Where to look for Business Financing in Barbados
Business Financing in Barbados
Looking for business funding to start or expand your business in Barbados?
We have put together a list of funding sources which may be able to help you get started in securing a business loan.
If you are working and starting a business on the side, your personal income may be able to help you secure your initial startup loan.
From our experience, Fund Access is a good starting point to secure a small business loan in Barbados. It is a developmental financing agency for Micro, Small and Medium Enterprises in Barbados. It has a range of different business loans starting from $1000BDS – $150,000BDS. The process is fairly simple but can take anywhere from 3 weeks to several months for loan approval/disbursement. Feedback from successful candidates said they regularly called, followed up and continually satisfied the needs of the loan officers requests.
The City of Bridgetown Co-operative Credit Union offers business & personal loans which maybe suitable for Startup businesses. In order apply for these loans, you must first become a member of the credit union and meet the basic requirements in order to be eligible. Visit COB Loans for more information.
The BIDC is an agency of the Barbados Government with the goal to increase exports and employment through new investment, diversification and the support of competitive businesses. The Government has enacted several pieces of legislation to encourage investment and provides a number of tax incentives from which you may stand to benefit. Find more information on BIDC Financing.
Local Commercial Banks
Most commercial banks will lend you money based on collateral for a secured loan OR for an unsecured business loan if have registered business or incorporated company with an active bank account with a minimum of 2 years history. You will need to present a proposal of what you need the funding for along with your financials for the business.
Carilend is the first Peer to Peer lending site in the Caribbean aiming to bring together Borrowers and Lenders to give a better deal and a better experience to both. They match Borrowers who need a loan with investors who want to be Lenders. By cutting out the middleman, they cut out the costs and pass on these savings in the form of better rates to both Borrowers and Lenders. They provide a convenient, simple, flexible and fair way to get a loan to satisfy your needs. Apply online in minutes for loans from 1 to 5 years. Loans are currently up to B$20,000 and will increase to B$50,000 over time. Find more information on Carilend.
Family & Friends
I left this for last but your should approach these options first! ONLY explore these options if you can take the same level of professional business approach when asking family members and friends for loans. You need to provide them with the same business repayment/share plan as you would to any other commercial institution. Be clear on terms and the length of time needed. Be sure to sign an agreement with your points clearly set out and both parties understand fully.
I hope this article helps someone! Be sure to read or next blog post before Leasing business spaces in Barbados
For information on registering your business/company, Please visit: CORPORATE AFFAIRS AND INTELLECTUAL PROPERTY OFFICE