Kina Securities eyeing funding for small businesses

By LEMACH LAVARI
Kina Securities Ltd plans to create a fund for small businesses to access credit, according to chief executive Greg Pawson.
He made this announcement at an event hosted by the Port Moresby Chamber of Commerce and Industry at the Royal Papua Yacht last Thursday. He said the Bank is working with the Australian government and other donors on the concept of a small to medium-sized enterprise (SME) development fund. Pawson said the fund was still in its concept stage.
“It will enable small business owners to go to the fund, present their credentials and their business plan and apply for capital,” he said.
Pawson said having access to funds for small businesses was difficult, mostly because businesses did not have capital to produce as collateral to banks.
He said the banks would not take all the risks and therefore cannot give out loans in such cases.
Pawson said Kina had realised this challenge and as part of its corporate responsibility would create the fund for businesses to access capital.
“The fund is separate from the bank’s business and therefore, there will be no risk on the bank,” he said.
Pawson said only businesses that showed growth and potential could receive loans from the fund.