Three organizations have joined forces to provide financing to suppliers of energy and chemical company Aramco, creating one of the world’s largest supply chain financing programs.
Aramco, Taulia and the Saudi Industrial Development Fund (SIDF) announced the signing of an agreement to establish supply chain finance solutions in a press release on Tuesday (October 29).
Ziad T. Almershed, Aramco’s chief financial officer and executive vice president of finance, said: “We are working with our partners to introduce this fintech solution to our suppliers and unlock unique and competitive financing opportunities. We provide access to release. “The platform also provides investment opportunities for banks to participate as financial providers, increasing the scale and viability of the solution.”
The new solution aims to free up billions of Saudi riyals in liquidity. Provide alternative and competitive sources of financing to Aramco’s suppliers. Improve liquidity and cash forecasting accuracy. According to the release, the move will strengthen the resilience of Aramco’s supply chain.
Cedric Bru, CEO of Taulia, an SAP company and FinTech provider of working capital management solutions, said in a release that the solution will give thousands of businesses access to early payments.
“Our goal is to ensure that cash flows quickly and easily to our suppliers,” Blue said. “Executing at scale creates growth and investment opportunities for these businesses, and we are extremely excited and proud to see that become a reality for Aramco and its trading partners.”
In April 2021, it was reported that Aramco was considering a supply chain finance initiative that would lend billions of dollars a month to pay suppliers. According to the report, the company has more than 10,000 suppliers in its home country of Saudi Arabia.
Energy company Eni launched a supply chain finance program in March 2023 aimed at promoting sustainable development.
The company’s sustainable supply chain finance program focuses on the energy supply chain and allows Eni to request prepayment of its invoices if its suppliers are committed to sustainable development.
In a previous separate collaboration, Taulia partnered with Visa in March to enable virtual payment credentials to work natively across SAP business applications.
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