Solutions
Receivables finance
Your approved invoice becomes cash today, and settles when your customer pays on its usual date.
Definition
What it is
Receivables finance means taking most of the value of an approved invoice now, instead of waiting sixty or ninety days. The invoice itself is the centre of the transaction, so there is no property charge and no share of your company to give up.
It is not a loan against your company; it is a transaction on an existing receivable. Assessment looks at the buyer's strength and the soundness of the invoice before it looks at the size of your business, which is what makes it reachable for companies conventional bank lending struggles with.
Mechanics
How it works
Who
The supplier
What
Submits a cleared e-invoice issued to a corporate or government buyer
When
After delivery and approval
Who
Fkah
What
Verifies the cryptographic stamp and ZATCA hash chain, and registers the invoice so it cannot be financed twice
When
Before any financing
Who
Fkah
What
Shows the advance, the fee and the tenor, then transfers the amount to the company's IBAN
When
After the supplier agrees
Who
The buyer
What
Pays the invoice on its usual date; the advance and fee settle and the balance goes to the supplier
When
On the invoice due date
Confidential or disclosed
The only difference is whether your customer knows. Both are used in the market, and each affects the cost.
Confidential
Collections stay in your name, your relationship with your customer does not change, and no notice reaches it. The risk on Fkah is slightly higher, and that shows in the pricing.
Disclosed
The buyer is notified that the invoice has been assigned and pays into the account named in the notice. The clarity lowers the risk, and usually improves the price.
Fit
Who it suits
- B2B companies with a Saudi CR and at least [TODO] months of trading
- Businesses selling to corporate or government buyers on 30 to 120 day terms
- Businesses issuing ZATCA-cleared e-invoices
- Businesses that need intermittent cash tied to invoices, not a fixed limit sitting there all year
Cost
What it costs
The cost is a rate on the advanced amount only, for the actual days until settlement. A shorter invoice costs less, and a stronger buyer brings the price down.
Priced per transaction, with no sign-up fee and no monthly fee. Four things move the price: the buyer's strength, the tenor, the size of the amount, and the track record behind it. The cost is shown in full before you confirm, and Fkah's own rates will be published at launch.
How supply chain finance is pricedQuestions about this product
Will my buyer know?
Is this a loan?
What if my customer pays late?
How do you prevent the same invoice being financed twice?
Next step
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