18 Questions
What is the primary purpose of the SCF provider validating the authenticity of the invoice and confirming the amount owed?
To ensure compliance with the terms of the SCF program
How do buyers benefit from extended payment terms negotiated with their suppliers?
By improving their cash flow and liquidity
What is the primary purpose of the reconciliation and reporting process in the SCF program?
To track supplier performance and optimize working capital management
What is the incentive for suppliers to participate in the SCF program?
Discounts offered by the buyer for early payment
What is the outcome for the supplier when they receive early payment through the SCF program?
Improved cash flow and liquidity
Why do buyers offer discounts to suppliers in the SCF program?
To provide an incentive for suppliers to participate in the program
What is the primary benefit of Mudarabah financing for the entrepreneur?
Limited personal liability for debts and liabilities
What is the primary consideration in determining the terms and conditions of a Mudarabah partnership?
Shariah principles and guidelines
What is a key characteristic of Mudarabah financing that allows it to be applied to various sectors?
Flexibility to accommodate diverse business models
What is the primary objective of the profit-sharing ratios in a Mudarabah partnership?
To ensure equitable treatment and mutual consent
In a Mudarabah partnership, what is the primary responsibility of the entrepreneur?
Implementing the business plan and operations
What is the primary focus of Mudarabah financing in terms of business loan purposes?
Diverse business models and investment opportunities
What factors determine the credit limit of an overdraft facility?
Company's creditworthiness, financial stability, business size, and banking relationship
How is interest charged on an overdraft facility?
Only on the amount of funds actually utilized
What type of collateral may be required for an overdraft facility?
Secured or unsecured, depending on the creditworthiness of the corporate client
What can an overdraft facility be used to cover?
Temporary cash flow shortages, unexpected expenses, or fluctuations in working capital requirements
What is the typical repayment structure for overdraft facilities in the UAE?
Repayment of the outstanding balance periodically, usually monthly
What determines the interest rate on an overdraft facility?
The terms of the agreement, prevailing market rates, and the borrower's credit profile
Discover the process of supply chain finance, including verification and approval of early payment requests. Learn how SCF providers validate invoices and ensure compliance with program terms, and how funding and payment are facilitated.
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