President of the Guyana Manufacturing & Services Association (GMSA) Clinton Williams has weighed in on the intensely debated issue of the posture of the commercial banking sector towards lending to the small business sector, essentially contending that the issue of the banks’ posture had to be seen from both perspectives.
Both small business aspirants and owners of fledgling businesses seeking funding for expansion have complained over what some see as the stigmatisation of persons seeking to engage the banks on loans mostly for startup businesses. What has, in recent years been a muted but growing lobby to have banks shift what is regarded as their conservative lending policy, has gravitated to a call in some quarters for local business support bodies to pronounce on the matter.
Last week, in response to a question from the Stabroek Business, Williams said that the concerns by understandably disappointed small business owners and aspirants should not be allowed to overlook the considerations that underpin the lending decisions of the commercial banks. “The question of lending is linked to collaterisation and the asset base of the potential borrower. Those would be factors which the Central Bank would take account of when they visit the banks to audit them,” Williams said.