A company may have sold its products and generated revenue, yet still not have the cash.

Weeks or months may pass between delivering the goods and collecting the invoice amount, while payroll, purchases, inventory, and expenses continue. This creates a dilemma for companies: sales growth does not necessarily mean abundant liquidity.

From this perspective, we can view the move by the Saudi Central Bank, "SAMA," which on August 26, 2026, issued the "Draft Rules for the Practice of Supply Chain Finance" for public consultation for 30 days.

The rules aim to regulate the practice and intermediation of supply chain finance, supporting the growth of this activity in the Kingdom and enhancing the efficiency and flexibility of financial transactions in commercial sectors.

But the significance of this move goes beyond regulating a financing activity; it raises a broader economic question: What happens when an invoice awaiting payment becomes a means of accessing liquidity?

The Company Has Sold—but the Cash Hasn’t Arrived

Suppose a supplier delivers goods to a company, but will not receive payment for the invoice until later. During this period, the supplier needs to purchase new materials, pay wages, and continue operating.

Put simply: the supplier has financial receivables, but the cash is not yet in its account.

This is where supply chain finance comes in. In some of its forms, it allows suppliers to obtain short-term financing and convert their receivables into liquidity instead of waiting for the payment date.

The economic value here lies not in increasing sales, but in the timing of cash inflows. The more a company can unlock part of the liquidity tied up in its receivables, the better able it is to finance its inventory and inputs and begin a new business cycle.

Why Does Liquidity Matter More to Small Businesses?

This gap becomes more significant when the company is smaller.

Access to financing is a challenge for many small and medium-sized enterprises, highlighting the importance of expanding the financing options available to them.

Supply chain finance can provide an additional financing option, helping suppliers convert their receivables into liquidity and improve their working capital.

Economically, the idea is simple: the sooner liquidity arrives when it is needed, the better able a company is to finance its inventory and operations and continue its production and sales cycle.

Faster Liquidity Is Not Without Risks

But obtaining cash early does not mean that financing is free or risk-free.

There is a financier, a supplier, and a buyer, and there may also be an intermediary. As the activity grows, the need for clear rules defining procedures and regulating the relationships among these parties becomes greater.

This is where SAMA’s move becomes important.

The draft covers supply chain finance and supply chain finance intermediation and aims to establish standards and procedures governing the activity, as part of efforts to develop the financial sector and encourage innovation in financial services.

This makes the equation clear: expanding financing options for companies, but within a framework that regulates the market’s growth and practices.

When Time Becomes Part of Financing

Ultimately, supply chain finance does not create new sales, nor does it turn every invoice into financing.

But its economic value lies in time.

A company does not only need to sell; it needs cash to arrive at the time that enables it to purchase inventory, finance its operations, and begin a new business cycle.

This is why SAMA’s draft appears to be more than just rules for a financing activity; it opens the door to a market that could make the invoice part of working-capital solutions, rather than money waiting for its payment date.

The economy needs not only companies that sell more, but also liquidity to move efficiently among them.

The invoice that confirms the completion of a sale may itself be the starting point for a new cycle of financing and production.