Capital expansion financing - Medium term

Riyad Bank offers you a Capital Expansion Financing program, Tawarruq Funding and/or Letters of Credit (with refinancing) and/or all types of Bank Guarantees (Primarily, Performance, advance payments, or financial) to finance business expansion plans (New branches, machinery, equipment…) with a repayment tenor up to 5 years.

Conditions:

  • Meeting the minimum credit/risk acceptance criteria of Riyad Bank
  • Minimum business age is one year, and have a permanent location/outlet
  • Presenting a bank account statement of one year
  • Equipment should be used for the business at finance
  • Presenting a bank account statement of one year, financial statements of one fiscal year (audited, or self-prepared)
  • Presenting future cash flow reflecting the expected financial impact of the expansion plan
  • Terms and conditions apply

Rates & Fees:

Product Annual Percentage Rate (APR) Administrative fees Administrative fees Min or Max Limit
Capital Expansion Financing Program- Medium-term 2% to 15% 0% to 5% -

* The above table is an example, and the annual percentage rate varies according to the amount and the credit evaluation of the activity in addition to the period and method of payment.

The method of calculating the finance cost:

Example (1):

Finance Amount SAR 100,000
Payment Method Monthly Installments
Payment Period 12 Months
Annual Profit Rate 2%

Finance Amount Installment Amount Total Bank Profit Finance Amount including Profits
SAR 100,000 SAR 8,500 SAR 2,000 SAR 102,000

Example (2):

Finance Amount SAR 100,000
Payment Method Monthly Installments
Payment Period 60 Months
Annual Profit Rate 8%

Finance Amount Installment Amount Total Bank Profit Finance Amount including Profits
SAR 100,000 SAR 2,337 SAR 40,235 SAR 140,235

Example (3):

Finance Amount SAR 100,000
Payment Method Monthly Installments
Payment Period 36 Months
Annual Profit Rate 7%

Finance Amount Installment Amount Total Bank Profit Finance Amount including Profits
SAR 100,000 SAR 3,369 SAR 21,292 SAR 121,292

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