Percent vs. Funding Souq

Review & Features Comparison

Overview

Crowdfunding platforms offer huge perks: market-beating rates of return, an incredibly diverse range of investments, and low barriers to entry for small investors. And for borrowers, the platforms typically offer quick turnaround – linking them to the financing they need, right when they need it.

But nowadays there’s a dizzying number of platforms. So which ones offer the best returns? Which have hidden fees? Which can grow your money with minimal effort?

Perhaps you’ve come across Percent, a U.S. based private credit platform that lets you invest in a variety of short duration investments. In this post we’ll compare Percent with Funding Souq, a sharia-compliant private credit platform that lends to SMEs in the UAE and Saudi Arabia and is open to global investors.

The bells and whistles may look similar, but the platforms offer very different options. Below is a breakdown to help you choose what’s best for your money.

Features Comparison

For Investors

Platform feature

Funding Souq

Percent

As an investor, what will I be investing in?

SME finance (private credit) for working capital or fixed asset purchase.

In both cases the availed financing is intended to support the business’s growth.

A wider range of private credit opportunities including merchant cash advances, venture debt and consumer loans.

Investors typically invest in three main asset classes: asset-based securities, corporate loans, and as a limited partner investing in a private fund.

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.

Percent is only available to accredited investors in the U.S. with U.S. bank accounts.

To qualify as an accredited investor, you typically must either:

- Earn over $200,000 in income per year or $300,000 jointly with spouse.

- Have a net worth over $1 million

- Be an investor with professional certifications like Series 7, Series 65, and Series 82 licenses.

- Be an LLC, fund, or entity with at least $5 million in assets under management

What is the minimum investment?

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

The minimum investment is $500, though some deals may have higher minimums.

What is the maximum investment?

In Saudi Arabia:

-Retail investors can invest up to 250,000 per year.

In the UAE:

- retail investors can invest up to AED 365,000 per year and SAR/AED 36,000 per business

There is no maximum investment amount.

What returns can investors expect?

Investors can expect a net annual percentage yield (APY) of up to 26% as monthly repayments allow for compound return.

The latest Q3 performance overview highlights net returns of 13.48% over the past 12 months.

Potential investors set the minimum APY they’re willing to accept on any deal on the platform. In turn, the order book will fill with the lowest minimum returns first, so setting a higher APY will make it less likely you secure a deal.

When are investors repaid?

Principal and profit are paid on a monthly basis, allowing for reinvestment and compounding for maximum return.

Interest payments are typically made monthly but can vary based on the offering. The principal is generally paid on maturity.

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 10% of the listed interest rate as fees on any deal.

For example, on an investment listed with a 15% interest rate, investors pay 1.5% in fees, and net interest to investors is 13.5%.

Does the platform have an Auto-Investment option?

Yes.

Once enabled, the Auto-Invest system will automatically allocate any available funds based on your selected investment strategy.

No.

In order to invest, you can browse Percent’s platforms with deals that align with your risk and return appetite.

When deals mature, you choose whether to redeem the cash or roll over your principal and interest to invest in other deals.

For Businesses

Platform feature	Funding Souq	Percent
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.	Asset-based financing and corporate loans that can carry terms of several months or several years
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.	U.S.- based companies seeking debt capital, typically with assets like factored invoices, merchant cash advances, and trade finance receivables.
What is the maximum financing duration?	Request financing for periods of 3-24 months.	Loan terms run from a couple months to a couple years. The average loan term in 2023 was 14.1 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.	Borrowers request the level of finance needed. In 2023, the average deal size was $1.5 million.
What are the fees for borrowers?	- Administration fees: 2% to 3% - Monthly profit rate: 1% to 1.5%	Rates reflect the current interest rate e nvironment
Are multiple funding facilities permitted?	Yes.	Yes.
Are all finance and investment operations sharia-compliant?	Yes, you can find out more details about our Shariah Certficate	No

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

Up to 26% return by financing SMEs

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