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yourmoney | ezine

yourmoney | ezine


Scotiabank helps to pioneer a dream: The launch of the 1st MSME Business and Credit Risk programme

“Neither a borrower nor a lender be”. This is the advice that the Shakespearean character, Polonius, gives to his son in the first act of the play Hamlet. In today’s world however, Polonius’s son Laertes would find that fanning his entrepreneurial flame would be rigorous if he lived by his father’s mantra. The sourcing of funds for start-up or expansion of a Micro, Small, and Medium sized enterprise (MSME) is a necessary step if one is not lucky enough to have the Bruce Bowen - President & CEO of money readily available. This Scotia Bank Jamaica process can be an arduous journey and as such a new Jamaican and Caribbean initiative is being launched to facilitate the ease by which MSMEs are able to source funds. The Enterprise-wide Risk Management and Financial Programme (ERMFP) was launched on August 17, 2009 at the Technology Innovation Centre located at the University of Technology, Jamaica. The programme, which is managed by the Institute of Law and Economics and funded by the Inter-American Development Bank (IDB), serves as a credit bureau of sorts that examines MSMEs and gives them a rating that informs potential creditors of the level of risk they are undertaking.

been committed to improving financing in the sector. According to the CEO, the institution had committed a sum of $100 million to the cause. This money is being used under the ScotiaMSME Fund which will be lent to MSMEs to for a range of projects including bolstering of working capital and securing new activity. The rates of the loans are dependent on the rating that the firm receives from the ERMFP and as such should encourage small businesses to improve their financial standing. Mr. Bowen reiterated that while the money had been committed it was by no means a magic wand and that it is still a journey that must be undertaken by today’s entrepreneur.


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The ERMFP is a lot more than just a rating agency as the programme will be used as a pilot to promote the use of sound risk management practices thus making the enterprises more viable and more sustainable. The initiative will serve as the support vehicle that improves MSMEs’ ability to access credit and thus show the importance of these practices to other MSMEs.

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Bruce Bowen, CEO and President of Scotiabank Jamaica, spoke at the launch and was quick to point out the benefits of investing in MSMEs. Mr. Bowen said that while it was now becoming “fashionable” to speak of investment in the small business sector Scotiabank has long

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KIA makes Inroads:

Worldtron CEO Dwight Moore gives reasons for the brand’s success


he calendar reads July, 1997 and Kia, South Korea’s second largest automaker has filed for bankruptcy protection allowing rival company Hyundai to acquire a 51% controlling stake. The scene changes to the year 2000, Hyundai/Kia are now listed as the 11th largest automaker in the world.

2004, almost halfway through the new millennium and Dwight Moore is about to unveil that he is about to become the exclusive Kia dealer in Jamaica. He is among the few that think that he has made a wise move.

conceptualized in the late 1980’s but never acted upon. On entrepreneurship Mr. Moore acknowledged that it was not an easy road but it is the road to self actualization a road where one could rise above misfortune and reach his true potential through hard work and sheer determination.


It is July 2009, Hyundai/Kia are the fourth largest automaker in the world and are posting record profits in the middle of a global recession. Dwight Moore has the right to feel even a little vindicated and as such Your Money sat with the Worldtron CEO and Chairman in our Business Lounge to pick his brain. As stated above, the meteoric rise the market for North Korean vehicles was unlikely to say the least and Mr. Moore shared on what had happened. “To be honest, South Korean Vehicles have surpassed the Japanese in quality and sales, South Korean vehicles have exceeded satisfaction requirements in the US and Europe, Mr. Moore continued, “nothing is static, there has been a migration of technology and technical skills from Japan to South Korea, in fact there is an Audi designer who now works for Hyundai.” When Mr. Moore decided to embark on this route there were many that tried to dissuade him. “There were a lot of naysayers”, he stated, “People don’t like change and they don’t like to be proven wrong even more. Mr. Moore gave an interesting response when asked how he thought Kia had managed to stay relevant in such times as these. “A lot of dealerships in the US and Jamaica were living in the pre-Olint and pre-Madoff era. Companies were stuck in this mode of providing product to people at prices that they couldn’t really afford” stated the Worldtron boss, “as you might notice that we have very little inventory, this is because we focus on demand that is based on rational thinking and our conservation strategy.” Moore, a third generation entrepreneur, said that one major business regret he had was a Western Union-esque operation that he had

