Bank Alfalah Limited To Provide Financing For Small, Medium-Sized Dealers Of Pakistan Cables

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Per the agreement, the bank will introduce short-term financing options to Pakistan Cables’ dealers, enabling them to make payments back to the cable manufacturer

2024-05-09T14:41:50+05:00 News Desk
Bank Alfalah Limited To Provide Financing For Small, Medium-Sized Dealers Of Pakistan Cables
Bank Alfalah Limited To Provide Financing For Small, Medium-Sized Dealers Of Pakistan Cables

Karachi, May 9, 2024 - Bank Alfalah Limited, one of Pakistan's leading commercial banks, has entered into an agreement with Pakistan Cables Limited to provide Supply Chain Financing to the latter’s authorised dealers. The signing ceremony, held at Bank Alfalah's Head Office, marks a significant milestone in facilitating businesses for financial inclusion within the corporate sector by offering financing to small and medium-sized dealers that traditionally have to borrow at high rates with strict collateral requirements.

The ceremony was attended by officials from both organisations, including President and CEO Bank Alfalah, Atif Bajwa and CEO Pakistan Cables, Fahd Chinoy. The collaboration aims to address the evolving needs of businesses amidst an uncertain economic landscape, offering tailored solutions to optimise cash flow management without burdening companies with additional financial leverage.

In line with this collaboration, Bank Alfalah will introduce short-term financing options to Pakistan Cables’ dealers, enabling them to make payments back to the cable manufacturer. This initiative is designed to alleviate the financing costs associated with tied-up receivables, thereby enhancing Pakistan Cable’s cash cycle and operational efficiency.

Through Bank Alfalah’s Dealer Finance product, Pakistan Cables’ dealers can receive early payments, settling outstanding receivables on their books. This innovative approach will significantly reduce the financial burden on Pakistan Cables by mitigating the need for short-term borrowing due to tied-up receivables. 

Moreover, dealers and suppliers of corporate customers that are part of the Small-Medium Enterprise sector can avail financing based on the creditworthiness of their corporate buyers/sellers, benefiting from competitive rates. This move boosts financial inclusion by providing dealers and suppliers access to formal credit from banks at competitive rates and with relaxed security arrangements. 

Farooq A Khan, Group Head Corporate, Investment and International Business Group, Bank Alfalah said, "We are delighted to collaborate with Pakistan Cables Limited to introduce Supply Chain Financing, a testament to our commitment to supporting businesses and fostering economic growth. This initiative supports our dedication to financial inclusion, ensuring that SMEs have access to the resources they need to succeed in today's competitive market."

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