Monsha'at: Work on designing a financing mechanism aimed at easing the requirements of guarantees and the mortgage system
The Director of Finance Companies Department at the Small and Medium Enterprises Authority, Bader Al-Radhan, confirmed that great challenges are facing the young business sector, which the Small and Medium Enterprises Bank is working to address.
Al-Radhan said in a meeting organized by the Asharqia Chamber represented by the Small and Medium Enterprises Center on Tuesday 9 March 2021 and managed by the executive partner of Focus Management Consulting, Naif Al-Melhem, that several challenges face small and medium-sized companies, the most prominent of which are: the issue of guarantees and access to finance, referring to the bank officials working They strive to design a new financing mechanism and products to reduce the requirements of guarantees and the mortgage system, which constitute a major challenge for a particular segment in the SME sector.
Al-Radhan explained during the meeting that was held remotely that the bank provides many free services as a kind of support, the most important of which are: guidance, training, and various consultations through the service centers of the authority, and it is provided to the beneficiaries, whether they are stalled or successful establishments and are working to expand their activities, or An entrepreneur intends to enter the market, and all of these services will be available more in the coming period.
Al-Radhan pointed out that the Small and Medium Enterprises Bank targets all sectors, stressing that some sectors will have greater support, but this does not mean that the bank will lose sight of the rest of the sectors, indicating that the local market is full of many successful experiences and distinctive examples that have recorded success in recent times and have been able to adapt to the changes economic developments in the world.
Al-Radhan stated that the bank aims to increase the financing provided to the small and medium enterprises sector and bridge the financing gap, and to enhance the contributions of financial institutions in providing innovative financing solutions, and to achieve financial stability for this vital sector, to be a basic pillar for economic development in the Kingdom and an enabler to achieve Vision 2030.
It is noteworthy that the Small and Medium Enterprises Bank focuses on providing all its products and services in digital form without the need to establish branches, which contributes to the delivery of services to all promising areas.
