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Mashreq Bank Launches Program to Assist SMEs Access Working Capital

Mashreq Bank’s Supplier Finance initiative leverages the credit worthiness of large buyers to provide early payment to small suppliers, thus reducing the overall cost of financing the supply chain.

Small and medium-sized enterprises comprise 97% of all businesses in the Arab world, according to data published by the World Bank. They also employ half the workforce, which amounts to a staggering 150 million workers; and are directly responsible for about 40% of the Gross Domestic Product. Yet they have been sparingly catered to by the financial services sector, and it is important for them to access working capital if they are to make a more positive impact on the economy.

The International Monetary Fund notes that if small and medium-sized enterprises in the Middle East-North Africa region were to have increased access to financing, comparable to the levels witnesses in emerging economies, overall growth would increase by 1%, creating eight million jobs by 2025. Victor Penna, the Co-Head of Global Transaction Banking at Mashreq Bank, says that increasing the financial sustainability of supply chains is becoming more to corporate players in the region.

Mashreq Bank’s supplier finance programs not only increase access to working capital for small and medium-sized enterprises, but are also designed in such a way that they reduce overhead costs and improve the collection process. Buyers will be able to increase the efficiency of their payment management mechanism, and strengthen the supply chain network, which drives business growth. Mashreq Bank has been expanding its global footprint across the Middle East, with offices in Asia, Europe and the United States.

Mashreq Bank has also entered into a strategic partnership with the Sharjah Investors Services Centre (SAEED). The arrangement will enable registered businesses that operate under the Sharjah FDI Office (Invest in Sharjah) to access the Dubai-based financial institution’s banking services. Mashreq Bank’s digital banking platform NEOBiz provides instant account opening services and a dedicated relationship manager to small and medium-sized enterprises.

To support small and medium-sized enterprises better, customers will also be able to benefit from mobile point-of-sale solutions and payment gateways. They will also be able to enjoy discounted accounting packages and access to cloud infrastructure. Marwan Alichla, the Managing Director of Sharjah Investors Services Center, said that about 60,000 SMEs would be able to take advantage, contributing directly to increasing the AED 133 billion Gross Domestic Product of the United Arab Emirates.

Vikas Thapar, the Head of Business Banking at Mashreq Bank, added that businesses would feel empowered with this unique set of financial services. This would act as a catalyst for business growth and propel them to the next stage of growth in their journey.

New Horizons Business Consultants is a provider of corporate banking solutions in Dubai, United Arab Emirates. It is headed by Francesca Bouwman, who has years of experience in International Business Advisory and fluently speaks several European languages. For more details, call +971 58 500 8643 or email [email protected]

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