Sales on Credit in the Syrian market

Suppliers in the Syrian market do provide their clients products on credit, the credit amount is to be paid according to "Jamia" basis.
The meaning of "Jamia" is that the client is obligated to pay the supplier a weekly payment in a certain day, by the habit Thursday became the chosen day for all suppliers to collect their payments from the clients.
The amount of the weekly payment usually not previously agreed on, so it is more often that the client pays a little amount as a payment on his account
From the above Credit facility we note the following
First: The client might borrow amounts does not fit the size of his business
Second: The supplier finds himself pushed to give away some cash as credit facilities, because of the habits in the Syrian market, noting that the collection rate of the receivables usually is not suitable with the number of sales (in most cases)
Third: The new suppliers who are trying to enter the Syrian market might face difficulties if they are not able to offer the same credit facilities, because distributors and clients are not interested to buy in cash or on a short credit term

Waleed Tibi
Certified Accountant License 2446
Active member in Association of Syrian Certified Accountants No. 1608
Mobile: 00963-944-704454
Post Box: 6056 - Damascus - Syria
waleedtibi@gmail.com