
Al Etihad Credit Bureau’s credit score is calculated historical data from banks and finance companies.
by Kudakwashe MuzoriwaEtihad Credit Insurance’s (ECI), the UAE Federal export credit company has partnered with Al Etihad Credit Bureau (AECB) to use the firm’s credit scores to support and strengthen SMEs in the domestic trade.
Massimo Falcioni, the CEO of ECI, said, “Our subscription with AECB is a key strategic step in that direction, as it will aid ECI to offer domestic trade credit limits to local UAE companies, easing their access to bank funding through trade receivables discounting.”
AECB, a public joint-stock company owned by the UAE Government is mandated to regularly collect credit information from financial and non-financial institutions in the UAE. AECB uses the collected credit information to calculate credit scores and produce credit reports that are made available to individuals and companies in the UAE.
The duo stated that AECB’s credit score ranges from 300 to 900 and measures the likelihood of an individual or company to default within the next 12 months.
“Our mission is to ensure that no viable UAE exporter faces inconvenient obstacles due to lack of trade credit from the private market or lack of access to financing solutions,” said Falcioni.
Companies looking to avail of ECI’s credit insurance solutions, ECI will use the data from AECB to evaluate the creditworthiness of the buyers, thus helping the local trader in making an informed business decision.
“Utilising information from Al Etihad Credit Bureau by entities like ECI for risk management will no doubt support the UAE’s credit insurance landscape by facilitating access to credit and improving payment behaviours along the way,” added Marwan Ahmad Lutfi, the CEO of Al Etihad Credit Bureau.
The ECI solution helps both the buyers and suppliers by adding confidence to boost trade between both the parties based on reliable data and risk management procedures that will mitigate risk and reduce the probability of default.
MOST READ
BUSINESS
COVID-19 poses downside risks to Egyptian banksBUSINESS
UAE firms launch Covid-19 economic aid packagesBUSINESS
Saudi Arabia plans to boost oil export to 10...BUSINESS
Aldar to invest AED 2 million in Abu Dhabi...BUSINESS
Saudi Aramco posts a 21 per cent decrease in...BUSINESS
Oil drops 31 per cent as price war erupts...BUSINESS
ING Groep plans to sell its Turkish unitBUSINESS
Bahrain considers stake sell in oil assetsBUSINESS
NMC Health hires Moelis for debt restructuringBUSINESS
Saudi Aramco prepares for international listingBUSINESS
SABB seeks to boost corporate lendingBUSINESS
Egypt plans to resume IPOs of parastatalsBUSINESS
SHUAA Capital reports a net profit of AED 45...BUSINESS
HSBC considering exiting from Turkey