Beehive vs. Funding Souq

Review & Features Comparison

Overview

Founded in 2014, Beehive is among the earliest peer-to-peer lending platforms in the region. The company was acquired by e&, the UAE telecom giant e&.

Both Funding Souq and Beehive operate a crowdfunded model, connecting investors to established SMEs via an online platform.

Although very similar in nature, there are some differences which we seek to explore below.

Features Comparison

For Investors

Platform feature	Funding Souq	Beehive
What will I be investing in?	Business finance (loans) that the SMEs repays monthly.	Business loans as well as invoice financing and project financing.
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 Global (UAE) platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses	Beehive’s crowdfunding business is only live in the UAE. Investors from almost any nationality can participate in financing SMEs.
What is the minimum investment?	The minimum investment is SAR / AED 1,000, which approximates to USD 270.	The minimum required to set up an account is AED 5000 (USD 1361). However, once the account is set up, the minimum investment is AED 500 (USD 136).
What is the maximum investment?	In Saudi Arabia: Retail investors can invest up to SAR 250,000 per year. However, each investor’s commitment shouldn’t exceed 25% of the requested amount by the business. For professional (eligible investors) no limits apply. In the UAE: Retail investors can invest up to AED 365,000 per year and AED 36,000 per business	The most you can invest in one business through the platform as a retail investor is AED 18,000. The maximum you can transfer to Beehive in a calendar year is AED 180,000. However, it is expected that Beehive will double these allowances to reflect the latest change in regulation. These limits can be waived if classified as a professional investor.
What returns can investors expect?	Investors can expect an APR of 26% which equates to a net yield of 15% per annum	Investors can expect an average APR of 10-115 which equals a net yield of 6 to 7%.
When are investors repaid?	On a monthly basis, allowing for reinvestment and compounding for maximum return.	On a monthly basis for the business loan product and a one-time payment for the working capital product.
What are the fees to the investors?	The returns displayed on the platform are net of any applicable fees. The presented return is what you should expect to earn.	The returns displayed on the platform are net of any applicable fees. Beehive charges investors a one-off (and variable) fee of AED 40 when onboarding. Beehive also applies a 0.50% fee to any successful funding transaction.
Does the platform have an Auto-Investment option?	Yes. Once enabled, the Auto-Invest system will automatically allocate your deposited funds or repayments into opportunities based on your auto investing settings.	Yes. Beehive has an auto-bid, which, once enabled, will automatically place bids based on your risk band, tenure, and amount.
Is the platform Shariah-compliant	Yes, you can find out more details about our Shariah Certficate	Beehive has a Shariah-compliant offering.

For Businesses

Platform feature	Funding Souq	Beehive
What products are being offered?	- Working capital loans that range from 3 to 12 months in duration. - Fixed asset loans that extend up to 24 months.	-Term financing. - Working capital financing. - Project financing.
Who is eligible for borrowing?	- Creditworthy SMEs 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.	-To be eligible as a borrower, companies must be UAE-registered and trading for at least 12 months. - To be eligible for business funding, companies are required to be UAE-registered, have an annual revenue of AED 2 million.
What is the financing duration?	Request financing for periods of 3-24 months.	6-36 months for business financing, 60-150 days for working capital financing, and 3 or 4 months for SME microfinancing.
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.	AED 100,000 to AED 1 million for business financing, 80% of outstanding invoicing, and up to AED 100,000 in microfinancing.
What are the fees for borrowers?	- Admin fees: 2% to 3%. - Annual rate: 12% to 15%, depending on credit rating.	Working capital financing fees include: - Borrowing fee: 0.9% - 1.25% per 30 days. - Processing fee: 0.5% - 1.25%. - Unspecified pre-approval and processing fees

Invest with no hidden fees and get returns of up to 26%

Up to 26% return by financing SMEs

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