Mashreq, a financial institution in the MENA region, has partnered with NEO PAY, a digital payments provider in the UAE, to introduce a Point-of-Sale (PoS) lending solution for SME merchants in the UAE.
This collaboration allows merchants to meet both their payment processing and funding needs through the NEO PAY platform.
This initiative follows Mashreq’s recent sale of a majority stake in NEO PAY for US$385 million, as part of the bank’s strategy to enhance its digital financial services.
Vibhor Mundhada, CEO of NEO PAY, commented:
“We are excited to introduce our PoS lending solution, which offers SME businesses a simple and flexible way to access financing. With this service, merchants can secure quick funds and improve cash flow, helping them grow in an ever-changing market.”
The new lending facility enables merchants to access financing based on their sales data, avoiding the lengthy approval processes and traditional credit checks.
Repayments will be linked to sales, ensuring that loan instalments match revenue, which can ease financial pressure during slower sales periods.
The facility will help SMEs secure working capital for inventory, marketing, or expansion needs without waiting for approval from traditional lenders.
Rajeev Chalisgaonkar, Head of Business Banking and NEO BIZ at Mashreq, said:
“This partnership aims to provide flexible and affordable PoS lending solutions, with instant loan approvals, to ensure that businesses have access to funding when needed. Our lending programme is designed to grow with the merchants’ sales, supporting their expansion plans.”
Featured image: Vibhor Mundhada and Rajeev Chalisgaonkar
