PanJam Investment Limited has expanded its interests recently to include a 20 percent minority stake in a micro financing company, Term Finance Jamaica Limited. The micro financing company is a subsidiary of Term Finance Holding Limited, which has an 80 percent stake in the company. Term Finance operates in six other Caribbean countries in addition to Costa Rica.
But what makes Term Finance Jamaica Limited stand out when there are many other similar micro financing companies?
Term Finance operates solely online and who wouldn’t prefer that approach. We live in a technological age where the click of a button on a smartphone or a computer is more widely acceptable than walking into an office. It is more efficient, faster and saves time. This is not only beneficial to clients but also to the company as they save money from not having to set up and operate a physical branch.
Term Finance began operating online in Jamaica in September 2017 but went live in November and in just four hours of business, the company issued its first loan. The secret is in checking the applicant’s credit score. Once this is completed the process takes little to no time. The company achieves this through algorithms and proprietary systems and technology that help to reduce costs. Term Finance wants to ensure that their customers are able to save money in the application process and also through the low interest rates. The company’s three months loan is priced below 10 per cent but in other countries the rate is at 12 per cent.
Term Finance Jamaica Limited is looking to increase its loan book in 2018 and hopes to achieve this through more frequent engagements with the public.