Short and Medium Term Commercial Financing by A Lending Institution in UAEExecutive SummaryThe short and medium term financing institutions in UAE play a vital role in the economic development of the country (Galal A, 75). This paper discusses the types and forms of financing, policies and procedures, methods of evaluation, success and the role of the government in the short and medium term commercial financing by a lending institution in UAE. The bank that has been select is called Doha bank which is in UAE. There variousprocedures that were used to get information about the bank.
These included visiting the Doha website and text books. This paper looks into various aspects of the bank. There are various types of finances that Doha bank have. They include short term and medium term. The short term and medium term are issued in terms of cash money or cheques. The success of the bank is attributed to policies and procedures that the bank followsfinancing (Syed M, 20). They include membership of the bank and credit information of the borrowers. The performance of the bank is evaluated using various ratios which include profitability ratios, leverage ratios and efficiency ratios(Galal A, 84). These ratios are used in the analysis of the business.
During the process of issuing loans, they must be secured of certain type of security. The securities include collaterals or guarantor. The loans that are given at certain interest rates and various loan terms are included which include the maturity date. The role of technology in the development of the Doha bank is also emphasized in this paper. Its customers are able to access the banking services with ease and faster, they are internet driven (Syed M, 35).
The services that the bank offers can be accessed from any part of the world. The paper also discusses the role the government for the growth and development of lending institutions in UAE. The government provides conducive environment and also provides financing to these institution Doha bank included (Galal A, 84). This has provided a good ground for the growth of the Doha bank as a small and medium commercial lending institution in UAE. IntroductionSmall and medium term commercial financing institutions play a significant role to the economic growth of a country and the region.
These institutions have become backbone of the finance in the UAE. This is because they are accessible to many people in the region. The procedures that are involved in order to secure a loan are not cumbersome. The short term loans are used to finance daily operation costs, they facilities for import activities and also suiting the needs of one’s business(Syed M, 32). The institutions embraces technology and therefore it becomes easier to the customers to be able to access the banking services with ease and from any point through the internet driven technology.
This has enhanced efficiency and convenience. Doha bank is a small and medium commercial financial institution in UAE. The bank offers financial services to its customers. The bank is guided by various policies and procedures when it issues loans to its customers. It is concerned with the credit worthiness of the lender. The bank does not lend to the customer who it has or has been classified as defaulter by other banks. The bank serve various customers who include; trading companies such as supermarkets andgroceries, service companies such as healthcare, food industry and transportation business.
The bank offers retail, commercial and corporate services(Syed M, 55).