Credit Solutions
(Finance)
Riyad Bank
has used
all its
banking
expertise
and experience
to design
innovative
credit solutions
that meet
the unique
requirements
of our customers.
Overdraft
Account
A service
designed
to provide
business
customers
with highly
flexible
finance
to help
them meet
their contingent
obligations
and finance
their working
capital
on day-to-day
basis.
Loans
Riyad Bank
can provide
business
customers
with loans
to satisfy
their needs
for cash
at periodic
intervals
in the manner
that suits
their cash
flow cycle.
Islamic
Products;
Murabaha
Financing
This is
an Islamic
compliant
financing
tool where
the bank
acquires
a commodity
required
by the customer
before selling
it to the
customer
for a price
at a pre-agreed
margin.
Tawarruq
Financing
The Bank
sells a
commodity
it owns
to the customer
for a price
at a pre-agreed
margin,
then the
customer
(buyer),
if he wishes,
authorizes
the Bank
to sell
the commodity
to a third
party and
credit the
proceeds
of sale
to his account.
Istissna’a
Financing
Is an Islamic
mode of
financing
whereby
the Bank
(manufacturer)
manufactures
the product
(be it a
building,
mobilization,
etc.) upon
the request
of the (business)
customer,
in his capacity
as the “Istissna’a
seeker”,
and subject
to the specifications,
terms and
conditions,
quantities
and prefixed
price. The
Bank employs
a contractor/supplier
to make
or supply
the required
product.
When the
job is finished,
the Bank
takes delivery
of the finished
product
from the
contractor/supplier,
pays the
agreed price,
and then
delivers
the product
to the customer
at the prefixed
date.
Ijarah Financing
The Ijarah
financing
process
involves
the Bank
granting
a lease
on an asset
it owns
to a (business)
customer
in consideration
of a prefixed
rent with
the promise
of ownership
at the end
of the lease
period.
Musharakah
Financing
Is a mode
of financing
process
where the
Bank shares
with the
customer
the capital
required
for the
purchase
of commodities,
equipment,
machines
or properties
for a specified
period of
time under
a joint-venture
contract,
entered
by and between
both parties.
At the end
of contract,
the joint
venture
is liquidated
and profits
and losses
are shared
by the partners.
