NewHayven Merchant Bank, under the stewardship of Certified Public Accountant (CPA) Floyd Haynes, is set to deploy an impressive US$45 million in funding to Guyanese businesses by the end of 2023. During a recent radio interview, Haynes said this monumental infusion of capital is a testament that innovative financial solutions can work in Guyana’s market which has been dominated by traditional banking methods.
“We are not a conventional bank; we are a merchant bank, a new concept in Guyana, where existing establishments are primarily commercial or retail banks,” Haynes explained. In delineating the differences, he emphasizes, “Unlike them, we don’t take deposits, nor do we hand out loans…”
Haynes said, “What we do is we take companies, we package them, and we prepare a pitch book…then we take it to investors. This is called structured project financing. We structure and arrange and we get a fee for doing that…”
Haynes said NewHayven’s approach is tailored and forward-thinking, concentrating on nurturing startups and supporting business expansions when there is little collateral to put up. Services such as accounts receivable financing and equipment and inventory financing are part of the bank’s arsenal designed to fuel the engine of the nation’s businesses.
Haynes acknowledged the cultural shift required to embrace this novel model, particularly in a post-oil-discovery Guyana. The CPA said, “The discovery of oil has altered the business environment, but the business culture is somewhat trailing. Educating clients about the benefits of merchant banking is part of our mission.”
Guyana Standard understands that the bank’s philosophy is to construct a financial structure that harmonizes with the client’s business profile, offering alternatives to traditional debt capital. “We deal with equity as well – you might sell a part of your company in exchange for funding. There are numerous innovative financing methods that we offer,” Haynes elucidates.
Looking forward, Haynes said NewHayven Merchant Bank is not resting on its laurels. Haynes said, “We aim to launch a private equity fund, a real estate fund, and a mutual fund.” These initiatives are pending approval from the Guyana Securities Council, with the bank actively engaging in dialogues to meet regulatory requirements.
Haynes said the deployment of such significant capital stands as a testament to the bank’s commitment to the economic development of Guyana, proving that with the right financial tools and a forward-thinking mindset, local businesses can thrive and propel the nation forward.