First Abu Dhabi Bank (FAB) introduced its supply chain finance (SCF) program in Saudi Arabia to companies to boost regional trade finance, Wam reports. The program allows companies to monetize their receivables at competitive rates and get instant payments, without needing to borrow funds in a heightened interest rate environment, Wam said. Alfanar Construction already signed an agreement with FAB under the program, the news agency added.

SOUND SMART- Receivables finance is a trade finance method businesses can use to receive funds that match the amounts owed to it by its customers in outstanding invoices.

There’s a lot we don’t know: It’s not clear what industries the program is targeting or what the size of the financing agreements could be, though Alfanar’s treasury manager said the program helps improve “cashflows across the entire supply chain.”

What they said: “The launch of our supply chain finance program in KSA is a significant step forward in our regional expansion strategy,” Country CEO of First Abu Dhabi Bank (FAB) in Saudi Arabia Fahad Al Juwaidi said. “Our state-of-the-art FABeSCF platform and fully automated solutions will provide our clients with a seamless and integrated experience that strengthens connectivity across the entire supply chain,” he added.

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