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Ahli United Bank (AUB) launched the 'Supplier Finance' programme, as part of its continuous efforts to support the growth of small and medium business enterprises (SMEs) in the kingdom.
The 'Supplier Finance' programme provides working capital finance to businesses that are supplying goods or services to large companies or Government bodies and have a successful track record with their customers.
AUB is the first commercial bank in Bahrain to provide this unique facility.
The Supplier Finance programme provides a strong impetus to small suppliers to grow their business by accessing bank finance on relatively easy terms.
AUB Group senior deputy chief executive Michael Collis said: "The 'Supplier Finance' programme has some unique features which will help the SME business community access bank finance easily at an attractive price."
Mr Collis said: "SMEs make an important contribution to the national economy and have the potential to create employment opportunities for a large section of the population.
"In addition, the business potential that this sector presents makes it imperative for banks to pursue this sector for future business growth.
"This product is one of the several initiatives being planned by AUB specifically for the SME sector."
Under the programme, AUB will provide finance to companies to help them purchase raw materials or stocks at initial stages provided they have firm orders from customers on hand.
Suppliers will have the option of availing both fund based and non-fund based facilities under this programme. Finance facilities will be available up to a maximum period of six months with a cap on the maximum amount that can be availed. The process and documentation required for this facility are simple and well-defined and decisions on applications will be quick. This product is expected to help SME businesses in the kingdom gain the confidence to take on larger contracts and grow their business manifold.
