SABB launches novel supply chain finance solution

The Saudi British Bank (SABB) has launched a shariah compliant supply chain finance (Payables Finance) solution, a first transaction of its kind in the kingdom. in line with Vision 2030 initiative to increase financing to the SME sector and help meet the customers’ needs.

The Payables Finance concept is based on a buyer risk where seller is bearing 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.

On the innovative scheme, Majed Najm, Deputy Managing Director of Corporate and Institutional Banking at SABB, said: "This comes within the bank’s continuous endeavors to contribute to achieving the kingdom’s vision and play our role as a major financial institution to stimulate economic and commercial growth."