Over the past three decades, finance companies in Barbados have grown in popularity and in strength. These companies are owned solely or jointly by large, reputable firms with regional operations. Finance companies generally offer competitive interest rates on deposits. The entities principally provide: asset financing and corporate loans.
- Vehicle Loans: Finance companies are very active in facilitating the purchase or lease of new and used vehicles.
- Equipment Financing: Businesses also use finance companies for the funding needed to acquire heavy-duty equipment.
- Office furnishings and fixtures: Finance companies also lend money to businesses that need to buy or lease office furniture, etc.
- Insurance Premium Financing: This service allows businesses to borrow the money needed to pay annual insurance premiums. Principal and interest are repaid periodically over a set time frame (usually 10 months).
- Property Tax Financing: Similar to Insurance Premium Financing, this service allows companies to swap out large lump sum payments for more manageable, smaller, periodic payments.
Finance companies are becoming increasingly active in the area of corporate loans, competing with traditional 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: They also 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 finance companies at a discount (i.e. the implicit interest charge), thereby reducing accounts receivables and improving cash flows.
Major Finance Companies
Following is a list of the major non-bank finance companies currently operating in Barbados:
- Consolidated Finance Company Limited: CFCL is a wholly owned subsidiary of Trinidad-based AnsaMcAl Limited, one of the largest publicly listed conglomerates in the Caribbean. CFCL offers the following products and services:
- Merchant Banking(Bond Issues, Syndicated Loans, Corporate Restructuring and Long Term Capital)
- Foreign Exchange Trading,
- Commercial lending (Mortgages for new and expansion projects, Factoring, Project Financing)
- Commercial Leasing,
- Vehicle Financing,
- Consumer loans,
- Term deposits and other products.
- Globe Finance Inc: Globe Finance is jointly owned by Goddard Enterprises Limited, (a regional conglomerate headquartered in Barbados) and Sagicor Financial (a Barbados based insurance and asset management firm with operations across the Caribbean). Since launching operations in May 1998, Globe Finance Inc. has expanded its range of financial servicesand products to consumers and business, these include:
- Term Deposits,
- Hire Purchase Financing,
- Equipment and Vehicle Leasing,
- Bridging Loans,
- Home Equity Loans,
- Land Purchase Loans, and
- Personal Loans.
- Signia Financial Group Inc: Signia Financial is a financial services company providing bankingand investment services. It is jointly owned by Grace Kennedy (a regional conglomerate based in Jamaica), Cave Shepherd & Company Limited (a retail concern with operations and subsidiaries throughout the Eastern Caribbean) and United Insurance (a regional general insurer). Signia’s products and services include:
- Capital market services (Take Over Bids, Rights Issues , Stock brokerage and Subscription Agent services)
- Deposit products (Consumer and Commercial Products)
- Business Financing (Facilities expansion and Equipment financing, Working Capital, Lease Financing,)
- Foreign Exchange Trading