Start-ups, SMEs : OVAMBA Presents Financing Techniques

Accueil / Les cahiers de l'entreprise / Counselling / Start-ups, SMEs : OVAMBA Presents Financing Techniques

Start-ups, SMEs : OVAMBA Presents Financing Techniques

The structure that assists SMEs get assits say getting finances to start or grow a business is a pro

07 nov. 2017 20:36

Most businessmen especially start-ups after conceiving a good project find it difficult to raise funds. Most of them believe that the traditional bank loan is the only means of finance. Experts working closely with the sector have disclosed that the bank is just one of the many financial bodies that businesses can depend on for funding. Other sources include tontine, family and friends that believe in you and institutional or virtual capital investors. It is common to see projects die in an incubator due to lack of funds. Some of them blame their financial handicap on the huge collateral security some financial institutions placed as condition to grab a loan. The Chief Executive Officer of OVAMBA; a structure that assists SMEs get assets to grow their businesses, said there is a lot of cash in Cameroon but the principal hindrance is lack of trust. “The money lenders will have questions like if they were to provide the money to someone else, will they actually use it for the purpose it is intended for? Will it be done in a wise manner? And if the money will come back to them with a return,” .OVAMBA CEO, Marvin R.R Cole analysed. “We are not a money lending institution, but we help grow businesses by providing what they need as assets,” he added. To show how trustworthy a business is, there have to be total transparency between the business owner and money lender. Getting a loan is not as complicated as some think. The bank of SMEs that went operational over two years back, has financed about 1,000 SMEs and start-ups. According to a credible source in ...