Supply Chain Finance
The Supplier Finance Program (SFP) is a bilateral supply chain-financing programme under which Noor Islamic Bank (NIB) offers packaged finance facilities to the suppliers of large corporate companies (anchors). This finance is provided for those parts of the suppliers’ transactions, which have a linkage to the anchor, and is based in large part on the strength of the underlying buyer-supplier relationship.
- It is strictly supply chain financing, whereby facilities are made available to the supplier only for those specific sales to the recognized anchor, and the corresponding payment is made directly by that anchor to NIB.
- SFP is highly transactional in nature. By receiving purchase order/ invoice information from the anchor, NIB is able to advance funds to the supplier and track repayments against individual purchase orders/ invoices.
- The facilities under SFP are well structured, ensuring that both the pre-shipment and post-shipment parts of the trade transaction are captured.
PROGRAMME SPECIFICATIONS
Tenor:
Pre Shipment: Upto 90 days
Post Shipment: Between 15 and 365 days.
In cases where both Pre & Post shipment facilities are being extended, the end to end tenor not to exceed 180 days
Maximum Limit/Supplier:
A maximum limit of AED 30 Mio per supplier.
Transaction Initiation:
Either by the anchor or from the supplier after taking pre-approved "one time" documentation via hard copy, fax, or over internet / I Bank.
Evidence of transport:
In the case of post shipment financing, evidence of transport can vary from customer to customer depending upon the nature of the business and logistical realities.
Any of the following will be acceptable as an evidence of transport.
- Photocopy of the Lorry receipt, Truck receipt or Railway receipt
- Accepted Delivery report / note
- In the event that none of the above evidence of transport is available, we will accept Buyer’s confirmation on the invoice stating “Goods received”.
- Electronic acknowledgement of receipt of goods will be acceptable in case of companies who have implemented ERP and have B2B business models
