By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMIAN small and medium-sized companies could access millions of dollars in working capital, and be able to purchase US-made goods, through the US Export-Import Bank's (Eximbank) loan programs, its registered broker telling Tribune Business yesterday that most local companies were unable to grow faster because they lack cash flow.

Luis Castillo, president of International Realty Investors, Global Trade Financing and Global Trade Insurance, a registered broker for the US Eximbank, told Tribune Business that the latter regularly approves loans for working capital and raw materials, yet many companies in the Caribbean are not informed on how simple and feasible it is to obtain such credit.

Mr Castillo said: "The purpose of Eximbank is to provide financing to countries overseas for them to buy US products. We want to be there to provide equipment under good terms and good financing through the programmes of the US government, as well as raw materials.

"All the products that the Bahamas wants to start producing in terms of consumables, and also drinks, which are mostly purchased from other countries, the technology and equipment the Bahamas needs can be purchased from the United States."

The US Embassy in Nassau is co-sponsoring two 'International Trade and Financing Seminars' to be hosted by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) and the Grand Bahama Chamber of Commerce. The seminars will be held at the Sheraton Nassau Resort on Cable Beach in Nassau May 22-23 and the Pelican Bay Resort at Lucaya in Freeport May 24-25.

Mr Castillo added: "We want to create the awareness that this programme exists, so that we can contribute for Bahamian companies to have a better cash flow.

"Right now, Bahamian companies cannot grow faster because they do not have the cash flow. Right now, they have to pay for the raw materials they want to get."

Mr Castillo said Bahamian companies will be told of short and medium-term loans available from the Eximbank at the conference.

"We are going to explain how the short and medium-term programme works, and we are going to talk a little bit about how project financing works. We manage interest rates from 4 per cent to 7 per cent per year," Mr Castillo said.

"The idea is to get the small and medium-sized businesses on board because that's what's going to make the Bahamas come out and be independent in different industries."

Mr Castillo added that the seminar will instruct companies on how to use the newest Eximbank programmes and learn how to obtain a loan, as well as schedule private appointments to analyse their financial statements and get pre-approved analysis of their purchasing power.

Last year, the Eximbank approved $32.7 billion in loans, with the bulk going to small and medium-sized businesses, often with little documentation. Eximbank facilitates loans to businesses to import US-made products through guarantees, which allow the buyer to obtain financing benefits with terms similar to those of US-businesses.