Most bank credits in Saudi Arabia are short-term in nature; they are usually self-extinguishing overdraft facilities or loan terms of one year or less. Some banks offer short-term cash facilities in the form of one-, three- or six-month rollovers that the bank has the right to call. Banker’s acceptances, commercial paper and factoring are not commonly used financing techniques, although some banks put their own acceptances on letters of credit. One company, Al Dhimmah Credit Collection Office, based in Damman, specialises in collection services similar to factoring.
