Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector
One of the critical challenges to micro, small, and medium enterprises (MSMEs) continues to be access to finance (World Bank 2019). Asset-based lending (ABL) is emerging as a unique financing option for businesses and a new way to provide working-c...
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| Format: | Report |
| Language: | English |
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International Finance Corporation, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/692151605592996578/Assessment-of-Secondary-Markets-for-Movable-Assets-in-the-Jamaica-Manufacturing-Sector http://hdl.handle.net/10986/34810 |
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okr-10986-348102021-04-23T14:02:09Z Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector International Finance Corporation FINANCIAL SECTOR DEVELOPMENT SECONDARY MARKET MOVABLE ASSET ASSET-BASED LENDING SME FINANCE LENDER SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT AGRICULTURAL FINANCE One of the critical challenges to micro, small, and medium enterprises (MSMEs) continues to be access to finance (World Bank 2019). Asset-based lending (ABL) is emerging as a unique financing option for businesses and a new way to provide working-capital financing to support business growth and sustain business operations. The approach leverages nontraditional but valuable movable assets such as machinery, equipment, securities, accounts receivable, agricultural produce, and intellectual property rights as collateral to secure financing from credit institutions. These assets are common among entrepreneurs and established businesses but are seldom considered as a useful form of collateral to access short-term financing. Interestingly, among developing countries, movable assets represent as much as 78 percent of the capital stock of enterprises relative to immovable assets such as land and buildings (22 percent) (Alvarez de la Campa 2011). Despite this, insufficient collateral continues to be one of the main reasons loans are not granted in emerging markets (Fleisig, Safavian, and de la Pena 2006), perhaps reflecting the preference of financial institutions to utilize collateral based on immovable assets such as land and buildings. This assessment seeks to examine MABL in Jamaica, with a focus on developing possible options for deepening secondary markets among assets commonly used as collateral in MABL. The report includes recommendations for developing secondary markets, among other potential assets that can be used for MABL, as well as general steps for implementation. 2020-11-24T18:17:35Z 2020-11-24T18:17:35Z 2020-10-01 Report http://documents.worldbank.org/curated/en/692151605592996578/Assessment-of-Secondary-Markets-for-Movable-Assets-in-the-Jamaica-Manufacturing-Sector http://hdl.handle.net/10986/34810 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Sector Study Latin America & Caribbean Jamaica |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FINANCIAL SECTOR DEVELOPMENT SECONDARY MARKET MOVABLE ASSET ASSET-BASED LENDING SME FINANCE LENDER SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT AGRICULTURAL FINANCE |
| spellingShingle |
FINANCIAL SECTOR DEVELOPMENT SECONDARY MARKET MOVABLE ASSET ASSET-BASED LENDING SME FINANCE LENDER SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT AGRICULTURAL FINANCE International Finance Corporation Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector |
| geographic_facet |
Latin America & Caribbean Jamaica |
| description |
One of the critical challenges to micro,
small, and medium enterprises (MSMEs) continues to be access
to finance (World Bank 2019). Asset-based lending (ABL) is
emerging as a unique financing option for businesses and a
new way to provide working-capital financing to support
business growth and sustain business operations. The
approach leverages nontraditional but valuable movable
assets such as machinery, equipment, securities, accounts
receivable, agricultural produce, and intellectual property
rights as collateral to secure financing from credit
institutions. These assets are common among entrepreneurs
and established businesses but are seldom considered as a
useful form of collateral to access short-term financing.
Interestingly, among developing countries, movable assets
represent as much as 78 percent of the capital stock of
enterprises relative to immovable assets such as land and
buildings (22 percent) (Alvarez de la Campa 2011). Despite
this, insufficient collateral continues to be one of the
main reasons loans are not granted in emerging markets
(Fleisig, Safavian, and de la Pena 2006), perhaps reflecting
the preference of financial institutions to utilize
collateral based on immovable assets such as land and
buildings. This assessment seeks to examine MABL in Jamaica,
with a focus on developing possible options for deepening
secondary markets among assets commonly used as collateral
in MABL. The report includes recommendations for developing
secondary markets, among other potential assets that can be
used for MABL, as well as general steps for implementation. |
| format |
Report |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector |
| title_short |
Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector |
| title_full |
Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector |
| title_fullStr |
Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector |
| title_full_unstemmed |
Assessment of Secondary Markets for Movable Assets in the Jamaica Manufacturing Sector |
| title_sort |
assessment of secondary markets for movable assets in the jamaica manufacturing sector |
| publisher |
International Finance Corporation, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/692151605592996578/Assessment-of-Secondary-Markets-for-Movable-Assets-in-the-Jamaica-Manufacturing-Sector http://hdl.handle.net/10986/34810 |
| _version_ |
1764481702433914880 |