Funding Souq is Officially in Saudi!
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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.
Funding Souq is open to all nationalities although there are some regulatory restrictions.
Funding Souq requires the above documents to comply with the Dubai Financial Services Authority (DFSA). As per regulatory requirements, all regulated firms need to maintain valid ID documents and client information. This requires us to understand your identity, source of funds and previous dealings. If need may be, we might contact you for additional documents as the previous list is non-exhaustive. Funding Souq cannot withdraw money from your account and all deposits will be made by you transferring money into a segregated bank account.
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.
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.
Click the “Get started” button on the homepage and follow the steps. Upon completing the online registration process including accepting the Terms and Conditions, you will receive an e-mail requesting passport copies and proof of residence (Emirates ID, tenancy contract, utility bill or employment letter) which you will need to send to [email protected]. Your details will be checked, and you will be notified that you have been successfully onboarded within 3 working days. At times, additional documents may be required.
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.
An investor account enters “wind down” status once it is suspended due to mandatory documentation being out of date. The Funding Souq team will contact you for the required document and only in case of no reply or insufficient documents. If your account enters “wind down” status, you will only be allowed to make fund withdrawals. Once the required documentation has been provided, your account will be re-activated.
Repayments will be deposited to your Funding Souq account on the platform from which you will be able to withdraw funds under the “Transfer” tab. Once a “withdraw request” is initiated you will receive the funds within 3 working days in your bank account. As per our Terms and Conditions, investor funds can only be withdrawn after 90 days from the date of deposit. This is to satisfy our anti-money laundering procedures.
Investor funds are kept in a fully segregated client monies account operated by Emirates NBD that complies fully with the DFSA’s Conduct of Business module, Application 5.
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.
Businesses undergo a comprehensive due-diligence process that helps Funding Souq determine their riskiness. We analyze each business’s financial performance, credit score, and credit score of its director/s. Depending on the collected data, we formulate a view and assign a credit rating to the business. This credit rating determines the pricing at which the business can borrow on the platform.
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.
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