SABB launches first of its kind supply chain finance solution
- Date: 22-Nov-2021
- Source: Arab News
- Sector:Financial Markets
- Country:Saudi Arabia
SABB launches first of its kind supply chain finance solution
The Saudi British Bank has launched a Shariah-compliant supply chain finance (payables finance) solution, which is the first of its kind in the Kingdom. The move is in line with Vision 2030âs initiative to increase financing for the SME sector and to meet the customersâ needs. The âpayables financeâ concept is based on buyer risk where the seller bears the cost of discounting. This product gives suppliers access to funding based on the credit standing of their buyers and without using their own credit lines. Majed Najm, deputy managing director of corporate and institutional banking at SABB, said: âThis innovative solution comes within the bankâs continuous endeavors to contribute to achieving the Kingdomâs vision and play our role as a major financial institution to stimulate economic and commercial growth.â He added: âIn addition to our approach to innovating quality banking products in the market, SABB is well positioned to leverage its local expertise and broad international presence through HSBCâs network to lead the market in order to support businesses in the Kingdom in line with Vision 2030. âThis solution will open up new avenues for customers to better manage their budget by classifying payables as commercial without classifying them as