AMI PROJECT • PAKISTAN
Peshawar Clothing
Business
Vision
Becoming the community's go-to seller
As the sole provider for four children, Aunt sought to expand the inventory of her clothing resale business. As one of the few dress and clothing resellers in her area, her vision is to grow her stock and establish herself as the go-to seller in the community. Doing so would allow her to transition from juggling a full-time job alongside her business to focusing on it full-time, as it would generate sufficient income to support her family.
The Challenge
A tight cash flow cycle
The main challenge the aunt faced was a tight cash flow cycle. While the majority of her customers paid in installments, she was required to pay her suppliers the full amount upfront.
This mismatch meant her capital remained tied up for extended periods, limiting liquidity and preventing her from reinvesting quickly to expand her inventory.
The Impact
A self-sustaining cycle
The riba-free loan enabled her to invest meaningfully in her business by purchasing a large volume of inventory.
This addressed her cash flow challenge by ensuring that, even while some capital remained temporarily tied up, she maintained sufficient stock to continue selling.
By the time her inventory was sold out, the installment payments from earlier sales had largely been completed, allowing her to reinvest the recovered capital and sustain the business cycle.