Describing itself as "building Jamaica with Jamaicans for Jamaicans", the Cash Plus Group has attributed its meteoric success to providing venture capital for fledgling businesses and investing three quarters of its assets in companies which are involved in "day-to-day trading activities".At the same time, the group, which insists that it observed "strict adherence to the best business practices," admits that it is in talks with at least one regulatory body.
In a statement obtained by The Gleaner, the group noted that it is extremely difficult for local businesses to grow because of the unsophisticated secondary market and the "lengthy and frustrating" loan processes in the formal banking sector which, more often than not, result in the borrower being loaned less than he originally applied for.
No other
"Owing to the fact that the business has no othe it is then forced to take that capital even though it does not meet its requirements, only to find out that they are in no better shape than before."
It is these businesses, Cash Plus says, that it invests in and has resulted in the group making over 50 acquisitions while at the same time operating debt free.
"Cash Plus has focused on certain industries which we believe not only bring substantial profit to the group, but also great benefit to the consumer. These industries include telecommunications, computers, food and entertainment."
In fact, the Cash Plus Group - formed through a series of mergers, acquisitions, joint ventures and partnerships - has about a dozen majorsubsidiaries covering phone card distribution, telecommunications, development and construction, food, security services, import-export, computers, hotels and restaurants, automobile and auto parts. It employs about 2,000 persons islandwide.
Questions raised
Still, questions have been raised about the ability of the Carlos Hill-led Group that has been able to reward its participants (lenders) with double- digit monthly returns as well as the viability of Hill's operations. There have been calls for the group to be regulated but Cash Plus insists its operations are open for inspection.
"Our financial statements are always available to our lenders. Each lender is able to receive a monthly statement." Cash Plus also said it does not deal in foreign currency trading.
However, it acknowledged that it was in dialogue with the Financial Services Commission (FSC), the regulatory body for the non-banking financial sector, as well as the insurance industry.
"We have had dialogue with the FSC and in furtherance of that dialogue it is our intention to do all things necessary to ensure that we operate in harmony with [them] and all other relative regulatory bodies. We are confident that a positive resolution will be arrived at in short order," the statement said.