Rakbank gives lending boost to small businesses

An aggressive SME marketing campaign by the bank is currently running amid ongoing media reports on the difficulties faced by small businesses, as banks' lending policies remain generally tight towards the SME sector.

The campaign promotes not only the continued availability of SME finance to eligible customers, but also the reasonable terms and conditions of the loans. The bank offers finance up to Dhs500,000 without the need for borrowing companies to place deposits or assets as financial securities against the loans.

"SMEs form the backbone of the UAE economy and are the largest employing sector in the country. Their health is crucial to the local economy's ability to overcome market challenges effectively and quickly, and, within the bank, they represent the fastest-growing area of business and a key priority."

said Graham Honeybill, General Manager.

"The SME sector may be seen as a high-risk area by many banks, but we have continued to extend finance services to businesses that demonstrate viable business models and healthy cash-flows, and there are still plenty of these types of businesses around", continued Honeybill.

The requirement of collateral is a significant obstacle for SMEs in accessing finance, as these assets can otherwise be used as an additional source of capital or offer other benefits to the business when not locked down as a financial security. By eliminating the need for collateral, Rakbank aims to facilitate finance to SMEs in an effective way and without setting unrealistic demands.

SMEs are estimated to make up 85% of companies registered in the UAE according to the Abu Dhabi Chamber of Commerce. Rakbank is an active provider of financial solutions to the SME sector, with a range of loan and deposit services to suit their requirements.

The bank lends to eligible businesses operating for at least one year, and assesses their credit-worthiness through an analysis of their business models, growth plans and available financial information. SME Finance services are available at the bank's 26 branches in the country, including its 7 dedicated SME centres.