Merchant Finance
Merchant financing program is designed to meet the financing requirement of single shutter entities /shops with merchant relationship of minimum 24 months with any acquiring bank in the country. Merchant Establishments/ Entities typically would include Retail Traders, Service Providers and Professionals. These merchant establishments could be Retailers constituted as sole proprietorships, partnerships, limited local companies, free zone companies, free zone enterprises, or branches/ subsidiaries of offshore entities/ groups.
The primary purpose of the finance will be to meet working capital requirements viz. purchase of merchandise from suppliers at optimal terms, sale of merchandise to customers on optimal terms etc. This will also be granted to fund business growth/ expansion related investments/ expenses for growth within the core line of business
Following are the different offerings which will form part of our product menu for the merchant financing:
- Islamic Covered Drawing.
- Business Banking Accounts.
- Business Installment Finance (Tawarukh).
- Trade facilities (Express Trade).
- Commercial Autos.
- Commercial & Industrial Mortgages.
Facility assignment will be a function of the customers Pos sales over the last 6 months through Pos terminals (plus the cash component reflecting in the bank statement) and will be decided as per the multiples (detailed in the product document) of the Average Monthly throughput based on the 6 months prior to the month of submission by the customer of the facility application.
