20 June 2013
Muscat: Oman Development Bank (ODB), the leading bank in the field of sustainable financing in the Sultanate, has announced the launch of a programme to provide working capital to small and medium enterprises (SMEs).
A scheme for providing free consultations in order to prepare financial accounts of the SMEs in Oman by appointing financial and accounting consulting firms has also been introduced.
This step comes as part of the efforts exerted by the bank to support the government's plans to promote SMEs. The launch of such programme also highlights the continuous support rendered by ODB for such enterprises by way of granting working capital facilities and advantages that help in the growth and development of the SME sector.
Samir Saied, general manager of ODB, commended the efforts exerted by the government of His Majesty Sultan Qaboos bin Said, to provide all possible means for developing the small and medium enterprises through legislations and regulations; in addition to establishing promotional entities that support this vital sector.
Empowering SMEs
"ODB continuously keeps pace with the approaches and plans of the Omani government in subsidising and empowering the SMEs through programmes and facilities that contribute into supporting such efforts according to its prerogatives and role in the developmental financing.
The bank always seeks to launch programmes that contribute into promoting the SME sector in the country in a way that ensures the sustainability of such efforts and giving high value-addition to the national economy and the community," he said.
The programme will provide free accounting consultations for the owners of SMEs including bookkeeping, and other financial aspects needed by the companies in such important field. Samir said that the management of the bank noticed that there are many SMEs that do not have easy access to working capital loan due to lack of financial information. Therefore, the management thought about creating a programme that encourages the culture of proper book keeping for owners of SMEs to benefit from the facilities provided by the bank. He pointed out that such services will be provided through small local accounting firms.
Free service
"Out of its belief in the importance of the financial and accounting aspects for the SMEs, ODB will provide this service free of charge in the first year for the entities that desire to benefit from working capital facilities provided by the bank."
Samir explained that ODB will engage accounting firms to guide SMEs on bookkeeping through which working capital requirements can also be easily assessed. These firms will also provide advisory services on management and operation of the business unit as and when necessary.
Identified training needs not addressed by the appointed professional accountant will be provided by another agency or SME support institutions of the country.
"Entering into the programme is entirely at the SME's choice. However, bookkeeping will be mandatory, if any SME requires working capital facilities from ODB. Bookkeeping and accounting fees for the first year will be borne by ODB. Working capital facilities are subject to review annually, hence accounting information will have to be provided continually as long as the facilities are required."
Also it is not compulsory to utilise the accounting firms for book keeping for SMEs who have existing reliable systems and such SMEs have to provide audited financial statements from reputed auditing firms to avail working capital facilities from ODB.
He revealed that the types of working capital facilities initially to be provided by ODB to SMEs are bill discounting, loans against trust receipt and advance against receivables.
SMEs that do not have proper accounting systems and desirous of availing this ODB sponsored scheme of accounting services may approach the concerned branch manager of ODB to avail the book keeping and accounting services.
Muscat: Oman Development Bank (ODB), the leading bank in the field of sustainable financing in the Sultanate, has announced the launch of a programme to provide working capital to small and medium enterprises (SMEs).
A scheme for providing free consultations in order to prepare financial accounts of the SMEs in Oman by appointing financial and accounting consulting firms has also been introduced.
This step comes as part of the efforts exerted by the bank to support the government's plans to promote SMEs. The launch of such programme also highlights the continuous support rendered by ODB for such enterprises by way of granting working capital facilities and advantages that help in the growth and development of the SME sector.
Samir Saied, general manager of ODB, commended the efforts exerted by the government of His Majesty Sultan Qaboos bin Said, to provide all possible means for developing the small and medium enterprises through legislations and regulations; in addition to establishing promotional entities that support this vital sector.
Empowering SMEs
"ODB continuously keeps pace with the approaches and plans of the Omani government in subsidising and empowering the SMEs through programmes and facilities that contribute into supporting such efforts according to its prerogatives and role in the developmental financing.
The bank always seeks to launch programmes that contribute into promoting the SME sector in the country in a way that ensures the sustainability of such efforts and giving high value-addition to the national economy and the community," he said.
The programme will provide free accounting consultations for the owners of SMEs including bookkeeping, and other financial aspects needed by the companies in such important field. Samir said that the management of the bank noticed that there are many SMEs that do not have easy access to working capital loan due to lack of financial information. Therefore, the management thought about creating a programme that encourages the culture of proper book keeping for owners of SMEs to benefit from the facilities provided by the bank. He pointed out that such services will be provided through small local accounting firms.
Free service
"Out of its belief in the importance of the financial and accounting aspects for the SMEs, ODB will provide this service free of charge in the first year for the entities that desire to benefit from working capital facilities provided by the bank."
Samir explained that ODB will engage accounting firms to guide SMEs on bookkeeping through which working capital requirements can also be easily assessed. These firms will also provide advisory services on management and operation of the business unit as and when necessary.
Identified training needs not addressed by the appointed professional accountant will be provided by another agency or SME support institutions of the country.
"Entering into the programme is entirely at the SME's choice. However, bookkeeping will be mandatory, if any SME requires working capital facilities from ODB. Bookkeeping and accounting fees for the first year will be borne by ODB. Working capital facilities are subject to review annually, hence accounting information will have to be provided continually as long as the facilities are required."
Also it is not compulsory to utilise the accounting firms for book keeping for SMEs who have existing reliable systems and such SMEs have to provide audited financial statements from reputed auditing firms to avail working capital facilities from ODB.
He revealed that the types of working capital facilities initially to be provided by ODB to SMEs are bill discounting, loans against trust receipt and advance against receivables.
SMEs that do not have proper accounting systems and desirous of availing this ODB sponsored scheme of accounting services may approach the concerned branch manager of ODB to avail the book keeping and accounting services.
Times of Oman 2013
