The Union of Export Credit, a UAE-based credit protection company, has launched the "Protecting Small and Medium Enterprises" (SME).
The service is a trade credit protection solution for exports and is designed specifically for UAE-based SMEs to support their growth plans globally and help them enter emerging markets.
The new service is cost-effective, easy to access and manage, and is available to small and medium-sized companies engaged in the export and re-export of goods and services as of September 1, 2019, with the aim of converting their limited reliance on traditional letters of credit or cash payments to Open Credit.
The service aims to facilitate the business of UAE companies and expand their understanding of commercial credit solutions in order to accelerate their export growth safely. By providing collateral for their trade receivables, SMEs can now provide credit to clients without incurring financial losses.
"The UAE government is committed to enhancing the contribution and performance of local small and medium-sized enterprises (SMEs)," said Saeed Al-Awadhi, Executive Chairman and Chairman of the Export Credit Committee.
He added that the State has taken a leading role in developing strategic initiatives to support the financing of this sector, pointing out that the service of «protection of small and medium enterprises», will help exporters and local companies to access the world markets with high competitiveness.
"The launch of the SME Protection service supports UAE companies towards safer trade and higher growth at different stages of their business cycles and financial capacity," said Massimo Valcioni, CEO of EFTC.
"The launch of commercial credit solutions offered by the SME Protection Service comes as a result of a survey conducted in cooperation with the Abu Dhabi Chamber of Commerce and Industry and Dubai and Ras Al Khaimah in 2018. The survey showed that 97% of SMEs prefer cash letters of credit , While only 3% prefer to sell by credit ».
The company is confident that this service will enhance the potential of SMEs by reducing the risks and challenges faced by these local companies as they enter competitive international markets. High.