The Guyana Bank for Trade and Industry (GBTI) has unveiled a groundbreaking invoice financing program aimed at revolutionizing access to capital for contractors in the burgeoning oil and gas sector. Launched on Friday, February 15, 2025, this initiative addresses a critical need for working capital among suppliers providing services to ExxonMobil and its prime contractors in Guyana.
Key Features of the Program
The new financing facility offers several attractive features:
- Up to 80% advance on validated invoice value
- Flexible terms with loan maturity matched to invoice due dates (30 to 180 days)
- Competitive monthly interest rate of 1.25%
- No hidden fees or early repayment penalties
- Simple application process
Eligibility and Process
To qualify for this financing option, businesses must:
- Be registered suppliers with a proven track record in the oil and gas sector
- Hold validated invoices from Esso Exploration and Production Guyana Limited (EEPGL) or its prime contractors
- Submit a completed credit application form
- Comply with GBTI’s anti-money laundering (AML) and regulatory standards
- Provide proof of contract history and supplier performance
Impact on Local Businesses
This initiative is expected to significantly ease the financial bottlenecks faced by local suppliers in the oil and gas industry. By providing immediate access to a substantial portion of their invoice value, businesses can maintain steady cash flow, reinvest in operations, and scale their activities without waiting for extended payment periods.
Rawattie Mohandeo, GBTI’s Chief Commercial Officer, emphasized the transformative potential of this program: “We have long understood the challenges faced by local suppliers in securing working capital to meet contract obligations. This initiative aligns seamlessly with both GBTI and ExxonMobil’s broader vision for Guyana, which is to create greater accessibility to finance for local businesses, enabling them to participate more actively in the country’s growing economy.”
Government Support and Future Expansion
Dr. Ashni Singh, Senior Minister responsible for Finance, lauded GBTI’s initiative, highlighting its alignment with the government’s efforts to support local businesses in the rapidly expanding oil and gas sector. He urged GBTI to swiftly extend the program to Tier 1 contractors and consider similar facilities for sectors beyond oil and gas.
The minister also contextualized the program within Guyana’s broader economic growth, noting that private sector credit has surged from approximately $260 billion in 2020 to over $450 billion by the end of 2024.
Looking Ahead
GBTI has indicated plans to expand the invoice financing program to other tier one contractors in the oil and gas sector and potentially to other industries where credit risks remain manageable. This expansion could further stimulate economic growth and support local businesses across various sectors of the Guyanese economy.
As Guyana continues its rapid economic transformation, initiatives like GBTI’s invoice financing program play a crucial role in ensuring that local businesses can fully participate in and benefit from the country’s oil-driven boom. By addressing the critical need for working capital, this program is set to become a key enabler of growth and development in Guyana’s evolving business landscape.
