Bank of Africa Uganda Limited has launched a small and medium enterprises (SMEs) scheme to help small business access finance.
The scheme provides for a variety of products like unsecured bid guarantee of up to sh200 million, unsecured invoice discounting facility of up to sh200 million and asset finance loan for business machinery, trucks and equipment in 48 hours.
Launching the scheme at Hotel Africana, the Executive Director of Bank of Africa Bernard Robinson Magulu said the business financing scheme will provide an opportunity for young entrepreneurs to explore and identify collaborative solutions in the current economic environment
“Bank of Africa has identified the need to have business finance loan for a working capital in 48 hours” adding that“ this platform is a straightforward access to funding which is the backbone of our economy”, said Magulu.
Bank Of Africa, General Manager Business Development, Claver Serumage explained that SME Business forum acts as an avenue of engagement with Uganda Registration Services Bureau and The Uganda Insurers Association with respect to the importance of registering businesses and how to mitigate risks through insurance.
“A lack of collateral means that SMEs are left with no choice but to resort to unscrupulous money lenders when they need to access loans, which are risky and have extortionate interest rates,” stated Mr. Claver, adding that “By B.O.A offering a better, safer, regulated alternative, we know that we can change the financial picture for thousands of SMEs across Uganda.”
Claver further disclosed that very few businesses can expand without taking a leap and securing a loan. It is vital that the financial sectors is not only aware of this fact but are actively seeking to provide solutions which work in our local context.
Bank Of Africa- Uganda Limited is a multinational bank that servers about 182,906 customers in Uganda.
SMEs constitute over 90% of the private sector and employ over 2.5 million people which is a large sector to explore since huge chunk of revenue and workforce are left out to traditional financing available from lenders.