Financing companies in UAE are allowed to do business according to the rules

According to the resolutions of Central Bank of the UAE, financing companies in UAE are allowed to do business according to the rules and regulations of Islamic Sharia. There are different financing activities available for finance companies:

·         For the consumption of numerous purposes, personal loans and advances to be extended.

·         For the favor of customers, relaxations shall be given in guarantees, credit openings, financing trade, and business.

·         Compensate with the investment of project or stock exchange matters.

The limit for bonds or certificate of deposit shall not increase the 7% of projects own capital. The total money paid by a finance company shall not be less than 35 Million AED.

Account receivable finance:

The capital on customer’s end recovered by companies is termed as receivable finance. The time passed after the amount was taken by customers effects the finance received by the company. This approach is used by the companies to recover their unreceived debts.

How it works:

Accounts receivables financing companies pay the client 70 to 90 percent (an agreed amount) of the amount as compared to the amount actually written on the invoices. Collecting the money from customers end is all their responsibility, you will be payed you remaining amount after subtracting the factoring fee from it.

The agreed amount varies from company to company and case to case. Account receivables pending on bigger organizations can be larger than the invoices owed by small companies. If the invoices are old, they worthless. Factoring companies offer bigger amounts in return if the money to be recovered easily. There may be many complications in the process of recovering causing a decrease in the amount received and the increase in the factoring fee.

Finance companies UAE:
 
For the ease of customers, financing has made easy in UAE. If you need funding for your business you would not have to wait so long or fill up the formalities. Just follow the simple procedure and keep your cash flowing again. This approach helps the businesses to earn more profits and repay the financing bodies as early as possible.