SME Financing Solutions

SME Financing Solutions


Last update on 19-08-2020

( NEW )


​Bank Albilad offers a financing program for micro, small and medium enterprises, which is distinguished to meet the different financing needs of customers for a period of up to 36 months.

  • Amount up to 15,750,000 Saudi Riyals 6-month grace period
  • Period up to 3 years
  • No administrative fees
Terms and conditions apply




​​Wide range of financing solutions that cater to all types of businesses​ !


Bank Albilad offers a wide range of financing solutions that cater to all types of businesses and can be tailored fit depending on their respective financing requirements.  Our products and services are available primarily for the following purposes:
  • ​Working Capital Financing  
  • Asset Financing 
  • Contract Financing 

Bai Alajel  Financing


Bai Alajel Financing is a financing product that provides for your business’ short to long-term financing requirements.  This financing structure is based on Murabaha whereby the Bank sells to customers a commodity or an asset which the Bank has purchased and acquired based on a promise received from the customer to buy in one stroke or installment. The selling price comprises the cost plus an agreed profit margin. 

 

Musharakah Financing 


Musharakah is an agreement between the Bank and a customer to contribute to a certain investment enterprise or the ownership of a certain property ending up with the acquisition by the customer of the full ownership. The profit or loss is shared as per the terms of the agreement.


​Financing ​Features


  • ​Shariah Compliant
  • Competitive rates and pricing conditions
  • Available at short-term to medium term financing tenors
  • Simplified documentation and credit process 
  • Accessible through our regional offices strategically located at Riyadh, Jeddah and Dammam



Documentation Requirements at Initial Application


  • Copy of ID/Iqama.
  • Copy of Commercial Registration
  • Copy of the enterprise’s foundation contract (if the enterprise is a company).
  • Feasibility study (for new projects)
  • Copy of audited financial statements (or In-house FS) for three years (for existing projects).
  • Other documents that the Bank may require 



How the financing profit margin is calculated ?


Tariffs and fees

​Product 

​* Annual Profit Rate

​Management Fees

​Maximum (or) Minimum Management Fees 
​Minimum 
Maximum ​
​Minimum 
​Maximum 


​No Minimum Amount 
 
​Bai Ajel 
​4%
​12%
​2%
​3.5%
​Musharakah 
​4%
​12%
​2%
​3.5%

* The above prices and fees are example to be effected by other factors such as SIMAH Report, Amounts & financing period

An example of how the Musharakah financing is calculated:


Example 1:


​Type of Financing
​Musharakah
​Financing Calculation Method
​Amount X Profit Rate/ 360 X No. of Days
​Amount
  1,000,000.00 
​Profit Rate
​5%
​Profit Calculation Method
​Biannual
​No. of Financing Days
​180
​Profit
​ 25,000.00

Example 2:


​Type of Financing
​Musharakah
​​Financing Calculation Method
​​Amount X Profit Rate/ 360 X No. of Days
​Amount
​ 1,000,000.00 
​Profit Rate
​7%
​​Profit Calculation Method

​​No. of Financing Days
​360
​​Profit
​69,999.99


Example 3:


​Type of Financing
​Musharakah
​​​Financing Calculation Method
​​Amount X Profit Rate/ 360 X No. of Days

​​Amount
​1,000,000.00 
​​Profit Rate
​11%
​​​Profit Calculation Method
​Quarterly
​​​No. of Financing Days
​90
​Profit
​24,499.99



An example of how the Bai Ajel financing is calculated:


Example 1:


​​Type of Financing
​Bai Ajel 
​Financing Calculation Method
​Amount X Profit Rate/ 360 X No. of Days
​​​Amount​1,000,000.00 
​Profit Rate
​7%
​​​​Profit Calculation Method
 
​No. of Financing Days
​360.00 
​​Profit
​70,000.00 

Example 2:


​Type of Financing
​Bai Ajel 
​Financing Calculation Method
​Amount X Profit Rate/ 360 X No. of Days
​​​​Amount
​1,000,000.00 
​Profit Rate
​10%
​​​​​Profit Calculation Method

​No. of Financing Days
​360
​Profit
​99,999.99


Example 3:


​Type of Financing
​Bai Ajel 
​Financing Calculation Method
​​Amount X Profit Rate/ 360 X No. of Days
​Amount
​1,000,000.00 
Profit Rate
12%
​Profit Calculation Method
​​No. of Financing Days
90
​​Profit
​29,999.99

  • Some financing products might use floating rate pricing
  • Financing limits and fees will be subject to regulations and other related terms and condition 
  • The above prices and fees are example to be effected by other factors such as SIMAH Report, Amounts & Funding period
  • The Disclosure is only for Small & Micro enterprises.





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