GCB Bank urges MSMEs to formalise businesses for easier access to finance

GCB Bank's Head of Micro and Small Enterprises, Cedric McAddy, has encouraged micro, small and medium-sized enterprises (MSMEs) to formalize their businesses to improve their capacity to engage financial institutions and access funding. Speaking after the bank's MSME Caravan Clinic in Accra, Mr McAddy highlighted that insufficient record-keeping and inadequate documentation are significant challenges for MSMEs in securing financing from formal institutions.

He explained that GCB Bank is addressing this issue by providing collection solutions and digital banking services to help businesses receive and record payments. With over 300 field operatives, the bank collects sales data and uses transaction information to assess eligible MSMEs for unsecured loans up to a million cedis. These initiatives are aimed at bridging the gap between traditional financial requirements and the realities of smaller businesses.

GCB is also providing digital tools for business, such as SoftPOS for mobile money and card payments, stock management tools, and a mobile application for MSMEs to manage their accounts. By offering these services, the bank aims to help MSMEs conduct and manage their businesses more efficiently. Mr McAddy emphasized that formalization is crucial for MSMEs to strengthen their relationship with financial institutions and improve access to financial support.

He invited businesses nationwide to join GCB's MSME ecosystem to help develop stronger enterprises and contribute to a more resilient Ghanaian economy.