POS financing requirements are not bank paperwork for its own sake. They are the handful of things a lender checks to decide whether your sales can carry the funding, and every one of them maps onto something you already know about your own business.
You are not looking for cash for the sake of cash. You are running a going concern, and you think it deserves to grow. Maybe a large supply contract is about to be signed. Maybe you want to open a second branch. Or maybe you simply believe the business is capable of more.
You also cannot afford a financial mistake. No inflexible facility, no monthly commitment that strangles your cash flow, no time to wade through vague terms or offers that ignore how your business actually trades.
So this guide explains rather than sells. It sets out what you need to know about POS financing: the requirements, the funding percentages, the repayment methods, and who genuinely offers it in Saudi Arabia. Accurately, without overstatement, so that you can decide whether this is the right kind of funding for you.
What Is POS Financing?
POS financing is a form of business funding in Saudi Arabia that gives you liquidity based on your daily sales through your card payment terminals. There is no guarantor, and you are not locked into fixed monthly installments. Instead the financier deducts a portion of your daily sales automatically. Every sale contributes to repayment, without disrupting your cash flow or requiring anything from you.
It suits businesses that trade consistently and generate steady sales through their POS terminals. Many owners choose it because they want to expand without taking on punishing monthly obligations, or because they prefer a repayment model that flexes automatically with how sales are performing.
POS Financing Requirements At Alraedah
Alraedah does not attach complicated or shifting conditions to its POS financing programme. It sets out a clear set of criteria so business owners can work out their eligibility in advance, with no surprises later. Here is the full picture.
1. Financing With No Guarantor Required
Alraedah does not require a guarantor or sponsor for POS financing, which sets it apart from many other financiers. That single point saves time and paperwork, and simplifies the contract because no third party has to be brought into the guarantee.
Plenty of traditional lenders insist on a guarantor. Alraedah lets you apply for a POS facility without one, against clear operating criteria instead.
2. No Heavy Fixed Monthly Installments
Alraedah will not tie you to fixed monthly installments. The primary repayment method is a proportional daily deduction from the sales passing through your POS terminal.
That model gives your business real flexibility, because repayment moves in step with your actual sales volume. If fixed monthly installments suit your business better, Alraedah offers that option too.
3. Funding Of Up To SAR 25 Million
POS financing at Alraedah starts at SAR 20,000 and reaches a maximum of SAR 25 million, depending on your sales volume through the terminal.
Worked examples:
- If your business turns over SAR 500,000 a year through POS, you may qualify for between SAR 100,000 and SAR 250,000 (20% to 50% of sales, depending on the outcome of the credit assessment).
- If your business turns over SAR 4,000,000 a year, your funding could reach SAR 2,000,000 (50% of sales).
- However large your sales, the ceiling remains SAR 25 million.
4. Daily Repayment From The POS Terminal
Alraedah deducts a set daily percentage of the transactions running through your terminal, taken directly with no effort on your part.
No transfers, no manual payments, no monthly scheduling. It all happens automatically.
Worth knowing: this convenience depends on your sales through the device being reasonably regular, so that repayment stays consistent.
5. A Business Active For At Least 3 Months
Alraedah requires your business to have been trading for at least 3 months at the point of application. This confirms your operation is settled and capable of generating regular sales, even if the venture is small.
If you started less than 3 months ago, you will need to wait before applying.
6. An Active POS Terminal For At Least 3 Months
Alraedah requires a live, active POS terminal in place for no less than 3 months, with real recorded sales on it.
This lets the assessment team gauge your sales level, judge your eligibility, and size the right amount of funding for you.
Read also: POS terminal price and merchant fees
7. Clear, Published Administrative Fees
Alraedah charges an administrative fee of 2.5% per year of the financing amount, with a minimum of SAR 7,500, plus 15% VAT.
8. How Much Of Your Sales Can You Actually Get?
With Alraedah’s POS financing, the amount is not arbitrary and it is not the same for everyone. It rests on your total annual sales through the POS terminal and on the outcome of the credit assessment.
| Item | Detail |
|---|---|
| Funding as a share of annual sales | 20% to 50% |
| Minimum funding amount | SAR 20,000 |
| Maximum funding amount | SAR 25 million |
| Worked example | Annual sales of SAR 1,000,000 means potential funding between SAR 200,000 and SAR 500,000 |
The top of the range is not granted automatically. It depends on your credit assessment, how regular your POS sales are, and how stable the business is.
POS Financing Requirements Compared Across Saudi Providers
To help you decide, here is how the main POS financing requirements compare across the leading providers in Saudi Arabia, banks and finance companies alike, covering trading history, terminal history, limits, funding share, and repayment method.
| Provider | Guarantor | Minimum trading history | Minimum POS history | Funding limits | Share of annual sales | Repayment method |
|---|---|---|---|---|---|---|
| Alraedah Finance | Not required | 3 months | 3 months | SAR 20,000 to SAR 25 million | 20% to 50% of total annual sales (subject to credit assessment) | Flexible daily deduction from POS income, or fixed monthly installments by choice |
| Social Development Bank | Not required (government funding) | 24 months | 12 months | SAR 180,000 to SAR 10 million | Up to 50% of POS and e-app sales | Monthly installments over a term of up to 5 years |
| Al Rajhi Bank | Not required | Not specified (requires an active commercial registration and POS sales) | Not specified (requires POS revenue) | SAR 50,000 to SAR 25 million | Set by the bank’s assessment of business revenue | Fixed monthly installments over a term of up to 5 years |
| Bank Albilad | Not required | 24 months | 12 months | Up to SAR 3 million | 30% of total POS revenue over the last 12 months (capped at SAR 3 million) | Fixed monthly installments up to 36 months (with a possible 6-month grace period) |
| Alinma Bank | Not required | 24 months | 12 months | SAR 50,000 to SAR 7,500,000 | Set by revenue size and Alinma’s assessment of the business | Manageable monthly installments up to 60 months |
Scroll the table sideways to see the remaining columns.
