Tameed Vs. Funding Souq - Review & Features Comparison

Blog Author
Funding Souq Editorial Team
Tech Writer
Jul 05, 2024
Funding Souq’s editorial team comprises experienced finance and investment professionals that are on a mission to fuel SME growth, create jobs, and drive the economy forward. They aim to share their extensive experience and industry know-how to empower entrepreneurs and investors alike.
Jul 05, 2024

 

 Below are the core features offered by Funding Souq versus Tameed. Both platforms offer crowdfunding solutions to SMEs, allowing investors to make healthy returns on sharia-compliant investments and borrowers to quickly tap the financing they need to sustain their businesses.

 

But there are many key differences. So which platform is best for you? Below we’ve highlighted the primary features you will enjoy as an investor or a borrower, so you can easily compare and contrast.

 

For Investors:

 

Platform feature

 

Funding Souq

Tameed

 

 

 

 

Who can invest?

 

 

 

Funding Souq is the only crowdfunding platform in the Middle East that is regulated in 2 countries – Saudi Arabia & the UAE.

 

Funding Souq’s KSA platform can onboard only Saudi nationals and residents as per the Saudi Central Bank regulation. 


Funding Souq’s UAE (Global) platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses.

 

 

Tameed’s platform can only onboard Saudi nationals and residents.

 

Saudi-based investors lend to businesses in Saudi Arabia in need of purchase order financing.

 

 

What is the minimum investment?

 

 

The minimum investment is SAR / AED 1,000, which approximates to $270.

The minimum investment is SAR 1,000

What returns can investors expect?

 

 

Investors can expect a net yield of up to 15% and APY of up to 30% as monthly repayments allow for compound interest.

 

To understand the difference between yield and APY (IRR) read our blog here.

Investors can expect a net yield of up to 14%.

 

The APY is also 14% because the repayment is made at the end of the period rather than monthly.

 

 

 

 

What are the fees for investors?

 

 

The returns displayed on the platform are net of any applicable fees. The presented return is what you should expect to earn.



Investors pay a 20% fee on the yield.

 

 

 

Does the platform have an Auto-Investment option?

 

 

 

Yes.

 

Once enabled, the Auto-Invest system will automatically allocate your recently deposited funds or repayments into the marketplace based on your  selected investment strategy.

Yes.

 

Once enabled, the Auto-Invest system will notify you when new opportunities are available and you’ll have 48 hours to cancel the investment, which is based on your investment strategy.

 

For Borrowers:

 

Platform feature

 

Funding Souq

Tameed

 

 

 

 

 

Who is eligible for borrowing?

 

 

 

Any established business in Saudi Arabia or the UAE with a minimum of two years of trading.

 

The business should have at least SAR/AED 2 million of revenue and be profitable or on path to profitability.

 

 




Saudi-based SMEs that have Purchase Orders from government agencies or large private companies.

 

 

What is the maximum financing duration?

 

Request financing for periods of 3-24 months.

Borrowers can later opt to go beyond 24 months.

The maximum that can be requested is 12 months.

 

What level of financing is available?

 

Typically between SAR / AED 100,000 to 1,000,000, but up to a maximum of SAR/AED 7.5 million.



Up to SAR 7.5 million

 

What are the fees for borrowers?

 

Administration fees: 2% to 3%

 

Monthly profit rate: 1% to 1.5%

Administrative fees: 2.5% to 2.95%

 

Monthly profit rate: 1% to 2%

 

How long does it take to get a funding decision?

 

Typically within 72 hours.

Typically within one business day.

Are multiple funding facilities permitted?

Yes.

Yes.

Can you repay funds early without penalties?

 

 

Yes.

Yes.

Are all finance and investment operations sharia-compliant?

 

Yes,you can find out more details about our Shariah Certficate 

Yes.

 


Disclamer:
"Funding Souq KSA is regulated by the Saudi Central Bank (SAMA). This communication is not directed at or intended to be acted upon by any Person in the DIFC.. Funding Souq operates Islamic Window, pursuant to which it's Shariah Supervisory Board (SSB) has reviewed the Shariah Compliant structure, to which this marketing material relates. SSB Members are from Safwa Shariah Advisory Pvt. Ltd., whose details are available on Funding Souq website. SME Financing carries a potential default risk which may result in loss of all or part of your investment, incur costs or delays in receiving payments."

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