Making a business work in Jamaica comes with a lot of challenges, but for Christians who foray into this arena, in addition to being proactive and prepared as advised by Natalee Bailey-Harrison, Branch Manager, Personal & Business Banking at the CIBC First Caribbean Bank, Mandeville Branch, they must also be prayerful.
In the latest edition of Freedom Talks, hosted by the Freedom Come Rain Newspaper, Bailey-Harrison shared some insights gained over the years, including when she served as a relationship business banking manager. She made some suggestions which are not just useful to Christians but entrepreneurs in general.
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Some business owners, she pointed out, that find themselves in danger of defaulting on their loans, instead of running to their banker and trying to work something out, ignore or decline calls from the banks.
“Ironically, this is the time when you need to run to your bank, not your bank running to you. You should be knocking at the door before the default to say to them, ‘I want to have an open and honest conversation with you’ because they can provide you with financial guidance. It’s an essential step owners should never overlook,” she encouraged.
She said business owners should embrace having conversations with their bankers, as this will yield options that will prevent their businesses from defaulting. While it may not be a popular culture, Bailey-Harrison is encouraging business owners that it is a practice that they should “lean into.”
“To have open conversations, this is where the bank will offer options such as looking at your loan, extending your loan and giving you a smaller loan plan, or sending it to a revolving facility. This is how we provide guidance before you default,” she advised.
Expanding on the ‘two Ps’, she stressed that business owners should be proactive in terms of reducing the risk of defaulting. This they can do by engaging in proper financial planning and practicing robust financial forecasting and budgeting.
“Sometimes they need to just anticipate financial challenges and put contingency plans in place,” she noted.
Sharing on the financial climate, Bailey-Harrison points out that business owners who diversify their income stream are on the right path, as this she finds reduces dependency on a single revenue source and provides a safety net in case of unexpected expenditure.
Sharing insights on why some owners are unsuccessful in securing loans to expand their businesses, she chalks it up to the challenges faced by not just her bank but other financial institutions.
“Some of the challenges we have when we really want to assist business clients are documentation and integrity. In terms of the financial statements, customers under report their information at times, and that affects their ability to get a loan with us,” she stressed.
From observation, she informed that what is often reported and what the business actually made shows disparity; hence, she explained that proper record-keeping is essential.