Trade finance in Saudi Arabia has always been subject to strict conditions. Access to operating liquidity was limited to specific categories: those with a long financial history, guarantees, or relationships with banks. However, with the economic transformation that the Kingdom is undergoing under Vision 2030, a new generation of entrepreneurs, from distributors of fast consumer goods to merchants of office supplies, has emerged, demanding a faster and more comprehensive financing model, a model that moves at the speed of trade rather than the pace of paper procedures.
This is where the buy now pay later business model comes into play, a model that is redefining the way businesses obtain short-term funding. Although the concept is not new globally, the way it is implemented in Saudi Arabia is a radical transformation.
At the heart of this transformation is Aegel, a Saudi company that started providing services to the construction sector. Today, it is expanding its range of Buy Now Pay Later solutions to serve various economic sectors.
Date of emplacement
Small and medium enterprises (SMEs) dominate the private sector in the Kingdom. These companies are a key element in economic diversification goals. However, their opportunities to obtain fast and flexible credit have historically been limited.
Traditionally, lending in Saudi Arabia is focused on two parties: large companies and government-linked projects on the one hand, and individual consumers on the other. Small and medium enterprises, especially in fast-moving sectors such as consumer goods, hospitality catering, and wholesale trade, were often excluded.
While banks tend to prefer long-term loans with strict credit standards, most small and medium enterprises need short-term liquidity to buy goods, fulfill orders from large customers, or buy in bulk from suppliers. The business opportunity is often there, but operating capital is missing.
Why buy now and pay later is more than just a payment method
Buy Now Pay Later is often misunderstood as a consumer-only tool, as it is globally linked to online retail and installment platforms. But in a business (B2B) context, buy now pay later is a form of integrated trade finance that allows companies to:
· You buy materials or goods immediately >
· Payment within a specific period (usually 30 to 180 days).
· Maintaining cash flow while ensuring continuity of operations.
For small and medium-sized businesses in sectors with limited profits or dependent on seasons, this model is not just a plus, but a key element of continuity.
Unlike traditional funding programs, Buy Now Pay Later is transactional, embedded in purchases, and fast to execute. There is no need for lengthy filing procedures, no complicated interest calculations, and in many cases, no financial statements are required. It's a credit model that has been redesigned to keep up with the pace of modern business.
Growth opportunities in various sectors within the Kingdom
With the expansion of “Urgent” in offering Buy Now Pay Later, the goal is not only to digitize finance, but to spread it to different sectors. Many of these sectors have always relied on informal supplier conditions, verbal agreements, or financing risks to keep inventory flowing.
Real-life examples include:
· Consumer goods and food catering distributors who manage multiple payments per week.
· Distributors of hygiene products who need to store large quantities before supplying to government contracts.
· Wholesale dealers in office supplies and stationery who provide schools and government agencies with fixed payment schedules.
· Cosmetics and salon suppliers that deal with seasonal fluctuations in demand.
In all these sectors, liquidity gaps do not arise due to poor corporate performance, but rather as a result of the rigid financial structure and its inadequacy to changing market needs. Here comes the role of Buy Now Pay Later solutions as a bridge that contributes to filling these gaps and enables companies to meet demand without putting pressure on their cash reserves or exceeding their financial capabilities.
An urgent model: from materials to movement
“Aegel” entered the market through the portal of the construction sector, one of the most challenging sectors in terms of access to finance. Contractors and subsuppliers often faced delays in payments and upfront material costs. Aegel's Buy Now Pay Later platform has helped finance purchases such as iron, cement, and electrical supplies, with approval times measured in hours, not weeks.
But the vision has always been wider.
What if every company in Saudi Arabia, from a food wholesaler in Jeddah to a detergent distributor in Al Khobar, had immediate access to Sharia-compliant financing to store their goods, deliver orders, or expand?
Today, “Aegel” is achieving this. Its infrastructure now supports Buy Now Pay Later across different sectors, with funding limits of up to 2 million Saudi Riyals, smart tools that rely on artificial intelligence for inspection, and flexible payment plans.
Most importantly, this model is not tied to a specific merchant; suppliers get their dues in advance, while buyers are offered a flexible repayment period. It is a model that achieves mutual gains for the business system, as it contributes to accelerating the movement of trade without increasing the risks of the other party.
Towards an economy based on buy now pay later solutions
The Kingdom is undergoing one of the fastest digital and economic transformations in the region. With Vision 2030 focusing on diversification, small business growth, and financial inclusion, the need for an advanced financing system is more urgent than ever.
Buy now pay later is not a passing trend. In the business context, it is a pillar of fast economy. It enables faster purchasing, stronger supply chains, and better inventory balance, which are vital elements in an economy led by the small business sector
As Aegel expands its Buy Now Pay Later offering across sectors, it not only solves the funding problem, but also enables a new economy: an economy in which opportunities are not delayed due to lack of liquidity.
Because in the new Saudi economy, access to finance must precede the speed of business.
