Reto Finance chief executive Adam Dawson tells Emily Moore why access to capital is a key factor in driving the Island’s entrepreneurial spirit and innovative outlook.

From knitting and fisheries to agriculture, tourism and, more recently, finance, Jersey has embraced a number of industries over the centuries in moves which demonstrate the Island’s entrepreneurial spirit and innovative outlook.

But while that spirit of entrepreneurialism remains strong, there is, says the chief executive of Reto Finance, one key obstacle which nearly all businesses encounter, and that is access to capital.

“Over the past few years, local trading businesses have found it increasingly difficult to access capital, a situation which has been particularly pronounced since the global financial crisis of 2007/8,” said Adam Dawson. “This is because, in the aftermath of the crash, banks were accused of having carried out lending activities in an irresponsible way, which prompted them to reduce their risk appetite.”

That, says Adam, has penalised businesses which have been categorised as “higher-risk” borrowers.

“If you are lending into the mortgage market at, for example, a 60% loan-to-value ratio and you have a bricks-and-mortar asset which is appreciating in value as security, then your loan is pretty safe,” he explained.

“However, if you are lending unsecured to a local business – particularly a start-up – which may or not be successful, the risk is much higher.”

But while many banks may have shied away from such activity, there are, says the man who has worked in the lending industry for nearly 40 years, still plenty of opportunities for businesses.

“Local small and medium enterprises need funding to grow, develop and take advantage of new opportunities,” he said. “As banks have moved away from this area of the market, it has created an opportunity for businesses such as Reto, which are specialists in this space, to step in.”

And while businesses have to be forward-looking in nature, Reto’s approach to SME lending has, in many ways, been inspired by the style of yesteryear.

“We have almost gone back to the way it used to be when the owner or manager of a local trading business would contact the bank manager, make an appointment and get a yes or no decision to their funding request almost straight away,” said Adam.

“While that is no longer possible with the banks, Reto has a number of business managers, each of whom understands a specific sector of the market and who can sit down with the business owner to discuss their needs, help them to navigate the borrowing process and make a quick decision. Indeed, it isn’t unusual for someone to see a business manager within 24 hours of their query and for the loan to have been approved and the money in their account within 24 hours of that appointment.”

It is that combination of specialist knowledge and personal relationships which Adam says is particularly valuable both to businesses and to the Island as a whole.

“Access to capital underpins everything when it comes to business growth, and the Jersey economy needs people like Reto who have good access to capital and the ability and expertise to go out and deploy that into the market,” he said. “Without that, businesses will not grow and if businesses are not growing, there are fewer job opportunities, lower productivity and less revenue being generated for the Island and the government.”

The Reto team’s specialist knowledge is also, Adam adds, one of the factors which enables the company to support this higher-risk form of lending.

“We mitigate the risks by having a team which is experienced enough to identify the good from the bad,” he said. “We don’t say yes to every business that comes through the door because we need to see well-thought-through plans and have the confidence that the business will succeed.

“However, sitting across the desk from the business owner and talking to them to get a real understanding of their proposal and needs is far more valuable, and leads to far more approvals, than asking them to complete a form online and allowing a computer to decide. Our local expertise and personalised approach allow us to make many more positive decisions.”

This, he adds, is particularly important when it comes to “making decisions in the grey areas”.

“Some decisions are very simple,” he pointed out. “If someone is not good with money and has tripped up in the past, that information is widely available and is a clear red flag.

“Similarly, if someone has successfully managed a business for some years, generated profits and paid their staff and suppliers on time, then they would be seen as lower risk.

“However, the grey areas are more challenging. If, for example, someone is starting their first business and has a great idea but no track record, the decision-making process is much more nuanced.

“In one recent example, someone came to us saying that they wanted a loan to enable them to open a restaurant. This is an inherently high-risk area of the market. Lots of restaurants open, and the success rate is mixed. It also takes a lot of investment before you are able to open and start generating any revenue.

“In this case, the client’s wider family had been involved in the industry for many decades, so our local knowledge and understanding of both the sector and the person’s background and connections informed our decision.”

Another factor which Adam says enables Reto to invest in areas which may be less attractive to banks is the business’s funding model.

“We are funded through capital markets rather than from consumers depositing money into accounts with us,” he said.

“While that can make our cost of capital higher and may mean the product we provide is slightly more expensive, it also enables us to offer solutions which are often not available elsewhere. And cost is often not the only consideration for business owners.

“If you are able to get a positive decision quickly, which enables you to take advantage of the opportunity in front of you and start growing your business so that you can generate additional wealth, you will consider that alongside the cost.”

Such loans, Adam adds, range from a few thousand pounds into the millions, depending on the size of the business, its goals and the security that it may be able to offer.

“We provide loans across the spectrum, working with a diverse range of businesses from sole traders to fairly large household names,” he said.

And while the market may have been somewhat challenging recently, particularly in sectors such as construction, Adam said there is still lots of demand for lending.

“Jersey is full of innovative people and is generally an easy place to do business, as there is nothing like the level of red tape here as there is in the UK, and there are lots of bodies, such as Jersey Business and Digital Jersey, which help to incubate new business and provide advice.

“However, while it is all very well – and important – to receive advice and a desk, ultimately these businesses need funding both to get off the ground and then to grow, and that is where people like us step up and, having seen demand for our services grow every year for the past six years, I am confident that 2026 will be another year of growth both for us and for local businesses.”

30 THURSDAY 22 JANUARY 2026 JERSEY EVENING POST
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