The Inter-American Development Bank (IDB) has approved funding for a financing project for Micro, Small and Medium sized Enterprises (MSMEs) in Trinidad and Tobago to easily and rapidly access credit to expand their operations.

The IDB Lab, the innovation lab of the IDB Group has provided a US$1 million loan to Term Finance SME TT Limited (SME TT) to support its innovative digital lending model, which provides loans to excluded micro, small, and medium enterprises in Trinidad and Tobago and later in other Caribbean countries.

This financing, combined with resources from their local banking partners, First Citizens Bank will enable MSMEs in the twin island republic to more easily and rapidly access the credit they need to expand their operations and sales, and thus sustain the crucial jobs they generate, mainly among vulnerable and low-income populations.

The loan will focus on expanding and perfecting the online, customer-centric business model for SME lending, piloted by SME TT since January 2020. Once consolidated in Trinidad and Tobago, it is expected that SME TT will subsequently begin lending operations in Guyana, Jamaica, Barbados, and Saint Lucia.

Ease in accessing information about the financing facility

In as little as 5 minutes, MSMEs can visit the company’s website (www.sme.tt), gather the relevant information surrounding interest rates, loan size, loan term, repayment terms, and submit their initial application, all without any need to physically visit the company offices. Loan applications to SME TT can be made 24 hours per day and 7 days per week.

Having made the initial online application, MSMEs are contacted within one business day to complete the submission of the required documentation for the creditworthiness assessment. The digitization of the application process significantly reduces the required time and resource allocation, which is often a major hurdle in MSME access to finance.

Over the next few years, SME TT expects to extend loans of over US$45 million to more than 1,200 companies in the region, 50% of which are expected to be extended to enterprises that are founded or operated by women.

About SME TT

Term Finance SME TT is a joint venture between Term Finance Holdings Limited (TFHL) and 3Stone Limited. The company’s mission is to fill the gap that exists in innovative, convenient and responsible access to finance for micro, small and medium business in Trinidad and Tobago as an almost exclusively digital process.

SME TT evaluates all clients through an evaluation of both qualitative and quantitative criteria that is client-centric and guided by a commitment to lending in a responsive and fit-for-purpose manner.