Chief Executive Officer of UT Bank Stephen Antwi-Asimeng has called on small and medium enterprises (SME) owners to explore other financing schemes beyond banks’ credit and desist from prioritising loans as the only major factor to grow their businesses.

He said: “Having pioneered SME financing, we have come to understand that SMEs usually need a lot more than financing.

“Many times what SMEs require goes beyond what a bank can provide. For a company that is heavily indebted that looks at growing and looking forward long-term planning, they would usually need a partner or long-term financing; and many times banks are not well-structured to provide this, hence the availability of a complementary array of finances,” Mr. Antwi-Asimeng added.

He said this at an SME clinic organised by the bank in Accra last week to educate SMEs on various financing schemes available, and offer them the opportunity to learn more about practices that will make their business attractive on the market.

According to him SMEs need to properly structure their operations, respect corporate governance, put in place book-keeping and accounting records, and also invest in their own succession to become more attractive in the current challenging economy.

Experts have indicated that the success of a country’s development is closely linked to development of the SME sector, hence the sector’s relevance to the economy. Further statistics also show that in Ghana over 70 percent of the country’s annual GDP is contributed by SMEs.

Speaking at the seminar, Managing Director of InvestCorp - an investment Banking and Asset Management firm -- Sampson Akligoh also advised SMEs to desist from taking short-term loans from banks to develop long-term projects.

He challenged SMEs to learn about different financing options, as loans are the most expensive among others available -- such as equity and securitised debt wherein a customer is not required to pay interest immediately at the end of every month.

Mr. Akligoh further noted: “Very high interest expenses resulting from loans is a reason many SMEs do not grow.

“Many times when small businesses talk to bankers or financiers, they raise only one issue --money. But after carefully going through the issues and discussing the true needs, one will find that money is either not the important thing they need or just one of several,” he added.