Small- and medium sized enterprises (SMEs) in the UAE may be set to benefit from improved access to letters of credit (L/Cs) and bank guarantees with the launch of Gulf Finance Corporation's (GFC's) suite of trade finance solutions.

The offering for SMEs is one of a growing number of services offered to the small businesses sector by alternative lenders.

Trade finance offering

Products available from GFC include bonds, bank guarantees and L/Cs starting at a minimum of 50,000 UAE dirham (AED50,000 - US$13,600) with a minimum tenor of 30 days.

"The UAE has developed into a regional trading hub and our research shows that there is a gap in the market for...trade finance services to SMEs and microbusinesses," according to GFC's CEO, David Hunt."By launching our trade finance facility we hope to close this gap," he says.

Growth opportunities

Hunt reckons GFC's own market research reveals that some 20 per cent of SMEs are looking to expand into new markets.

The SME offering also includes small business loans, business vehicle finance, working capital, asset finance, invoice finance, medical equipment finance and marine finance.

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