Three organizations have joined forces to secure funding for energy suppliers and a chemical company Aramco by rolling out what they said is one of the world’s largest supply chain finance programs.
Aramco, Taulia and Saudi Industrial Development Fund (SIDF) on Tuesday (October 29) announced the signing of agreements to introduce supply chain financing solutions. press release.
“Together with our partners, we present this FinTech solution to our suppliers and offer them access to a unique and competitive financing option,” Ziad T. Al-Murshedchief financial officer and executive vice president of finance at Aramco, he said in a release. “This platform also provides an investment opportunity for banks to engage as finance providers, increasing the scale and viability of the solution.”
The new solution aims to free up billions of Saudi riyals in liquidity; provide an alternative and competitive source of financing to Aramco’s suppliers; improve their liquidity and cash forecasting accuracy; and strengthen the resilience of Aramco’s supply chain, according to the report.
Cedric BruCEO at Taulia, which is an SAP The company and FinTech provider of working capital management solutions said in a release that the solution will enable thousands of companies to access early payments.
“Our goal is to ensure quick and easy cash flows to suppliers,” said Bru. “When it’s done at scale, it creates opportunities for growth and investment for these businesses. We are extremely excited and proud to make this a reality for Aramco and its business partners.
In April 2021, it was reported that Aramco was exploring a supply chain financing an initiative that would fund billions of dollars a month in payments to suppliers. The report says the firm has more than 10,000 suppliers in its home country of Saudi Arabia.
Energy company Eni started a supply chain financing program designed in March 2023 to stimulate sustainable development.
Companies Sustainable Supply Chain Financing Program is focused on the energy supply chain and enables Eni suppliers to request advance payment of invoices if they are committed to sustainable development.
In an earlier solo collaboration, Taulia they got together with Visa in March enable virtual payment data work natively across SAP business applications.
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