Frequently Asked Questions

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.

Yes, it can be deactivated and activated on the Investment Settings page at any time.

The returns displayed on our platform are presented net of any applicable fees. This means that the presented return is what you should expect to achieve.

Once an investment is made, it cannot be canceled. We encourage all our investors to carefully consider their investment choices and ensure that they are comfortable with the terms and conditions before making a commitment.

Most of our investments are structured to provide monthly payouts, including the principal and the profit. This means that as an investor, you can expect to receive regular payments each month that comprise a portion of your initial investment (the principal) along with the profit earned on that investment.

Investors can expect to receive up to 15% per annum on their investments. This rate is subject to the performance of the underlying investments and market conditions.

The  Balanced Auto-investing strategy is designed for investors who aim to achieve the highest possible returns from the available opportunities. Our system will limit your investment per business to just 10% of your total portfolio. Receive and reinvest your monthly repayments to boost your returns up to 15% per year.

The Conservative Auto-investing strategy is designed for investors whose priority is capital preservation as opposed to making the most of all available opportunities. Our system will limit your investment per business to just 5% of your total portfolio. This would decrease the probability of loss but also decrease your potential return as the investing process will take longer. Receive and reinvest your monthly repayments to boost your returns up to 10% per year.

If the borrower fails to make the payment on the due date, Funding Souq contacts the borrower within 24 hours to request immediate payment and an explanation. If payment is not made, Funding Souq attempts daily collections for the next 5 business days. Investors are informed of the delay after 5 working days, marking the account as overdue. If payment is not collected within 90 business days, Funding Souq sends a pre-default email notice. If the borrower does not respond within 24 hours, a final default declaration is sent. Investors are notified of the default as soon as possible. Post-default, Funding Souq may file a police report and initiate legal proceedings for recovery.

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, through the Platform, if it comes across any information about a material change in the borrower’s circumstances after the commitment period. 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 through the Platform, as soon as practically possible if it comes across any information about material change in borrower’s circumstances during the commitment period. 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. There is a question on material change during commitment period.

Business undergo an extensive due-diligence process that is led by our credit team. The risk assessments analyse the businesses and financial performance as well as qualitative facts such as the strength of the management team, industry appeal etc. These are a fraction of the actual data points that we use to formulate a view on the individual business. The final stage in the due diligence process is a site visit for further assurance. Once a business clears all due diligence, it is listed on the Funding Souq marketplace. For more information about our credit process, you can click here.

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 365,000 ($100,000). 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 36,000 ($10,000) 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 is open to a diverse range of investors, including both individuals and corporate entities. Whether you are an individual looking to diversify your personal investment portfolio or a corporate investor seeking new investment opportunities, you are welcome to explore the options we offer.

Lenders may withdraw a commitment to provide funding if there is a material change in the borrower’s circumstances during the commitment period. Funding Souq will notify lenders of the change and request confirmation of their commitment within 5 business days. However, if the commitment period has ended and the opportunity is fully funded, lenders cannot withdraw their commitment. In that case, they must wait for repayments once the facility is disbursed and can withdraw from their repayments until the facility is fully repaid.