Working capital optimization
Flexible payment terms to customers
Finance solution that provides your customers with more flexible payment terms
Approximately 80% of trade between suppliers (sellers) and their customers (buyers) is financed through some form of credit, where the delivery of goods is immediate, and payment is deferred. Credit sales put pressure on the working capital of suppliers as they accumulate substantial receivables, thereby limiting their growth.
Raqamyah Supply Chain Finance provides a solution for both suppliers (sellers) and customers (buyers). When an invoice is issued by the supplier and the goods are delivered, Raqamyah immediately settles the invoice amount with the supplier (seller), while the customer (buyer) settles their payment to Raqamyah with flexible payment terms
How Supply Chain Finance Works
Raqamyah will register the supplier (seller) as an approved supplier
The customers (buyers) will register in Raqamyah, where their credit history will be assessed, and a revolving line of credit will be approved accordingly.
When the supplier (seller) raises an invoice, invoice amount will be instantly settled to the supplier (seller) and the customer (buyer) will settle to Raqamyah at a later date.
A factory (seller) that sells chemicals to distributors (buyers) with a 45-day credit period is faced with the challenge that many of its buyers require longer credit terms, such as 180 days. Through the Raqamyah Supply Chain Program, the factory (supplier) will instantly receive the value of the goods from Raqamyah when they are invoiced, while the distributor (buyer) will benefit from more flexible and easier payment terms.
Frequently Asked Questions
Warning: Do not get a finance beyond your repayment capacity.