Housing Bank pioneers Jordan’s first SCF programme

Housing Bank has introduced a landmark initiative in the Jordanian financial sector by launching the country’s first supply chain finance (SCF) programme. This strategic development underscores the bank’s continued leadership in financial innovation and digital transformation.

At the core of this initiative is the seamless integration of Housing Bank’s trade finance system with CreditPlus, Jordan’s pioneering digital platform for SCF. Through this partnership, the bank is offering a transformative financing model designed to provide small and medium-sized enterprises (SMEs) with efficient and cost-effective alternatives to traditional financing.

The programme is particularly impactful for SMEs, widely recognised as the backbone of Jordan’s economy. These businesses are essential suppliers of goods and services and play a pivotal role in job creation and economic resilience. By improving access to working capital and ensuring sustained liquidity, the new reverse factoring solution empowers SMEs to continue operations, scale their activities, and bolster their competitiveness.

A key feature of the programme is its ability to enhance cash flow predictability. SME suppliers can now receive early payments on their trade invoices based on the creditworthiness of their buyers. This model eliminates the need for traditional collateral or preset credit lines, significantly reducing financial barriers. Moreover, the financing is provided at competitive rates, enabling businesses to optimise their capital structure without incurring prohibitive costs.

Beyond funding, the initiative supports broader goals of digital inclusion and efficiency. The integrated platform allows SMEs to digitise their financial operations, streamline invoice management, and connect with stakeholders through automated processes. This not only reduces operational risk but also drives improved performance and transparency across the supply chain.

This launch aligns with Housing Bank’s broader mission to cultivate a more inclusive and sustainable financial ecosystem. The bank has consistently demonstrated its commitment to developing digital infrastructure that caters to diverse customer needs, especially those of underbanked or underserved segments.

The reverse factoring initiative complements the bank’s expansive offering of SME-focused services, including tailored loan programs, electronic banking tools, and a comprehensive suite of trade finance products. It also reinforces Housing Bank’s strategic vision to lead digital transformation in the banking industry, evidenced by its wide-ranging digital services—from youth and children’s banking programs to a nationwide network of modern branches equipped with interactive ATMs and a 24/7 customer support center.

With this forward-looking program, Housing Bank not only reaffirms its commitment to innovation but also establishes a robust foundation for long-term economic empowerment and growth in Jordan.