Credit Assessment Policy in Dinar Investment Company
Credit Assessment Mechanism at Dinar:
Dinar Investment Company adopts a precise and comprehensive methodology to evaluate entities seeking financing, aligning with regulatory requirements and global best practices. The process begins with the analysis of financial statements and the study of key performance indicators, comparing them with similar companies in the sector to determine efficiency and solvency levels. The company also reviews the credit history and previous obligations of the entity, examines legal documents and licenses to ensure compliance with regulations and laws. The assessment is completed by studying administrative and organizational aspects to evaluate the entity's ability to sustain operations and achieve growth. Based on these stages, the appropriate financing product is determined, and the Sukuk structure is developed to balance the client's needs and investors' expectations, while fully adhering to Shariah standards and the local regulatory framework.
Overview of Financing Products:
Working Capital Financing:
Short- to medium-term financial support for companies to meet daily operational needs, such as inventory purchases, accounts receivable, and payroll, ensuring business continuity and smooth cash flow.
Capital Expenditure Financing:
Designed to help companies acquire or upgrade long-term assets like machinery, equipment, technology, or infrastructure, aimed at fostering business growth, improving productivity, and modernizing operations.
Real Estate Development Financing:
Capital expenditure financing for real estate development companies to address high cash flow needs during projects, conditional on mortgaging the project deed or another higher-value property deed.
General Information:
The evaluation of general information is reviewed to ensure the legitimacy and stability of the business activity, including: • Commercial Registration • Articles of Association • Administrative Structure Along with other regulatory details that help identify, analyze, and mitigate risks.
Financial Performance:
The financial performance evaluation measures a company's stability and financial health:
Credit History:
The credit history evaluation assesses the company's behavior in managing its financial obligations to determine its reliability.