Initial Working Capital
QDB offers this financing solution for Shariah-compliant SMEs in the start-up phase that require financing to run their operations.
Application process
What’s the process?
Application submission and initial review by client relationship officer
Evaluation by credit management unit
Providing financial support
Key features
What are the key financing terms?
- Financing covers expenses relating to payments for OPEX, consumables, and raw materials during the initial phase of the business including employees’ salaries, building rentals and Utilities.
Maximum Financing Allowed
1- Up to 6-month worth of OPEX
2- Up to 1 conversion cycle worth of raw material cost including procurement, logistics, insurance and customs fees
- Profit rate is up to 5 percent and will depend upon the project rating and strategic importance to the Qatari economy with a total tenor period of up to 15 years in line with the terms of long-term financing
Frequently Asked Questions
FAQs
What is Initial Working Capital financing?
A financing solution offered by QDB for Shariah-compliant SMEs in the start-up phase that require financing to run their operations.
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What does financing cover?
Financing covers expenses relating to payments for OPEX, consumables, and raw materials during the initial phase of the business including employees’ salaries, building rentals and Utilities.
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What is the maximum financing and repayment period?
Working Capital financing covers up to 6-month worth of OPEX and up to one conversion cycle worth of raw material cost including procurement, logistics, insurance and customs fees
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How is the project financing calculated?
The project financing needs will be evaluated by the client relationship department and then approved by the credit management unit
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What are the required documents?
- A valid commercial certificate
-100% personal guarantee coverage by one or more of the Qatari sponsors or proportionate guarantees by all partners or shareholders
- Takaful insurance policy
- 100% Corporate cheques and post-dated checks according to the project’s requirements
- Additional documents that may be required later.
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