Manager of Retail Banking at the Bank of Saint Lucia Limited, shared essential guidelines to help business owners secure financing.
She underscored the need for businesses to be properly registered, have an active operating account, and keep thorough financial records as crucial requirements for applying for a loan.
Mitchel stressed the value of maintaining accurate records of income and expenses, as these allow business owners to monitor their daily operations closely.
The BOSL official added that proper records not only help businesses understand their financial position but are essential for gaining the trust of lending institutions.
She also emphasised that submitting a detailed business plan and a cash flow statement supporting financial projections is vital.
According to Mitchel, the absence of financial documents is one of the most common deficiencies when small business owners apply for loans.
“These documents are very important for lending institutions when deciding if a business qualifies for a loan,” she explained.
The President of the Small Business Association in Saint Lucia, Lucianna Johnny, echoed Mitchel’s recommendations and offered additional insights.
She remarked that applying for business loans in Saint Lucia is not overly complicated, thanks to government facilitation.
“There are no serious challenges when it comes to registration or application, as the costs are kept low and the process is straightforward,” Johnny stated. She disclosed that the government support aims to lower the barriers for small businesses seeking funding.”
Regarding financial management, the association’s president urged business owners to keep business finances strictly separate from personal funds to avoid confusion and ensure clarity in financial records.
In addition, Johnny highlighted the importance of implementing a structured and consistent approach to recording all transactions.
To further support small business owners, her association occasionally offers training sessions for its members, equipping them with skills to navigate financial management and lending requirements more effectively.
Overall, the guidance the BOSL and the Small Business Association provide aims to empower Saint Lucia’s entrepreneurs to better position their businesses for growth by following best practices in financial management and loan application preparation.
