Mashreq launches “Supplier Finance” to provide capital for small and medium-sized companies

Victor Pena: "There is a growing interest from companies in the region to enhance the stability of the business environment and financial services."

Mashreq Bank launched the “Suppliers Finance” program, with the aim of facilitating the access of small and medium-sized companies in the region to working capital.

The new initiative leverages the creditworthiness of larger buyers to provide affordable early payments to smaller suppliers, helping to reduce the overall cost of supply chain financing.

This program is complemented by the market-leading account receivable financing solutions provided by Mashreq Bank, which cater to all customers' supply chain financing needs.

Globally, SMEs play a pivotal role in shaping local economies.

World Bank statistics indicate that small and medium-sized companies represent nearly 97% of companies in the Arab world alone, and employ half of the workforce in them, about 150 million people, and constitute about 40% of the gross domestic product.

A report issued by the World Bank, before the outbreak of the pandemic, indicated that enhancing the access of small and medium-sized companies in the Middle East and North Africa to financing at one level, close on average, to what it is in advanced and emerging economies, will help increase annual growth by 1%, Which could contribute to providing up to 8 million job opportunities in the Arab world by 2025.

"There is a growing interest from companies in the Middle East in enhancing the stability of the business environment and financial services," said Victor Pena, co-head of global transaction services at Mashreqbank.

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