Local Bill Discounting
Local Bill Discounting is a Sharia-compliant solution designed to give Qatar-based businesses fast access to liquidity. By financing unpaid local invoices, the product helps companies maintain steady cash flow, meet short-term obligations, and build stronger relationships with local suppliers and buyers.
Local Bill Discounting
What are the main features?
- Available for invoices supported by Local Purchase Orders (LPOs), Letters of Credit (LCs), contracts, or delivery notes.
- Sharia-compliant financing in line with Islamic principles.
- Financing of up to 90% of the invoice value.
- Competitive profit rate ranging from 3% to 5% per annum.
- Flexible tenor tailored to business needs.
Application Process
What’s the process?
The client (seller) obtains a quotation with deferred payment terms.
The client submits the quotation to QDB for financing.
Availability of goods is verified.
QDB purchases the goods from the client at a discounted price.
QDB appoints the client as an agent through a separate agency contract.
QDB disburses cash to the client based on the commercial invoice.
Frequently Asked Questions
What is Local Bill Discounting?
It is a financial solution offering liquidity by discounting unpaid local invoices.
Was it useful? Please rate
Who can apply?
Qatar-based businesses with eligible local invoices.
Was it useful? Please rate
What invoices are eligible?
Those supported by LPOs, LCs, contracts, or delivery notes.
Was it useful? Please rate
How much financing can be obtained?
Up to 90% of the invoice value.
Was it useful? Please rate
What is the applicable profit rate?
Between 3% and 5% per annum.
Was it useful? Please rate
What is the repayment tenor?
The tenor is flexible and aligned with the maturity of the invoice.
Was it useful? Please rate
How do I apply?
You can apply by submitting your invoice and supporting documents to QDB through the designated financing channels.
Was it useful? Please rate
What are the required documents?
- 100% personal guarantee coverage by one or more of the Qatari sponsors or bank guarantee from foreign sponsor if Qatari partner doesn't provide for 100%
- 100% corporate cheque coverage and post-dated Cheques as per project guidelines.
- Additional documents that may be required later.
Was it useful? Please rate
