Barbados launches factoring programme
The Barbados government has launched a BDS$15mn (US$7.5mn) trade receivables liquidity facility (TRLF) to speed up payments to government contractors.
Barbados prime minister Freundel Stuart explains that the TRLF represents a "hand up to those in the small business sector in this country and provides a platform for the growth of their companies unfettered by unnecessary cash flow problems".
He continues: "This policy, therefore, presents a huge opportunity for small businesses, many of which have considered themselves locked out by bureaucratic entanglements and lack of access to information. Those which have been fortunate to secure contracts in the past, have also had to wait for long periods before being paid, creating serious cash flow problems for the businesses.”
Through this scheme, central government agencies can enter into trading transactions with small businesses knowing that payments will be made within seven days.
Highlighting the importance of the small business sector to the future development of the island's economy, Freundel Stuart says that these enterprises must be positioned to contribute meaningfully to job creation and to the country's capacity and capability to earn foreign exchange.
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