Finance Companies - Services

Over the past three decades, finance companies have grown in popularity and in strength. These companies are owned solely or jointly by large, reputable conglomerates with operations across the region. They offer competitive interest rates to depositors and provide financing to consumers and small businesses on a scale that is smaller and often more flexible than that offered by the big banks. Most of them will have limits on the size of loans, but are happy to syndicate large loans with other lenders.

Generally speaking, these companies provide services in two areas: asset financing and corporate loans.

Asset Financing

Car Loans: Finance companies are very active in facilitating the purchase or lease of new and used automobiles, whether for personal or commercial use. Indeed, automobile loans form a significant portion of their loan portfolios.

Equipment Financing: Businesses also use the finance companies for the funding needed to acquire heavy-duty equipment, whether for construction or other purposes.

Office furnishings and fixtures: The finance companies will also lend money to businesses that need to buy or lease office furniture and equipment.

Insurance Premium Financing: This service allows businesses to borrow the money needed to pay annual insurance premiums and pay it back, with interest, in instalments. The typical time-frame for repayment is nine to 10 months.

Property Tax Financing: This service operates on the same principle as insurance premium financing.

Corporate Loans

Some of the finance companies are becoming increasingly active in the area of corporate loans, competing with the banks to finance certain types of projects. For example:

Commercial mortgages: Finance companies will provide funding for both new and expanding projects.

Construction and real estate development: Likewise, these same companies will provide long-term funding for real estate developments, for the construction or expansion of hotels, or the purchase of land.

Factoring: This service enables businesses to sell their receivables to the finance company at a discount. The finance company then collects the full amount. This helps businesses avoid waiting a long time to get paid by its customers.

Here is a list of the non-bank finance companies currently operating in Barbados:

Consolidated Finance Company Limited

Consolidated Finance is a wholly owned subsidiary of Trinidad-based AnsaMcCal Limited, one of the largest publicly listed conglomerates in the Caribbean.

www.consolidated-finance.com

Globe Finance Inc.

Globe Finance is jointly owned by Goddard Enterprises Limited, a large regional conglomerate headquartered in Barbados, and Sagicor Financial, a regional powerhouse in life and non-life insurance, pensions and mutual funds.

www.globefinanceinc.com

Signia Financial Group Inc.

Signia Financial is jointly owned by Grace Kennedy, one of the largest publicly listed conglomerates in Jamaica, Cave Shepherd & Company Limited, one of the best known retail and duty-free companies in Barbados and the East Caribbean, and United Insurance, a large, well established, regional general insurance company based in Barbados.

www.signiafinancial.com