Working Capital Financing
QDB fills the Net Working Capital Gap of a business in form of a short-term revolving facility to help finance current assets related to the core business
Application process
Application submission and initial review by customer relationship officer
Application assessment by internal credit unit
Providing financial support
Key features
What are the key financing terms?
- Financing covers current assets related to the core business including accounts receivable, domestic bill discounting, raw material, OPEX and inventory.
- Maximum funding up to 100% of the approved facility limit (revolving) provided the business maintains minimum Net Working Capital of 25% calculated as Current Assets – Current Liabilities as of last audited year.
- Profit rate of up to 1% - 5% based on the pricing model with a financing period of 1 year that can be extended for a second year
Frequently Asked Questions
FAQs
What is Working Capital Financing?
It is a financing solution offered by QDB to fill the Net Working Capital Gap of a business in form of a short-term revolving facility which helps companies finance current assets related to the core business
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What does financing cover?
Financing covers current assets related to the core business including accounts receivable, domestic bill discounting, raw material, OPEX and inventory. Short term investments un- related to business and/or not required for the business as well as obsolete inventories/receivables are not considered for financing.
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What is the financing value and duration?
Financing covers up to 100% of the approved facility limit (revolving) provided the business maintains minimum Net Working Capital of 25% calculated as Current Assets – Current Liabilities as of last audited year. Financing is for a period of 1 year that can be extended for a second year.
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How is the financing value calculated?
Financing will be evaluated by QDB’s client relationship department and then approved by the credit management unit
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What are the required documents?
• 100% corporate cheque coverage
• Post Dated Cheques as per project guidelines or as determined by ICC
• 100% personal guarantee coverage by one or more of the Qatari sponsors or Proportionate guarantees by all partners / shareholders
• Additional documents that may be required later
• Post Dated Cheques as per project guidelines or as determined by ICC
• 100% personal guarantee coverage by one or more of the Qatari sponsors or Proportionate guarantees by all partners / shareholders
• Additional documents that may be required later
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