Working Capital Finance
Our products are designed to meet working capital requirements of your business by facilitating procurement of raw materials, parts, supplies, and other inventory assets. Additionally, we can also assist in freeing up your liquidity through our Murabaha product to help you overcome day-to-day cash flow timing mismatches between payments and collections.
We offer a wide range of financing products to help you sustain and grow your business, including working capital solutions such as:
- Short-Term Finance
- Islamic Covered Drawing Account (Overdrafts)
- Finance Against Progress Payment
Receivables Finance
Receivables Finance is a service that provides businesses with early access to funds that are due from customers, improving liquidity and facilitating cash flow management. This financing facility offers you a fully compliant Shari'ah solution.
A finance solution offered to you through Tawarruq structure, where a business can avail immediate liquidity against their invoices. It unlocks the potential of your receivables, allowing you sufficient cash flow to grow your business. We also offer other services such as ledger management and collections services which allow you more time to focus on your sales.
- With recourse: the business remains liable if the customer fails to pay the invoice. This means that if the customer defaults, the financier can seek repayment from the business.
- Without recourse: the financier assumes the risk of non-payment by the customer. In this arrangement, the business is not liable if the customer fails to pay the invoice, offering greater risk protection.
- Immediate access to funds
- Collection management and credit control can be outsourced
- With recourse factoring typically offers lower fees due to the reduced risk for the financier
- Without recourse provides credit risk protection against non-payment of receivable by debtors
Whether you choose 'with or without' recourse, factoring can significantly improve your business's cash flow, provide credit management and lower associated risks.
Supply Chain Finance
Supply Chain Finance optimises cash flow by allowing businesses to avail extended credit terms for their purchasers while allowing the option for their suppliers to encash their receivables upfront. This creates a win-win situation for both buyers and suppliers by enhancing the efficiency of the supply chain financing. Our Shari'ah compliant SCF solution provides you with a Seller Lead financing option against the invoices approved by the buyer for you to improve cash flow without impacting the buyer's own liquidity.
- Strengthens the supply chain by providing liquidity to suppliers
- Does not affect the buyer's cash position as payment terms are extended
- Improves relationship with suppliers through financial support
Our Supplier Finance Solutions foster a strong and resilient supply chain, ensuing continuity and efficiency in operations while optimising working capital.
Back to Back Letter of Credits
In a Shari'ah compliant manners, our Back to Back Letter of Credit is a comprehensive financial instrument that serves as a guarantee for transactions between buyers and sellers in the international trade arena. This offering involves issuing an independent second LC in favor of the supplier, backed by the security of the original LC provided by the buyer. It's a pivotal solution for intermediaries in trade transactions, enabling them to mitigate risks and secure financing for procurement of goods before shipment to the final buyer.
• Tailored to the specific needs of intermediaries and traders
• Enhanced credibility with suppliers through bank guarantees
• Flexible terms to match the trade cycle of your business
Commercial Bank of Dubai's Back to Back Letter of Credit empowers your business to navigate the complexities of international trade with assurance and agility. Our dedicated team of trade finance experts works closely with your business to understand its unique challenges and opportunities, providing tailored solutions that not only meet your immediate financial needs but also support your long-term growth ambitions. With CBD, you gain a partner committed to enhancing your trade capabilities, enabling you to unlock new markets, optimize working capital, and build sustainable business success.
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