Initiating and then growing a business is a tough assignment in the best of times; trying to do this in a market full of uncertainties makes
it doubly so.
Mashreq Bank Bahrain has always endeavoured to support SMEs in the Kingdom, due to the important role they play in the economy. With the growing needs of this segment, the bank has taken steps to ensure the development of products and services to boost the SME sector.
At this moment in time, Mashreq has three sets of current account packages for SMEs depending on the operational size of the organisation. A basic ‘value’ account can be opened for all small-sized companies, a ‘premium’ account can be opened by mid-sized SMEs, which carries attractive transactions costs, and ‘platinum’ SME accounts can be opened by medium enterprises. The ‘premium’ package carries highly discounted transactions costs and both premium and platinum clients have access to dedicated relationship managers as well.
Currently, the company is able to provide financing to two categories of clients. Small companies, with a minimum of three years in business and minimum annual sales of BD150,000, will be offered Mashreq’s small business loans (SBL) proposition. These loans are offered for a maximum amount of BD30,000 and for a maximum tenor of 48 months. Before the loan is provided an analysis is always made of the client’s bank statements and audited financials as part of Mashreq’s quick credit decision. Good businesses with satisfactory track record can apply for the SBL.
For slightly higher end SMEs a comprehensive trade and working capital proposition is offered. This involves an in-depth analysis of the client’s financial statements and arriving at a judgmental call to provide financing. Under this arrangement, Mashreq can go up to an amount of BHD 500,000. The products covered under this are letters of credit, guarantees, overdrafts and short term loans.
Within the conventional banking space, very few banks have ventured into small business financing. Instead, Mashreq offer comprehensive and convenient tailor-made SME propositions, designed to assist customers to fulfill their business aspirations. Mashreq believes it has a good handle on the market as this product has been launched at a time when banks are retreating from offering small or micro finance and are mainly focused on large companies.
An online banking platform is something that Mashreq is building upon in order to offer customers a seamless banking experience. Currently a simple and user-friendly online platform is available, which enables customers to check their balances and account movements on a daily basis. However a full-fledged and comprehensive online banking platform exclusively for SMEs is currently being developed and will soon will be available to all SME clients in Bahrain.
Call 17 504-417 or 17 504-415 or visit www.mashreqbank.com
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