Dolla, Innovative Systems partner on tech loans for customers
Microfinance company Dolla Financial has partnered with Innovative Systems on a financial agreement that will allow the tech product retailer’s customers looking to make purchases on credit.
The deal marks the second financing arrangement that Dolla Financial has struck with a small business or SME operator in four months, the other being Ryan Anderson’s RTA Biz Energy Solutions.
Mario Brown, country manager for Dolla Financial’s Jamaican operation, says the microlender is fielding requests from various SMEs but that its partnerships would be confined to businesses that trade in income-generating products.
“When we assessed the market, we see that there is a need for tech equipment such as laptop, tablets. Since the outbreak of the pandemic, there is an increase in the number of persons working from home, and there is still demand for tablets among students,” Brown told the Financial Gleaner.
“An item such as a laptop is classified as income-generating, and the same principal would apply for a solar energy solution business like RTA Biz. Outside of individuals that may want to purchase laptops for work use, there are also small to medium-sized companies that may want to purchase multicomputers from Innovative Systems, and so it’s on that basis that we decided to partner with them,” he said.
Innovative Systems, which was acquired by the Growth Tech Group in May, is poised for expansion. Executive Chairman of Growth Tech, Garth Walker, has said that $100 million will be spent on expanding the business, which currently operates two stores in Kingston.
Innovative Systems aims to attract more retail and business customers, which the Dolla financing package is meant to facilitate. The company now deals in technology devices and systems, stationery and other office supplies but is eyeing diversification into office furniture under its expansion programme.
Its goal is to grow revenues by 50 per cent within the first year of acquisition, largely from B2B or business-to-business sales.
The agreement between Dolla Financial and Innovative Systems takes effect on October 1.
Under the terms of the loan, customers can access between $15,000 and $250,000 to facilitate their tech purchases. For SMEs seeking to acquire goods from Innovative Systems, the company will fund purchases up to $2 million. Individual loans are repayable within six months while repayment of the SME loans are spread over 12 months.
“We hope this will facilitate our existing customers and entice new customers to join the Innovative family and enjoy our suite of products. This will be offered at both our Sovereign and Constant Spring locations,” Walker said.
Dolla Financial says it expects to enter into another financing partnership with a private paediatric clinic by year end.