How Can Audit Firms in Dubai Help SMEs to Obtain Business Finance in 2022?

Limiting the role of audit firms in Dubai to mere audits and financial statements analysis services makes no sense in 2022. Nowadays, leading audit companies in Dubai assist businesses by providing a wide range of services including financial advisory and corporate finance services. Most audit firms have a comprehensive grasp of their client’s business activities and financial health. Since they have all the required information, audit companies are able to provide robust advice on the selection of the source of finance.

However, the UAE has tightened compliance requirements recently, especially after the introduction of Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) laws. The tightened KYC norms implemented by banks and financial institutions. Audit firms in Dubai can advise SMEs on obtaining funds or loans without flouting the AML or other compliance requirements. Read ahead to know further:

1. Identification of the need for loans and finance

Audit firms go through the financial statements and other relevant documents that reflect the present state of the SME. After analysing the records and assessing their requirement, the audit firms in Dubai advise the SMEs on whether they are eligible for any loans. Most often SMEs in Dubai struggle to explain to the banks why they need funds or how much amount they need. However, audit firms can help SMEs solve this issue.

2. Identification of the appropriate source of fund

After analysing the financial capability of the SMEs, an audit firm can recommend the right source of finance for them. Audit firms can ascertain the amount that the SMEs can repay without any delay and help them choose the sources that offer funds at minimum costs.

3. Helps to get the approval of funds from lenders or bankers

Audit firms in Dubai can help SMEs accurately maintain and gather relevant records and statements, which will enable them to apply for loans and funds. Most banks and financial institutions demand financial statements from SMEs to understand their financial position and cash flow. It will enable the lenders to determine whether the SMEs can repay the loaned amount in due time. Audit firms in Dubai offer assistance to their clients so that the SMEs can approach the financial institutions without any struggle and obtain approval.

4. Assist in Obtaining funds within a short time

Most SMEs would require finance in a short time as they may be lacking adequate resources while searching for funds. An SME in need of urgent funds may not be able to meet its goals due to the limited resources. In situations like these audit firms may help the SMEs find the appropriate sources of finance without much delay. Audit firms have a wide range of clients and knowledge of the lenders and viable sources of funds, which may come in handy for SMEs.

5. Ensures proper mobilization of funds received         

Apart from helping SMEs to identify the right sources and obtain funds, audit firms in Dubai also help them to ensure the funds are properly used or not. Audit firms can help SMEs to monitor the flow of funds and channel it to areas of business where the funds are most required. Audit companies can also assist the SMEs to meet all the necessary compliance and legal requirements, which may help them avoid penalties or fines in the future.

Why do SMEs Need Assistance in Obtaining Funds?

As per the UAE Ministry of Economy, startups and SMEs account for more than 94% of the total companies in the country. In Dubai alone, startups and SMEs represent around 95 per cent of all companies, contributing around 40 % to the GDP. However, SMEs and startups find a lack of access to financing as the major factor that mutes their business growth. SMEs often find it harder to obtain credit from formal financial institutions due to factors such as information asymmetry, lack of previous credit history, formal documentation etc. Lenders are not willing to provide financing to SMEs due to these factors. Even if they obtain financing, SMEs have to go through extensive approval processes and KYC measures. However, audit firms in Dubai can assist SME owners to navigate such lengthy processes.

How can Jitendra Chartered Accountants Help SMEs?

Audit firms in Dubai not only offer accounting services but also provide comprehensive financial services to SMEs. Getting corporate financing is essential for SMEs to stay afloat in a highly competitive market like the UAE. Leading audit firms in Dubai such as Jitendra Chartered Accountants (JCA) can assist SME owners in meeting their financial requirements efficiently time- whenever they require such services.

Our highly qualified accounts and audit professionals would sit down with you and perform the necessary due diligence around the purpose of the loan. JCA’s experts can look into your AML-CFT compliance status and determine your ability to pass the strict CDD procedures implemented by the banks in Dubai. JCA can help you qualify your financial needs and help you create a winning loan submission.