FashCash introduces Bizloan
Fast Cash is now providing financing to businesses wanting cash fast.
"Today with the launch of our new product, FastCash Biz, we are offering the latest installment to our product offering - in direct response to demand from the micro and small business owner. In order words the self-employed businessman/businesswoman," said Michael Archibald, the chief operations officer of Fashcash at a launching ceremony at the Fort Young Hotel on Thursday.
Archibald added: "This product, in traditional FastCash fashion, is unsecured but it is priced based on the risk of the business. We lend to the principal director of the company .The company must be in business for two years or more and we use the financial dynamics of the business to determine risk and ability to repay.
"Companies must therefore provide at least two complete years of financial statements. The maximum amount for these loans is $50,000 and loans are granted in tranches of between 10k to 50k for durations of 30, 90, and 180 days. The pricing is 2.5% per month plus a processing fee of 3% on the 30 days product which we also finance. In short on a 50k loan for thirty days the total cost to the borrower is $1,662.
He said that the facility is not an entrepreneurial product, not for starting a business or start-up businesses and not for acquiring fixed assets.
"This is a working capital facility for the small business which has cash flow locked in for short periods of time but have expenditure that does not have the patience to wait on that cash flow", Archibald said. "It is therefore designed to provide short term cash flow assistance and support. In order to qualify customers must prove that their business have the ability to generate sufficient cash flows within the duration of the loan to qualify for this facility".
This facility was available from last Friday at all FastCash branches in Dominica and takes about three days or less for approval, Archibald said.
Bizloan has been launched in Antigua, St. Kitts and St. Lucia.
Businessman Robert Tonge founded FastCash in Dominica in 2004.