Supply Chain Finance

Meeting your trading obligations

Supply Chain Finance

Meeting your trading obligations

Supply Chain Finance

Meeting your trading obligations

AlRajhi Bank has successfully launched a full-fledged Supply Chain Finance Solutions SCF for our Corporate customers. AlRajhi Bank offer a comprehensive SCF program with a wide range of solutions backed by a strong technological platform available to the entire value chain of customers (both upstream & downstream). This is in line with Saudi's Vision 2030 of supporting private sector growth with variety of products and solutions.

 

(SCF) refers to facilities that are based on receivables purchase agreement with the client (Seller/(client’s suppliers), which makes AlRajhi Bank the sole owner of the receivables due from buyers, The purchase will be on a structured basis that will enable AlRajhi Bank to manage product, dispute, fraud and other risks that may result in non-payment by the Buyer. Customer assessment, receivables verification, concentration management, ledger reconciliation and control of customer payments are all key features of Supply Chain Financing products.

Supplier Finance / Reverse Factoring

Supplier Finance is aimed at open account trade where Importers/Buyers transact directly with their suppliers. This structure is a Buyer driven. Al Rajhi Bank - through Murabaha Finance – settles the supplier invoices/draft at sight, while collects the proceeds from the buyer at the maturity date.

Features and Benefits:

  1. Improves buyer cash flow and working capital.
  2. Improves days payable outstanding
  3. Competitive Financing price

Receivables Finance / Factoring

Receivables Finance product which consists of Invoice financing for the Supplier who have receivables outstanding from a large number of Buyers. This is a seller centric approach.

Features and Benefits:

  1. Improves seller cash flow and working capital.
  2. Improves the days sales outstanding(DSO)