Yes, it can be deactivated and activated on the Investment Settings page at any time.
The Balanced strategy is designed to make the most of the available opportunities on Funding Souq. Our system will allocate unlimited exposure to A-rated opportunities as these are fully guaranteed through our partnership with Sharjah Media City. Given that our B-rated opportunities are not guaranteed and are riskier, our system will limit your exposure to 10% of your total portfolio for these opportunities.
The Conservative strategy is designed to minimize your risk but with that comes lower returns as well. Our system will allocate your funds to only A-rated opportunities which are fully guaranteed through our partnership with Sharjah Media City.
Auto-Investing is a feature that allows you to invest your available funds in a hassle-free manner. If enabled, our system will automatically allocate your recently deposited funds or your repayments into live opportunities on the Marketplace. There are 2 types of Auto-Investing strategies, Balanced and Conservative, and these are designed to maximize your returns on a risk-adjusted basis.
CRS information is mandatory for the account opening process and an investor account cannot be opened without providing the relevant information.
Generally, information needs to be provided on a one-off basis unless there is a change in tax residency status. However, Funding Souq may request documents as it deems necessary.
Please contact a professional tax advisor or check the OECD website. For more information on how to determine your tax residency.
The cost of borrowing varies depending on the internally generated risk rating and the tenure of the fund. The fee varies from a one-off of 2-5%. Funding Souq doesn’t charge any additional fees.
Yes, businesses can have more than one funding request at any point in time. However, a business must have made several successful repayments on their existing facilities prior being approved for a second facility.
Businesses undergo a due diligence process that is led by the credit team. The risk assessments analyse business and financial performance as well as qualitative facts such as the strength of the management team, industry sentiment and others. The process also includes a site visit.
Repayments can be settled early with no penalties.
Repayments can made either be processed electronically through bank transfers or post-dated cheques can be issued in line with UAE banking practices.
Businesses need to be established in the UAE with a minimum of 2 years of trading. The venture needs to have AED 2M of revenue and profitable or on path to profitability. All businesses will undergo extensive due diligence through the credit assessment process.
Funding Souq offers financing between AED 50k to AED 1m for 3-24 months.
Funding Souq only accepts credit-worthy businesses after extensive due diligence has been undertaken to ensure their creditworthiness. However, that doesn’t mean that risk is fully eliminated, and defaults can still occur. That is exactly why we encourage our investors to diversify their exposure across several businesses and hence lower the risk of capital loss. As an unsecured facility, the risk is borne by the investor. Funding Souq is committed to exercising everything in its power to collect the funds and will initiate legal action if deemed relevant. To minimize the risk of a business defaulting, businesses need to provide the necessary guarantees in line with UAE practices. This includes an undated but signed cheque for the total fund amount and at least one personal guarantee which is drafted under DIFC law.
Funding Souq doesn’t allow an investor to sell their funds or fund parts before the end of the finance contract.
Funding Souq will notify the lenders as soon as practically possible if it comes across any information about a material change in the borrower’s circumstances. It will provide details to the lenders of the material change, any change in their rights arising from this material change, and subsequent actions Funding Souq intends to take.
Funding Souq will notify the lenders as soon as practically possible if it comes across any information about material change in borrower’s circumstances. If lenders have not already funded any campaign, Funding Souq will request lenders to re-confirm their commitment within 5 business days. Funding Souq will have to cancel the funding commitment if the requisite confirmation from the lender is not received within the prescribed period.
Funds originated by Funding Souq are aimed to support business expansion including working capital and therefore are unsecured against assets. However, to reduce default risk, businesses need to provide the necessary guarantees in line with UAE practices. This includes an undated but signed cheque for the total fund amount and at least one personal guarantee which is drafted under DIFC law.
The maximum funds that can be deposited in a calendar year (January-December) is AED 180,000 ($50,000). To keep track, the remaining amount can be reviewed in the Add/Withdraw funds tab. This is a regulatory requirement and if you would like to be exempted, you must be classified as a Professional Investor.
An investor can start investing with as little as AED 1,000 ($270).
Retail investors are limited to AED 18,000 ($5,000) per business. This limit is placed automatically by the platform. The minimum investable amount is AED 1,000 ($270).
To be classified as a professional investor, you need to have net assets in excess of AED 3.67M ($1M) excluding your primary residence. If you satisfy these criteria, please contact [email protected] and you will be invited to meet a company representative who will determine whether you have the necessary experience and explain the associated risks of becoming a professional investor.
Investors can earn up to 15% per year by financing to established SMEs in the United Arab Emirates. The return will depend on the internally generated credit rating and the tenure of the finance request.
Funding Souq facilitates funds to be managed on behalf of someone else given the necessary KYC information is provided for both parties, i.e. the registered user on the platform and the beneficial owner of the funds. Also, the firm requests an authorization letter from the beneficial owner of the funds that allows you to invest the funds on their behalf.
Investors need to be at a minimum of 18 years of age.
The firm can maintain investor accounts for residents of most countries, with a few exceptions. If a relocation occurs, please contact [email protected] to ensure whether you are still eligible to remain as a investor on the platform. If your account can no longer be maintained, the firm will restrict you from adding any further funds and from making any further investments. All existing investments will remain active and repayments will be made to your account. Once the fund has been repaid in full, you will be able to withdraw these repayments and your account will be permanently close.
Investors will need to provide a passport (or an equivalent document), a proof of address, employment information and information on the source of funds. This list is not exhaustive and hence additional information may be requested on a case by case basis. Professional investors will need to provide additional documents in order to satisfy KYC requirements. More details on the required documentation for professional investors can be obtained on [email protected].
The term KYC stands for “Know Your Customer” and is used throughout the client identification process. The pre-set KYC rules by the Dubai Financial Services Authority (DFSA) are the standard requirements that need to be followed by all regulated entities. This includes identity verification, proof of address, employment information, and other general information. Investors need to clear all KYC requirements prior to being onboarded on the Funding Souq platform. The compliance department will conduct ongoing KYC checks to ensure information is constantly updated.
Funding Souq is a regulated entity by the DFSA and in turn, has a Business Cessation Plan that is reviewed on an annual basis. As a Category 4 license holder, Funding Souq is required to have a minimum capital commitment which will be resorted to if the business was to cease trading. If the business ceases to trade the uninvested funds will be returned to the respective investors’ bank accounts. Also, a repayment schedule and an outstanding payment statement will be sent to you within 5 working days. All existing financing contracts will remain valid, and legally binding and installments will continue to be collected as projected.
Investors are not charged any fees.
Borrowers get charged an origination fee that is dependent on the riskiness of the underlying business and the tenure of the finance. The fee varies from a one-off of 2-5%. Funding Souq doesn’t charge any additional fees.
The platform acts as a marketplace for investors looking to invest their money and businesses seeking funding. Investors can register on the website and if approved they will be allowed to deposit funds onto the platform or invest in businesses directly. As the businesses repay, the investor can choose whether to re-invest or withdraw their funds. Businesses seeking to borrow funds can go through the registration process and, if successful, will be asked to provide supporting documents. Once received, Funding Souq will conduct extensive due diligence on the underlying business and in turn either approve or reject the financing request. If approved, a fundraising campaign will be launched, and approved investors will have the option to finance the request. Conditional to the finance request being fully funded, the funds will be released and sent to the business. Funding Souq will manage the repayment process and facilitate installments made by the borrowers to the corresponding investors.
Funding Souq is a crowdfunding platform that connects established businesses with investors. The platform uses technology to connect both parties through the principle of crowdfunding, - i.e. raising small amounts of funds from many individuals.