May 8—Bank of Africa (Uganda) Limited is providing convenience to customers in the small medium sized enterprises (SMEs) category by speedily processing advances.
“SMEs constitute over 90% of the private sector and employ over 2.5 million people. There is need to have business finance loans for a working capital within 48 hours,” Bernard Robinson Magulu, the BOA Executive Director BOA said during a forum for SMEs in Kampala.
BOA provides others variety of products like unsecured bid guarantees of up to UGX200 million ($55,000), an unsecured invoice discounting facility of up to UGX200 million and asset finance loans for business machinery, trucks and equipment which can also be processed in 48 hours.
Claver Serumaga, the General Manager for Business Development, said SME business forums as an avenue of engagement with Uganda Registration Services Bureau and the Uganda Insurers Association in 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 loan sharks (money lenders) when they need to access loans, which are risky and carry extortionate interest rates. BOA is offering a better, safer, regulated alternative that can change the financial picture,” Serumaga said.
He told invited participants that very few businesses the world over can expand without taking a leap and securing a loan. “It is vital that the financial sector is not only aware of this fact, but are actively seeking to provide solutions which work in our local context,” he said.
One participant, Glades Nakintu told 256BN, “I am glad this SME product will work for the needs and aspirations which underpin the needs of our business. These loan sharks are tough to deal with.”