dubai computer group: bank finance should not be a mystery! presentation by
TRANSCRIPT
DUBAI COMPUTER GROUP: BANK FINANCE SHOULD NOT
BE A MYSTERY!
Presentation By
The Background: What it is going on in Dubai Banking?
Liquidity Good
Risk Appetite Does Not Match High Liquidity
Restructuring Everywhere
High Inefficiency, Fat And Spoilt Industry
Inexperienced Relationship Managers
Few Banks Control 80% Of Business
How banks perceive ALL SMEs…..
SMEs are perceived as high risk…
High Concentration Risks
Key Man Risk
Limited Fall-back Options
Poor Financial Management & Transparency
Unable to Articulate Financing Needs
Skip Risk
How are Computer & Peripherals Distributors Different?
Banks’ perception of Computer Street:High delinquency, high risk
Opaque business – who are the real clients?
How to capture cash flows?
High risk of ‘Accommodation’ transactions
Industry business risks high
Industry Business Risks
Commoditised Business
High Stock Obsolescence
Low Entry Barriers
Low Margins
Price Volatility
In-House Risks: On Buyer and Supplier Sides
High Skip Risk
So what can you do?
Good Auditor
Ask For The Right Facilities Suiting Your Business Model
Build A Good Case: Testimonials From Buyer And Suppliers
Look At Credit Insurance
Go To The Right Banks
Take Proper Professional Advice
Examine New Areas Like Trade-Flow Of DMCC
Showcase Your Strengths
• Identify Your Strengths. Consider Whether You Have:
High Quality Suppliers / Buyers
Some Identifiable USP
Established Track Record With Suppliers & Clients
Good History of Managing Stocks & Receivables
Number of Repeat Clients
Testimonials From Suppliers/Clients
Process Qualifications From International, Reputed Bodies
Financials Audited By Reputed Auditors
What can DCG do?DCG can play a very critical role in assisting members
Build a strong DCG with teeth – confidence builder
Better negotiating power all around
Strict criteria for joining and remaining member
Draw up list of approved auditors, negotiate special rates
Explore TradeFlow with DMCC
Interact more with banks – educate and allay fears
Explore credit insurance
Vianta:Better Bank Financing.
Quickly Delivered.
Thank You!
You can contact us onVianta Advisors JLT#2604, Mazaya Business Avenue AA1,Jumeirah Lakes Towers, Dubai, United Arab Emirates
Vikram VenkataramanE:[email protected]:+971506451048; +971551961234 Shekhar IyerE:[email protected]:+971559804535