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Bank Muscat najahi launches PoS receivables financing for small businesses

MUSCAT, 29 August 2015 – Bank Muscat, the flagship financial services provider in the Sultanate, as part of its commitment to encourage entrepreneurial initiatives, has launched a first-of-its-kind point of sale (PoS) receivables financing for micro and small businesses. The specially designed short-term finance is aimed at meeting the working capital requirements of small businesses and maintaining cash flow.

The key features of najahi PoS receivables financing include short tenor (ranging from one to six months) with daily installment repayments. A small amount is automatically deducted daily from customers' bank account to repay loan. For example, a najahi customer who avails PoS receivable financing of RO 1000 for six months (180 days) can opt for a daily repayment value as low as RO 5.725. The evergreen facility allows najahi customers to keep repaying and replenishing the loan, thereby ensuring assured cash flow

Customers are also not required to provide any collateral guarantee for PoS receivables financing, which can be facilitated through simple documentation. The convenience and speed of najahi PoS receivables finance help customers to meet their urgent requirement of funds. In a quick and hassle free process, najahi customers with 1-year PoS track record are eligible to avail the collateral-free finance.

The new value-added najahi products and services are aimed at offering a major boost for small businesses in Oman. Bank Muscat has taken major initiatives to provide the required support for entrepreneurs, especially youth, who constitute the future of Oman. The bank's commitment stems from the strong belief that entrepreneurial ventures help boost the local economy, contribute to the GDP and create self-employment opportunities for youth.

The range of specially designed najahi products for the small business segment include credit facilities without collaterals to establish and develop business. With najahi, Bank Muscat fulfills the primary need of finance for the micro and small business segment.

The najahi suite of products comprise flexi loan to support working capital, business expansion and other business needs; contractors loan to help complete contracted jobs; contractors bill discounting for completed contracted jobs; and the newly launched value added  current account

Bank Muscat has launched a series of initiatives to strengthen the SME sector in Oman. Serving as building blocks for entrepreneurs, these initiatives assume importance in the backdrop of the priority accorded by the government to develop the SME sector in Oman.