Supply Chain Finance
Bank Alfalah’s Supply Chain Financing Program aims to work with Corporates & their value chain partners to design customized solutions for key buyers and suppliers to provide structured financing products in order to optimize working capital and provide liquidity. With a focus on strengthening SMEs and promote financial inclusion, we offer alternate short-term credit packages to make available financing facility to both your suppliers and buyers, primarily to SMEs, based on their strength of relationship with the Corporate.
For this purpose, Bank Alfalah has engaged IFC to provide advisory services on Supply Chain Financing arrangements following global best practices to boost access to funding for SMEs in this fast paced economic growth
Salient Features:
- Dedicated and professional team to create solutions & deliver experience
- Coverage in all major cities of Pakistan
- Cutting edge technology platform for seamless operations
- Efficiency in transactions through real time settlements & readily available to MIS
- Limited & hassle-free documentation
- Non-collateralized short-term unsecured loans that are revolving in nature
- Cheaper source of working capital finance
Our Products
Distributor Finance
A financing arrangement through which Bank Alfalah offers customized finance package to select distributors/dealers of large corporates to enable them to meet their funding requirement in an efficient & cost effective manner for procurement of good/services from Corporates.
Reverse Factoring
A bilateral program, which offers tailor made package to select suppliers/vendors of Corporate to finance their receivables, providing them with access to finance & bridging their working captail needs to increase capacity of inventory without effecting their balance sheet.
Why choose Bank Alfalah’s Supply Chain Finance products?
Advantages for Corporates:
- One stop solution for all your working capital problems with integrated & customized solution for financing needs of your partners
- Availability of financing to your Supply Chain Partners resulting in higher sales
- Strengthen relationship & reward loyalty of the buyer/seller, in arranging the financing arrangement for their needs
- Extending credit terms and receiving/make early payment, release the funds from the balance sheet resulting in improvement in EVA etc.
- Conversion of balance sheet item to an off-balance sheet liability.
- Potential to ascertain greater efficiencies in the Corporate’s receivable management and cash management process.
- Ability to introduce payment & collection discipline and monitor conduct of your value chain partners
Advantages for Buyers:
- Efficient turnaround time of loan approval & disbursement
- Access to liquidity & solution to working capital constraints
- Availability of incremental credit through the new arrangement, which otherwise difficult on standalone basis for buyers
- Enhancement in capacity to build inventories and increase purchases
- Helps improving sales during peak/festival season
- Preferential rates and margin due to dependency on anchor
Advantages for Suppliers:
- Efficient turnaround time of loan approval & disbursement
- Access to liquidity & solution to working capital constraints
- Availability of incremental credit through the new arrangement, which otherwise is difficult on standalone basis for suppliers/dealers/distributors
- Ability to increase profitability by availing Cash discounts from Corporate Anchors
- Enhancement in capacity to hold high inventories and increase sales
- Preferential rates and margin due to dependency on anchor
