Published in Product blog
Buy Now, Pay Later for Saudi Businesses: How Does Aajil Work?
By the Aajil team
Our Service in 60 Seconds | Aajil in a Minute
Every business needs its materials before it earns its returns. A factory buys its raw materials before it sells its product, a contractor sources supplies for a project before its progress payments come in, and a trader stocks its warehouses before the season arrives. In every case the money goes out before it comes back, and the business is left with two bad options: drain its cash on purchases, or put them off and let its work fall behind. Aajil exists to close that gap.
What is Aajil?
Aajil provides deferred purchase solutions for Saudi companies and businesses. It buys the materials and goods your business needs, pays the supplier directly, then gives you a term to pay for them in instalments.
In short: your business receives its materials today and pays for them as its revenue comes in.
How does Aajil work?
Aajil buys what your business needs from its supplier, then sells it to you on deferred terms under a murabaha structure, at a known profit agreed in advance. The supplier closes the deal paid in full, and your business gets on with its work knowing exactly when each payment is due and how much it is.
How do you buy on deferred terms with Aajil?
The process has four stages:
- Your business chooses the materials it needs and the supplier it works with.
- Aajil buys the materials and pays the supplier directly.
- Aajil sells the materials to your business at a set profit margin, disclosed from the start.
- Your business pays in instalments over two to twelve months.
What does Aajil offer your business?
- Protected cash: Your money stays available for salaries, operations and unexpected opportunities, instead of being tied up in purchases.
- Clear cost: You know the total you will pay from day one, with no surprises and no charges piling up.
- A stronger supplier relationship: Your supplier is paid in full without delay, which builds its trust in your business.
- Work that keeps moving: No project is delayed and no production line stops while waiting for cash.
How is buying on deferred terms with Aajil different from a bank facility?
The two can look alike, since both give a business flexibility in how it pays, but they differ in what they are and in how they involve the supplier:
| Item | Aajil (deferred purchase) | Bank facility |
|---|---|---|
| Nature | Buying materials on deferred terms | A cash loan |
| Supplier | Paid for the materials directly | Not part of the facility |
| Collateral | No bank guarantees | Guarantees and collateral |
If what your business really needs is the materials its work depends on, buying on deferred terms with Aajil meets that need at its source and makes sure the supplier is paid directly, without you pledging your assets.
Who can benefit from Aajil?
Aajil serves Saudi businesses that meet the following conditions:
- Operating for more than a year.
- Annual revenue of no less than ten million riyals.
- A SIMAH credit record free of any defaults.