Dubai: Etihad Credit Insurance, the UAE’s export credit agency offering export financing, said on Sunday it will use credit scores to support local Small and Medium Enterprises (SMEs).

Etihad Credit Insurance will now be cooperating with Al Etihad Credit Bureau to expand its portfolio to include local traders. The Credit Bureau is a federal entity providing credit information and credit scores to businesses in the country.

The credit reports will be used by Etihad Credit Insurance to assess the creditworthiness of domestic buyers, and will provide them with credit coverage to help them expand locally. This will help different parties trading with each other in making an informed decision, mitigate risks, and reduce the probability of defaults.

“Our mission is to ensure that no viable UAE exporter faces inconvenient obstacles due to lack of trade credit from the private market or the lack of access to financing solutions,” said Massimo Falcioni, chief executive officer of Etihad Credit Insurance.

He added that the better the credit score of a company is, the easier it will be to avail of better insurance solutions.