E1. Mohamed is having his own water purifier shop in Rustaq. There is many number of competitors are existing already in the water purifier businesss, initially Mohamed only prefer to sell the machines only for cash but due to heavy competition he is planning to change the strategy to selling the water purifier machines. So he is planning to sell the machines on credit based system. But before sales, they have decided to check the creditworthiness of their customers before giving them this facility. Before giving any credit sales to their customers their credit worthiness can be verified thru computerized software. That software verifies the customers information like how many banks he/she have bank accounts, how many loans currently taken by the consumers, whether they are repaying the loans on time to them all these kind of informations are verified. Most of the banks are providing credit cards to their customer based on this kind of customer verification. The same procedure followed by the Marwan also in his business. This is the situation.

Read the above case and answer the following questions:

(a). Identify the fact of this case, recommend how the non-banking financial institutions helpful to Marwans business?

(b). Do you think that working capital is necessary to Marwans business? Why?