Dubai-based Islamic Finance Company (IFC) is featuring letters of credit (L/Cs) in its range of Shariah-compliant financing solutions for small- and medium-sized enterprises (SMEs).

According to IFC, it is also placing a big emphasis on SME business by establishing a new dedicated department focused purely on smaller firms.

Dedicated department

Although it is a relatively young company, IFC claims to have the skills and technical capabilities to offer fully Shariah-compliant financing solutions to SMEs to meet all of their working capital, trade and capital expenditure needs.

The company established in 2006 says it is targeting a range of clients from retail shops to trading companies and small manufacturers.

L/C counterparts

IFC reckons its L/Cs will be well recognised by counterparty banks worldwide because it is working in partnership with several major Islamic banks to make a range of trade finance facilities available.

As an alternative to L/Cs, IFC will also be offering its clients Shariah-compliant factoring services.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.