Bahrain Development Bank is turning approved invoices into near instant cash for small and medium sized businesses through a new invoice discounting solution on its tijara digital banking platform.

As reported by Biz Bahrain, BDB introduced the Invoice Discounting Scheme in the first quarter of 2025. The product lets suppliers receive payment as soon as a buyer approves an invoice, instead of waiting through extended credit terms that can stretch for months.

The process is intentionally simple. Buyers first register on the invoice discounting system. Once a supplier delivers goods or services, the buyer issues an invoice, then uploads it to the tijara platform. After the buyer confirms approval inside the system, BDB reviews the invoice and releases payment directly to the supplier. The buyer still enjoys a longer, more flexible settlement period with the bank, rather than with the supplier, which helps both sides plan their cash flow more confidently.

BDB positions the product as an innovative financing tool that improves immediate liquidity for suppliers while stabilising trade in the domestic market, according to the same Biz Bahrain coverage. For founders selling to large corporates or government related entities, that can mean fewer tense conversations about late payments and more predictable working capital.

The move builds on BDB’s wider strategy around supply chain finance. In August 2025, the bank signed an invoice discounting agreement with Aluminium Bahrain for its SME suppliers, described by Bahrain This Week as a way to convert outstanding invoices into immediate liquidity and strengthen operational efficiency across Alba’s supply chain. In that context, BDB Group CEO Dalal Al Qais said, “This agreement reflects our firm commitment to empowering the SME sector by delivering effective and practical financing tools that strengthen liquidity and stimulate sustainable growth” Bahrain This Week, August 2025.

Bahrain’s wider payments infrastructure is also moving in the same direction. Earlier this month, the Central Bank of Bahrain announced a cooperation agreement that connects Benefit’s EFTS Fawri plus service with India’s UPI, enabling secure real time payments between the two countries and strengthening cross border financial connectivity, according to The Daily Tribune. For Bahraini exporters and tech companies, that kind of instant payment rail makes invoice based finance more reliable across markets, not only inside the Kingdom.

Policy support for SMEs adds another layer. When Tamkeen and Mastercard launched the Strive initiative earlier this year, Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa noted that “The Kingdom of Bahrain has always prioritized fostering a supportive environment for SMEs.” That environment now includes tools that range from digital skills programmes and AI upskilling to specialised trade finance products like BDB’s invoice discounting.

For founders and finance teams in Bahrain, the practical next step is straightforward. Map out your largest customers, check whether they bank with BDB or already use the tijara platform, and sit down with both your relationship manager and your buyer to see which invoices could move onto an instant payment model without disrupting existing contracts.