The Integrator Interview

Publication: The Integrator

Topic: SMEs

Spokesperson: Amit Malhotra, General Manager - Personal Banking Group

What role the CBD, as one of the longest established banks in the country, has played in helping SMEs to grow and thrive?

As a financial solution provider, we firmly believe in backing our customer’s ambitions. At CBD, we recognize that SMEs are the backbone of the UAE’s economy, accounting for around 94 per cent of businesses in the country and it is imperative that they get the right support to grow and expand their businesses.

As one of the first and most reputed banks in the UAE, CBD has always differentiated itself from the other competitors by truly being a bank focused on the family-owned and managed businesses across all the Emirates in the UAE. Over the years, it has supported numerous small and medium enterprises that have later grown with us to become large corporates.

Further, we have partnered with several Government entities such as the Dubai Economic Department and Free zones such as JAFZA, DMCC, DCAA and RAKEZ to offer a full suite of products that is specially tailored for the SME segment to fulfill their business requirements and back their ambitions.

What are the business solutions you offer for newly on-boarded SMEs at CBD?

CBD provides SMEs with a wide range of solutions. We offer instant digital business accounts through our state-of-art, CBD Rise Digital account opening platform enabling SMEs to get access to banking transactions and services instantly. The digital business account offers attractive features such as no minimum balance requirement and a choice of six account currency denominations, as well as a complimentary business debit card with high daily cash withdrawal limits.

We offer SMEs fast and easy access to secured business loans and a wide array of financing solutions that suit their business needs. Our SME customers can avail of competitive rates on money transfers, remittances and foreign currency exchange.

CBD also provides SMEs with experienced business banking relationship managers to provide them with the required advice, guidance and individual client support.

Give us some insight into other business financing services you offer and their eligibility criteria

CBD provides SMEs with a comprehensive portfolio of financing solutions that includes regular working capital facilities, collateral-free business term loans, business credit cards, overdrafts and lots more.

Our business term loan is an award-winning product, which offers an advisory tool that helps SMEs manage their finances and supports their business growth through a customized business finance package. It combines purpose-specific business products which allows them to better manage their business growth efficiently, thus saving time and money by applying for one comprehensive and affordable solution instead of multiple loan facilities.

We offer SMEs market leading financing facilities with high loan amounts, flexible repayment options, low-interest rates and fast approvals granted within 48 hours of the application’s submission. Our facilities also include quick business loans for retailers and online trading and service sector businesses against their point of sale (POS) machines’ proceeds which can be easily repaid through monthly instalments of sales proceeds collected from the POS machines.

Tell us a bit about the next few years’ growth prospects of SMEs in the UAE

After facing unprecedented challenges in the wake of the Covid-19 pandemic, 88% of SMEs in the UAE are optimistic about the next 12 months, according to the latest research study conducted by MasterCard, published in the 2021 Mastercard Economic Outlook.

The study also showed that 73% of UAE consumers are shopping more online than they did since the start of the pandemic and 97% of UAE shoppers would consider making a purchase with an emerging payment technology over the next year.

CBD has been pioneering this digital transformation and provides its customers with a wide range of digital tools that enables them to accept online payments as well as accept payments through POS and is well positioned to meet the evolving digital needs of consumers.

In line with our purpose to back the nation’s ambitions, we will continue to support our SME customers, ensuring they get access to the financial and banking products they require to set up and grow their businesses.

Any new product or service initiated by CBD to grow its SME sector engagements

CBD launched its unique digital instant business account for SME customers through the CBD Rise Digital platform, offering four feature-rich business bank account packages that are not only value-packed, but also designed to meet customers’ everyday banking needs and deliver a better banking experience.

CBD offers exclusive financing facilities, including unsecured loans of up to AED 2 million, with flexible repayment options of up to 48 months, low-interest rates, and fast approvals granted within 48 hours of the application’s submission. The benefits also include quick business loans for retailers and online trading and service sector businesses against their POS proceeds, with finance amounts up to AED 1 million. The loan payments can be easily repaid through monthly instalments of sales proceeds collected from the points of sale.

SME customers can avail of CBD business credit cards with features that meet their personal and business needs such as free for life cards with credit limits of up to AED 250,000, a cash advance facility of up to 50% of credit limit for urgent expenses, access to a flexible line of revolving credit and more.