Technology and Digitalization Solution Financing
Technology and Digitalization Solution Financing product is to provide financing to SME’s seeking to acquire technology solutions (hardware, software & data) to digitalize their operations, thereby ensuring business continuity and supporting companies to upscale their current machine technology to increase productivity or efficiency of a business process. Eligible applicants can also avail better financing terms
What's the process?
Application
Client’s digital readiness verification
Digital solution assessment
Financial and Advisory support
Salient features
- Financing of technology solutions (hardware, software or both)
- Preferential pricing with rate starting from 0%
- Longer financing repayment period with extended grace period
- Access to technology expert advice
Frequently Asked Questions
FAQs
What is QDB’s digitalization product?
Key objective of this product is to provide financing to SMEs seeking to acquire technology solutions (hardware, software, data) to digitalize their operations and to upscale their current machine technology.
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What are the components that are financed?
Financing will cover the cost of acquiring different types of technology solutions that leverage Hardware (such as intelligent machines, robotics, automation, sensors, computers, etc.) or Software (IT systems, productivity software, on premise or cloud based) or Data (operational or customer data) or any combination thereof to meet the desired productivity or efficiency
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Who is eligible for this financing?
- Qatar-based SMEs operating in QDB mandated sectors
- Existing businesses seeking to automate or digitalize production line or operation processes.
However companies should qualify based on digital readiness as per below:
1. QDB will assess the digital readiness of the SME by using the Digital Maturity Assessment Tool.
2. For digitally matured SMEs, Digital Solution Financing Assessment Tool will determine whether the solution required is complex or simple.
- Existing businesses seeking to automate or digitalize production line or operation processes.
However companies should qualify based on digital readiness as per below:
1. QDB will assess the digital readiness of the SME by using the Digital Maturity Assessment Tool.
2. For digitally matured SMEs, Digital Solution Financing Assessment Tool will determine whether the solution required is complex or simple.
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Where I can find more details on the assessment tools?
To know the company`s digital maturity level, clients can complete the Digital Maturity Level Assessment Tool by clicking here or reach out any of our relationship managers
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What is the total financing amount per company?
Up to 85% of the total project cost
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What is the tenor and grace period for the Financing?
Up to 15 years including up to 3 years grace period
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What beneficiary collateral is needed?
• Pledge of business (CR)
• First degree pledge on assets financed by QDB
• 100% personal guarantee coverage by one or more of the Qatari sponsors or Proportionate guarantees by all partners / shareholders of their share (in alignment with QCB instructions issued regarding guarantees)
• If the sponsor is a Qatari corporation, 100% guarantee from Qatari corporate sponsors
• Bank guarantee from foreign sponsor, if Qatari partner does not provide for 100%
• Corporate cheques/PDCs will be required based on ICC decision
• Takaful Insurance policy with QDB as first beneficiary.
• First degree pledge on assets financed by QDB
• 100% personal guarantee coverage by one or more of the Qatari sponsors or Proportionate guarantees by all partners / shareholders of their share (in alignment with QCB instructions issued regarding guarantees)
• If the sponsor is a Qatari corporation, 100% guarantee from Qatari corporate sponsors
• Bank guarantee from foreign sponsor, if Qatari partner does not provide for 100%
• Corporate cheques/PDCs will be required based on ICC decision
• Takaful Insurance policy with QDB as first beneficiary.
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What are the required documents/ paperwork that need to be submitted?
Completely filled-out Application Form including Applicant (Obligor) QID, Active CR and relevant company details for digital readiness assessment amongst others
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What will be the pricing?
The beneficiaries will be charged as per the Bank's Schedule of Charges with Profit Rate as below:
| Financing Period | Profit rate |
|---|---|
| Year 1 | 0% |
| Year 2 | 1% |
| Year 3 | 2% |
| Year 4 & more | 3-5% |
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