yourmoney | ezine


10 Smart Steps to: Find Business Financing by Financially S.M.A.R.T. Services

Question: I’ve decided to establish my own business, but my plans require a significant amount of money for start-up capital and operational expenses. Where can I find the financing I need to get started and keep going until I’m profitable? Answer: One of the major challenges that business persons face is sourcing adequate financing; so you will have to get creative in obtaining money to start or expand a business. Here are some traditional and alternative options for funding: 1. Personal Savings/Income: If you have a regular job in addition to your business, a portion of your current income, plus your accumulated savings, will probably be needed for initial costs. 2. Personal Loans: You can tap into your network of family, friends and business associates to find supporters who are willing to lend you money at reduced interest rates. 3.

Short Term Loans: These bank loans are usually less than one year in length and finance the day-to-day operations of the business. Some types include bridge financing which are interim loans with a short fixed term, overdraft facilities and lines of credit.


Long Term Loans: These are used to finance capital assets such as equipment, land, buildings and machinery. Financing can come from promissory notes, mortgages against property, and pledge of assets.


Supplier Credit: This financing option is where your suppliers agree to extend their payment terms, or offer discounts for early payments. Your business can also get credit if your suppliers provide goods on consignment.


Leasing: Instead of purchasing equipment up front, a leasing company can allow a business to lease with an option to purchase at the end of the term. This can free up capital to be used in other areas, and provides certain tax advantages.


Advanced Payment: Some businesses may be able to negotiate full or part payment in advance for goods or services to be supplied in the future. This allows the business to finance the preparation costs related to the job and will help to reduce nonpayment risks.


Discounting Receivables: Lending agencies can provide money up front against future sales of the business. This is common in companies that utilize credit card sales, as the past sales figures are used as justification for the financing.


Factoring Account Receivables: This involves selling outstanding receivables to a third party for cash. The debt factoring company assumes responsibility for collecting the money which was owed to the business. This option is offered to well-established businesses which trade on credit terms.


Equity Financing: You can offer up shares in your company in exchange for funding from business partners and venture capitalists. These investors will usually play an active role in the operation of your business.

……………………………………………………… Financially S.M.A.R.T. Services is Jamaica’s number one source for practical, down-to-earth and independent answers for all questions relating to personal finance. Get more money smart advice at Email advice@ with comments or questions.


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yourmoney | ezine

M ind Your Business

How to make the best use of trade shows


ur contributing writer, Joe Witte, shared these four tips on how to make the best use of trade shows:


First, define your goals for the show. Are you at the trade show to promote? Find vendors? Develop relationships? Make sure you establish some goals for everyone before the first attendees walk through the door.


Next, practice your pitch on each other. How would a 23 year old without supervision or training do on their pitch if they don’t practice? Most likely, they’d struggle and lose out on key opportunities. Even experienced exhibitors practice!


The next step is big: Don’t sit down. Get out in front of the table and use your promotional items to draw people in and make conversation. The question “Want a yo-yo?” can do wonderful things for initiating a fun conversation.


As you meet prospects and collect business cards, be sure to write on the back of their cards little reminders or “grades” so you can prioritize the business cards you collect after the show. Once you return to your office, start smiling and dialing right away. Follow up with emails and track the results. If you’ve selected and prepared for the right trade show you should develop some excellent partnerships within 3 to 6 months.

With these tips in mind Gail’s Graphic Designs attended the National Association for the Specialty Food Trade’s (NASFT) 55th Summer Fancy Food Show (3-day event) held at the Javitz Center in New York City. The show had 2,300 exhibitors showcasing 140,000 specialty foods and beverages from the U.S. and more than 70 other countries. We observed some of the exhibitors to see if we could find more trade show tips. Based in New York, Gail’s Graphic Designs offers a broad spectrum of creative design and communication solutions to assist in the marketing of your small business. Contact Gail Lewis at or visit Gail’s Graphic Designs at

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August 19, 2009

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