Are You Eligible For POS Financing?
Work through the checks below and match your situation to the closest option.
1. How Long Has Your Business Been Trading?
- 3 months or more: you meet Alraedah’s trading history requirement.
- Less than 3 months: not eligible yet. Complete 3 months of trading, then apply.
2. What Is The Status Of Your POS Terminal?
- Active for 3 months or more with recorded sales: you meet the terminal requirement.
- No terminal, or active for less than 3 months: not eligible yet, because the terminal’s sales record is the basis of the assessment.
3. What Share Of Your Sales Runs Through The Terminal?
- More than 50%: the daily deduction mechanism suits your business well.
- Between 25% and 50%: you can apply, but the approved amount may be affected, because a large share of your income does not pass through the terminal.
- Less than 25%: this financing is not a good fit right now, since repayment depends on daily terminal sales.
4. How Stable Are Your Sales Across The Year?
- Broadly stable year round: ideal for consistent repayment.
- Seasonal, peaking in certain months: expect the daily deduction to vary between months.
- Volatile or in a downturn: take care. The repayment term is not automatically rescheduled if your sales drop.
5. Estimate Your Funding And Fees
Multiply your annual sales through the terminal by a figure between 20% and 50% to estimate your likely funding range.
| Item | Detail |
|---|---|
| Funding as a share of annual sales | 20% to 50% |
| Funding limits | SAR 20,000 to SAR 25 million |
| Administrative fee | 2.5% per year, minimum SAR 7,500, plus VAT |
Example: annual sales of SAR 1,000,000 means potential funding between SAR 200,000 and SAR 500,000, depending on the credit assessment.
When Is POS Financing Not The Right Choice For You?
This kind of funding is not designed to suit every business. It serves a particular set of operations that meet clear conditions. Even if you qualify on paper, think carefully about the following before deciding.
1. Most Of Your Sales Do Not Run Through The POS Terminal
If your business collects revenue through bank transfers, monthly contracts, or deferred payments, a daily deduction from the terminal will not cover the funding consistently.
POS financing assumes a broadly steady daily income. This is a fundamental point in Alraedah’s POS financing requirements.
2. You Have Not Used The Terminal For Long Enough
Alraedah requires an active POS terminal for at least 3 months showing a real sales record. If that is not the case, you will need to wait until it is.
3. Your Business Is Going Through Volatility Or A Downturn
If your sales are low or unsteady, the daily deduction can squeeze the liquidity you have available, without the repayment term changing.
Alraedah does not automatically reschedule the repayment term if sales fall, and that is something to prepare for in advance.
4. You Do Not Have A Clear Plan For The Funding
The programme gives you flexibility in repayment, but it remains a genuine financial commitment.
If you have not pinned down the purpose precisely, whether expansion, buying stock, or covering a supply contract, it may be better to postpone the decision until your priorities are clear.
Frequently Asked Questions About POS Financing
You may still have questions the sections above did not answer. Here are the ones our customers ask most often.
How Much POS Financing Can I Get?
The amount rests on your total annual sales through the POS terminal and on the outcome of the credit assessment. At Alraedah the funding share ranges between 20% and 50% of annual sales, starting at SAR 20,000 and reaching up to SAR 25 million.
If you need funding beyond that range and you meet the other POS financing requirements, it is still worth applying. Alraedah reviews each case individually and may grant a higher amount depending on the credit assessment and your sales volume. Talk to the Alraedah team about what you actually need.
Do I Need A Guarantor For POS Financing?
No. One of Alraedah’s POS financing requirements is that the funding does not require a guarantor or sponsor. You can apply in your business’s name alone, provided you meet the remaining operating conditions.
Can I Repay Early?
Yes, you can request early repayment at any time. We recommend contacting Alraedah’s customer service team to find out whether any specific arrangements apply to early settlement.
Is POS Financing Shariah Compliant?
Yes. All Alraedah products, POS financing included, follow Shariah controls and are approved by an independent Shariah supervisory board.
Does POS Financing Affect Daily Cash Flow?
Repayment is built on a fixed percentage of POS terminal sales, deducted automatically each day. That makes repayment proportional to what the business actually earns, and eases the pressure on liquidity compared with fixed monthly installments.
Can I Combine This With Other Types Of Financing?
Yes, though it depends on an assessment of your business’s full financial position. You may be asked to disclose any existing financing obligations, and these are taken into account when calculating the new amount. Alraedah assesses each application individually, against its accepted exposure ratios.
Does POS Financing Affect My Credit Rating?
Yes, like any other facility. If you keep up repayments, that counts in your favour for future creditworthiness assessments. If you default, it may affect your rating negatively. Treat POS financing as a serious commitment within your business’s credit record.
