SMEs alert: New business finance and loans in UAE

October 10, 2016 5:15 pm

* RAK Bank launches a suite of new business banking products for SMEs

* Point-of-sale loan (POS), a machinery loan, real-estate financing and buy-out loan on offer

* Bank’s loan growth in 2015 was nearly ten per cent.


Are you a struggling owner of an SME in the UAE? Will financial help solve some of your problems? If you are nodding your head, the latest announcement from National Bank of Ras Al Khaimah (RAKBANK) might make you feel better.


The lender has rolled out a suite of new business banking products, which include a point-of-sale loan (POS), a machinery loan and real-estate financing. The bank has also launched a buy-out loan that will assist small and medium-sized enterprises (SMEs) in managing their day-to-day liquidity as well as plan their business expansion.


POS loan

This is aimed at giving extra support to the retailers in the country by providing a loan amount based on the total value of transactions that are made through the POS machine.


Real-estate financing

The scheme supports the capital expansion plans of SMEs by offering them the opportunity to own commercial property. The real-estate loan is valued at up to AED25 million and customers can enjoy flexible pricing, repayment period and loan tenor.


Machinery loan

This is an asset-backed financing tool to help businesses buy machinery, equipment and other commercial assets to support their expansion plans. Re-financing options are also available.


Buy-out loan

Companies in the UAE that are in search of a better financial solution to manage their liquidity without additional cost or collateral can benefit from the buy-out loan.


The bank is also offering advisory service to support SMEs in countering challenges in their business lifecycle.


Loan growth

Coming barely one-and-a-half months after the chief executive of the bank said he was expecting a “flattish” loan growth in 2016 as borrowing demand remains muted from SMEs, the new announcements perhaps hint at the bank’s efforts to counteract the slump.


“My broad feeling is that year-on-year it will be low single digits,” Peter England told reporters on August 23 when asked about his bank’s loan growth in 2016.


“The business banking is shrinking – it will continue to shrink for some time and it’s not because we are not lending, it’s just there is not so much demand as there was. We are making up for it, to some extent on the wholesale side and to some extent on this [the retail] side,” he had said.


The bank’s loan growth in 2015 was nearly ten per cent.

(With inputs from Reuters)


AMEinfo Staff
By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.