09/09/2014
Specialize assert through The Chamber East Diwaniyah program
Funders sector faces challenges with small and medium enterprises
Specialized in the SME sector that funding opportunities for affiliates to become better and easy ways so companies can apply and get it after the brief proceedings if the request completed requests. The specialists said the bureaucracy by the Youth Council in the East Chamber on Monday evening, September 8 2014, Managing Vice President of the Executive Council of the young businessmen Moaz Al-ohali, who hosted the SCB Bank and Riyad Bank, most donors have developed procedures and switched to electronic trading for short time and effort contributing to access to financing as soon as possible.
The Assistant Vice President, Director of business banking with Riyad Bank branch region engineer Modhhi bin fureih Al-shammari several challenges facing the banking sector with small and medium enterprise sector by funding are: limited capital and inability to set up a credit file: weak authentication (current accounts, certificates of good implementation, sales transaction) and a feasibility study objective, in addition to the strengths of established (success criteria, factors contributing to competition) and the availability of labor, specialized expertise, lack of administrative and financial skills, in addition to expansion Careless in activity for several reasons: loss of cash flow and mixing of activities and the level of liquidity pressure on activity and financing needs and technical activities and the different strengths and success criteria (cost management), and loss of competitiveness factors leading to high risk and credit relationship.
Al Shammari said other challenges is the lack of manpower and the high competition between emerging businesses and larger facilities and capabilities, low levels of control over cash flows, leading to dysfunction in the financing structure, irregular accounting records, in addition to the limited technical supporters, technically and administratively. Credit Analyst in the Saudi credit and saving Bank Abdulaziz bin Abdulrahman Al-Awad said, the Bank offers interest-free loans to small and emerging businesses and trades and professions of the people, to encourage them to engage in business and the professions themselves and freelancers also offers social loans without interest to limited-income citizens, to help them overcome their financial difficulties, and to promote savings and savings to individuals and institutions in the Kingdom and find tools to achieve this goal, the Coordinator role, supplementing the care sector and emerging Noting that the Bank's support services via the electronic portal.
And besides that the paths in the year 1432 h consists of 5 tracks are: innovation, excellence, start-ups, and productive families, the cab and individual transport, pointing out that the first track provides support for inventors and innovators in the application of their innovations and turn their inventions into successful business ventures and funding on this path to 4 million riyals. And either the path of excellence, aimed at projects that achieved the greatest number of funding priorities described in the regulations for financing and investment whose cost is greater than 300,000 riyals and not more than eight million rials, up funding projects in this path to 4 million riyals. But the venture is designed to track small projects and emerging investment that does not exceed 300 000, maximum financing these projects 300,000 riyals, with productive family path aims to enable family members free work from their place of residence and source of income for the family and the funding of projects in this path to 50 000.
Intended route taxis and individual transport, that will create jobs for student funding, and funding projects in this path to 80 000. Al awad said that the total loans extended in the course of the year 2013 total 175 with a loan of more than 260 million, as total loans for start-up businesses to track the same year 1928 a loan more than 405 million.
Meanwhile, the Regional Director of the National Bank branch in the eastern region of Omar Ibn Saed bamusi said the Bank offers small business as a profitable activity does not exceed 30 million in annual sales, in what medium as a profitable activity, annual sales ranging from 30 million to 100 million, noting that Saudi Bank provides advisory services to companies in this sector as well as various products through an integrated funding programs : Working capital (and without) to various business segments and contracting services, asset finance (five years), and the suppliers of Saudi Aramco (does not require audited balance sheets), and the program ensuring financing for industrial and craft trade enterprises to ensure that industrial development fund, and the commercial real estate finance (10 years) in a flexible manner and renewed, and corporate credit cards, and the dealer program (rolling).
The Bank offers customer support and assistance through specialized courses include: e-commerce, and management challenges facing activity contracting, real estate investing strategies and how to start your small business, management of receivables and inventory management to improve profitability, and dynamic approach to management, and how to start your own home business. In conclusion, Naif Alqahtani Chamber Board Member and Chairman of the young businessmen in the Chamber Msaed AL Zamil honored the meeting guests with trophy.
