Susan Gordon, Business Reporter
Capital Solutions Limited, an asset management and financial advisory firm, has partnered with United States-based M&T Bank to offer loan financing of US$1 million or more for equipment purchases.
The signing of a memorandum of understanding (MoU) to take place this morning between the two companies in Kingston, will see Capital Solutions selling loans at eight to 11 per cent. The size of the loan suggests that the company will be targeting large businesses only. Compared, the National Export Import Bank of Jamaica sells funds at about 12 per cent.
President and Chief executive Officer for Capital Solutions, William Massias, said the M&T Bank partnership puts it in a position to lend money on the local market.
"We are licensed and M&T bank can do it as they are associated with us," said Massias.
"We are trying to give people an opportunity to do business at interest rates lower than the local market," he said.
The asset management company is targeting companies in construction, banking, radio and television broadcasting for loans.
As a condition, however, entrepreneurs must either import their equipment from the United States; have acquired 50 per cent of the labour and material from the US; or, import U.S.-made equipment.
Massias said although the loan floor was put at US$1 million, Capital Solutions would consider applications for smaller amounts.
He refused to comment on the financial value of the transaction for his company, saying he would await today's formal launch of the loan facility to make the information public.
"We have signed an agreement," he said. "I'd rather not say the per cent until tomorrow."