NCC Bank and Akij Resource Group have formally partnered to implement a supply chain finance (SCF) program for suppliers within the Akij Resource Group network. The agreement, formalized through a memorandum of understanding (MoU), involves six companies within the Akij Resource Group.

The SCF arrangement is designed to provide financial support and streamline payment processes for suppliers working with Akij Resource Group. Supply chain finance solutions typically involve a financial institution, like NCC Bank, providing early payment to suppliers at a discounted rate, while the buyer (Akij Resource Group) pays the full invoice amount on the original due date. This offers benefits to both parties: suppliers receive quicker access to funds, improving their cash flow, and Akij Resource Group can optimize its working capital.

Details regarding the specific financial terms of the agreement, the total value of the SCF program, and the number of suppliers expected to benefit were not disclosed. However, the MoU signifies a growing trend of businesses leveraging SCF to strengthen their supply chains and improve financial efficiency. Akij Resource Group is a significant conglomerate in Bangladesh, involved in diverse sectors including consumer goods, textiles, and real estate. NCC Bank is a leading private commercial bank in Bangladesh, offering a range of banking services, including trade finance and supply chain solutions.

The collaboration aims to foster stronger relationships within the Akij Resource Group supply chain, contributing to the stability and growth of participating businesses. Further announcements regarding the program's implementation and impact are anticipated.