Bank Alfalah Islamic Supply Chain Financing Program aims to work with Corporates & their value chain partners to design customized solutions and products for their key buyers in order to optimize their working capital and provide liquidity. With a focus on strengthening SMEs and promote financial inclusion, we offer alternate short-term financing facilities to buyers, primarily to SMEs, based on their strength of relationship with the corporates. .
Salient Features:
- Dedicated & professional team to provide a satisfying solution and experience
- Coverage in all major cities of Pakistan
- Cutting edge technology platform for seamless operations
- Efficiency in transactions through real time settlements & readily available on MIS
- Limited & hassle-free documentation
- Non-collateralized short-term unsecured financing that are revolving in nature
- Cheaper source of working capital finance
Offerings under Supply Chain Financing:
Distributor Finance:
A financing arrangement through which Bank Alfalah Islamic offers customized finance package to selected distributors/dealers of large corporates to enable them to meet their funding requirement in an efficient & cost effective manner for procurement of goods/services from Corporates. The financing will be in different forms and is modeled in line with the various industries needs and viability. The distributor finance shall be offered in following three variants:
- Invoice based Finance
- Short term Finance
- Running Musharakah
The distributor financing shall be available for the above scenarios under the following mode of Islamic Banking products:
- Murabaha
- Musawamah
- Tijarah
- Istisna
- Salam
- Running Musharakah
- Letter of Guarantee/Letter of Credit
- Any other short term financing product approved or to be approved, may be offered as independent limits or as sub limits/interchangeable limits depending on customer need.
Why choose Bank Alfalah Supply Chain Finance product?
Advantages for Corporates:
- One stop solution for all your working capital requirements with integrated & customized solution for financing needs of your partners
- Availability of financing to your Supply Chain Partners resulting in higher sales, as the distribution chain may require funds from time to time during the sales cycle
- Strengthen relationship & reward loyalty of the buyer, in arranging the financing arrangement for their needs.
- Extending financing terms and receiving/make early payment (release the funds from the balance sheet resulting in improvement of EVA (economic value added) etc).
- Conversion of balance sheet item to an off-balance sheet liability
- Potential to ascertain greater efficiencies in the Corporate’s receivable management and cash management process
- Ability to introduce payment & collection discipline and monitor conduct of your value chain partners
Advantages for Buyers of Corporate (Distributors):
- Efficient turnaround time of financing approval & disbursement
- Access to liquidity & solution to working capital constraints
- Availability of incremental financing through the new arrangement, which otherwise is difficult on standalone basis for buyers
- Enhancement in capacity to build inventories and increase purchases
- Helps improving sales during peak/festival seasons
- Preferential rates and margin due to dependency on anchor
- Distributor will be able to increase profitability by availing Cash discounts from Corporate Anchors
