MUSCAT, 1 January 2014 – Bank Muscat, the flagship financial services provider in the Sultanate, has evoked strong response to its unique non-collateral SME finance which addresses a critical requirement of entrepreneurs in Oman. The facility has broadened financial access for entrepreneurs to avail SME finance without collaterals.
Ilham Al Hamaid, AGM – SME Credit, Marketing and Regional Corporates, said: “al Wathbah SME non-collateral finance has opened a new world of opportunity for entrepreneurs. The SME finance not requiring collaterals is a bold step affirming the bank's commitment to encourage an entrepreneurial culture in Oman."
Ilham Al Hamaid added: “Bank Muscat initiatives aimed at supporting entrepreneurs and developing the SME sector stem from the Royal directives to promote SME role in the development of the national economy. Bank Muscat takes pride in adopting tangible steps aimed at implementing the Royal directives on SME development benefiting the country's youth."
al Wathbah non-collateral finance is designed to offer innovative banking solutions in the form of financing for business activities such as purchase of equipment, supply of raw materials or provision of working capital and other financial requirements of entrepreneurs.
Ilham Al Hamaid said: “We are happy that al Wathbah SME non-collateral finance has simplified the procedures related to SME finance, unlocking the potential of entrepreneurs. The aim is to complement the government's efforts in the development of this vital sector, facilitating SME finance, especially for those who do not have a long credit history or easy access to collaterals."
The innovative SME finance covers contract and supply finance as well as asset finance. Businesses registered under the Ministry of Commerce and Industry as per the Omani law with annual sales turnover up to RO 2 million and managed either by Omani nationals or in partnership with expatriates are eligible to apply for al Wathbah non-collateral finance.
For contract and supply finance, an SME can receive credit facilities from the bank either under purchase order finance (POF) or receivable finance (RF).
Asset finance is aimed at providing part-finance cost of capital equipment, including passenger cars, transport vehicles, construction equipment, cranes, dredgers, dumpers, generator sets