Trade Capital Partners & EDB to launch supply chain financing for SMEs
By Delisha Fernandes
Emirates Development Bank (EDB) has signed a Memorandum of Understanding (MoU) with Trade Capital Partners (TCP) to create supply chain finance and working capital solutions for SMEs.
The MoU will see the creation of a working group to discuss new ways of delivering supply chain financing to SMEs in the UAE. Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimise their working capital.
Shaker Zainal, Chief Business Officer of Emirates Development Bank, said, “We are constantly looking at new and innovative ways to support SMEs, which contribute more than 60% of the UAE’s non-oil GDP. Under this MoU, we will leverage our expertise combined with Trade Capital Partner’s platform to jointly bring more financing solutions to a wider range of businesses. This reflects our value of excelling through partnerships and will further support the growth of SMEs and promote innovation in UAE.”
This partnership was facilitated by Hub71, Abu Dhabi’s global tech ecosystem, as part of its efforts to support startups with commercial opportunities through its network of corporate and government partners in the UAE.
Bill Crawley, Founder & COO of Trade Capital Partners, said, “SMEs are the driving force of an economy, and start-ups are the future drivers. In line with other government initiatives to grow and drive these sectors, this partnership will provide significant support to this ecosystem and provide trade finance alternatives to growing businesses.”
EDB emphasis on developmental impact. The Bank’s direct and indirect financing is offered with long tenors, higher loan-to-value ratios, lower rates and interest grace periods.
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