HFC Bank has announced a $2m initiative to bolster support for small and medium enterprises (SMEs) in Fiji, in partnership with BLP Business Link Pacific (BLP).
This initiative is part of a strategic alliance under DT Global New Zealand, with sponsorship from the New Zealand Government’s Ministry of Foreign Affairs and Trade.
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The programme aims to enhance SMEs’ access to finance and provide comprehensive business support.
Under the partnership, BLP has committed to provide $2m to support SME loans, which will be processed through HFC Bank.
HFC Bank stated that the joint effort includes a 50% underwriting guarantee provided by BLP to cover potential bad debts.
To further meet the market demands, the loan limit for customers has been increased from $50,000 to $200,000 for each customer.
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By GlobalDataBLP will also contribute up to $20,000 as equity per customer, acknowledging the difficulties SMEs encounter in providing equity.
HFC Bank has already allocated $1.1m in loans to the SME sector since the partnership began, reflecting the entities’ efforts to improve small businesses’ financial access.
The “Loan Equity Guarantee” introduced by BLP provides up to $20,000 to cover equity shortfalls, ensuring SME loans meet the minimum equity requirement of 10%.
Fiji Deputy Prime Minister Manoa noted that this is the first private sector partnership with BLP and demonstrates a suitable model to assist Fijian SMEs.
Manoa said: “This initiative sits well in terms of the government against potential bad debts. In response to ambitions to develop a comprehensive to market needs, the product offering MSME ecosystem in Fiji and push the share of GDP to 30% in the next ten years.”
Besides, the support extends beyond financial assistance, with Business Assistance Fiji offering help to SMEs in preparing business cash flow forecasts, business plans, financial statements, and proposals at no cost.
HFC Bank CEO Rakesh Ram said: “Being Fiji’s own Bank, we at HFC Bank are committed to providing innovative financial solutions that help small and medium business operators realise their dreams.”
