As an SME owner, a gamut of accounts to cater to all your financial needs is offered by most banks in UAE.
SMEs need a robust banking system to support their specific commercial banking needs.
Current accounts specifically designed for SMEs can suit your daily transaction needs. Types of current accounts offered by banks are:
- Standard current account
- Premium / Priority current account
- Free-zone current account
- Elite current account
Business term deposits with flexible tenures and attractive interest rates ensures that your money earns for you too.
Commercial Banking Call account
This is a unique banking product which amalgamates the flexibility of a current account with the earning potential of a term deposit. You can withdraw money from this account usually by informing the bank a day prior.
Banks in UAE offer loans and financing options designed to meet the small business needs of SME customers including business expansion and working capital requirements.
Most banks in UAE offer a range of option for your medium to long term working capital needs. Some of them are :
- Invoice discounting
- Enterprise credit
- Secured trade finance
- Special financing for SMEs that support the government
A simple unsecured finance for SMEs to help them focus on the business and make it a success. There is no collateral needed and usually these loans get approved within 48-72 hours of the receipt of application.
Vehicle / Equipment Finance
As your business expands, you might have to purchase equipment or vehicles. This is a secured loan with the vehicle / equipment working as a collateral for the loan. Some options available are:
- Commercial vehicle loan
- Medical equipment loan
- Construction equipment loan
- Office equipment loan
Buying commercial real estate is costly in UAE. Commercial real estate finance helps SMEs achieve their goals by offering loans for purchasing or constructing commercial property.
- Finance for purchase of commercial property
- Finance for construction of the property
- Finance for lease rental discounting
- Property mortgage solutions (Overdraft)
If you are into imports, exports or re-exports or need short term financing, most banks in UAE offer comprehensive trade finance solutions. You may avail from a list of services like:
Letters of Guarantee : Most banking offering SME services issue letters of guarantee for your participation in bids. Research well before you finalize the bank from which you wish to avail this service.
Shipment Finance : For business into exports, the requirement of cash pre and post shipment can be managed with this service without affecting the regular cash flow of the business.
Tailored Trade finance : Depending on the nature of your business and your requirements, banks might offer tailored trade finance options to you. Make sure to talk to your bank about such services.
Shariah-compliant SME banking solutions are also available with most banks in UAE. The products and services mentioned above are available under various laws of Islamic banking.
Every bank has its own eligibility criteria which needs to be checked individually. However, some basic requirements are as follows:
- Registration as a proprietorship, partnership, limited liability company or Free Zone Entity.
- To have been in operation for at least 3 years.
As is the case with eligibility, every bank can have its own requirement of documents to process your application. Apart from the application form, some basic documents needed are:
- Copies of the latest Trade License, commercial registration certificate and passport or I.D. copies of owner(s)/partners.
- A brief description of the company and its activities.
- Audited financial statements of the business for the last 3 years (if available).
- One year's account statements from all banks with which you do business.
- Request letter on business letterhead for the SME services you require.