Domestic Financial Pairing
Within the scope of domestic financial pairing, we provide services in the following three activities:
- Pairing enterprises with participation banks,
- Pairing enterprises with other participation financial institutions,
- Pairing enterprises with support and incentive mechanisms.
Pairing Enterprises with Participation Banks
Our service primarily involves creating options for restructuring, developing financing options for enterprises (e.g., murabaha financing, partnership-based financing, preferential fund pools, etc.), and leveraging other complementary financial products (corporate credit cards, POS devices, fintech solutions).
One of our most important functions in pairing enterprises with participation banks is the services we offer to reduce information asymmetry and ensure transparency. Enterprises may be unable to obtain financing from Islamic banks for various reasons, particularly lack of collateral. Through our analyses and comprehensive information sets, we facilitate enterprises’ access to a variety of financial products from participation banks. We also support participation banks in providing financing and other financial services to investable businesses.
Pairing Enterprises with Other Participation Financial Institutions
Inadequate access to and low awareness for alternative financing opportunities are reflected in Türkiye’s ongoing credit-based financial infrastructure. On the other hand, formation of a optimal capital structure for enterprises requires access to capital markets such as real estate investment trusts (REITs), venture capital funds, and crowdfunding platforms.
In particular micro and small-sized enterprises (MSMEs) represent a significant investment potential for capital markets institutions. Based on our expert analyses, these enterprises also constitute a significant investment pool for the non-bank PFIs.
We, on one end, provide intermediary and guidance services for the enterprises’ access to these alternative financing sources; and on the other end, we play a key role in helping PFIs invest in the right enterprises by significantly reducing their search and other transaction costs.
Pairing Enterprises with Support and Incentive Mechanisms
Complementing the pairing activities, there is a potential to provide support and incentives to SMEs, particularly those with the potential to meet green transformation and ESG criteria, through public institutions (e.g. KOSGEB, TÜBİTAK, etc.) and domestic representatives of international organizations (e.g. IsDB, EBRD, EDB, etc.). Indeed, various data sources confirm that micro and small-scale enterprises confront significant constraints in access to support and incentive mechanisms. This is primarily due to the enterprises’ inability to develop projects suitable for support and incentive mechanisms and to apply as requested, as well as a low level of awareness of these issues at the enterprise’s level.
We provide consulting services to guide enterprises into the correct support and incentive channels, aided by feasibility and strategy reports, which are outputs of the financial management process.
