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Below are the core features offered by debt-crowdfunding platforms in Saudi Arabia Funding Souq and Lendo!
In some ways, the platforms are strikingly similar: They each offer fast and secure financing solutions for SMEs. They also both boast promising returns for investors. And in either case, your investment or finance solution is fully sharia-compliant.
But dig into the details and you’ll find some interesting nuances. Whether you’re an investor seeking higher yields or a business in need of crucial funds, our detailed breakdown will help you decide which platform best suits your needs.
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Platform feature
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Funding Souq |
Lendo Platform |
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- SMEs apply to Funding Souq to fulfill their growth plans via working capital finance or fixed asset finance. In both cases the availed financing is intended to support the business’s growth. |
- SMEs through Lendo's invoice financing or purchase orders. - SMEs benfit from invoice financing for liquidity management as well as growth. Payments from their client can take between 3 and 6 months which could put strain on cash flows.
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- 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.
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The minimum investment is SAR / AED 1,000, which approximates to $270. |
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- In Saudi Arabia: |
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- Investors can expect a net yield of up to 15% and annual percentage yield (APY) of up to 30% as monthly repayments allow for compound return.
-To understand the difference between yield and APY (IRR) read our blog here. |
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On a monthly basis, allowing for reinvestment and compounding for maximum return. |
One time, at the end of the financing period. Financing periods do not exceed six months. |
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What are the fees for investors?
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The returns displayed on the platform are net of any applicable fees. The presented return is what you should expect to earn. |
Investors pay 20% of the profit made on each investment opportunity |
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Does the platform have an Auto-Investment option?
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Yes. Once enabled, the Auto-Invest system will automatically allocate your deposited funds or repayments into the marketplace based on your selected investment strategy. |
Yes. The Auto-invest feature at Lendo allows you to choose a risk strategy and set limits on how much to invest per opportunity. |
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Platform feature
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Funding Souq |
Lendo Platform |
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- Working capital loans that range from 3 to 12 months in duration.
- Fixed asset loans that extend up to 24 months. |
-Invoice Financing
-Purchase Order Financing |
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- 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.
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- Creditworthy SMEs in Saudi Arabia looking to engage in invoice financing (i.e. to get a cash advance on outstanding invoices).
- The business must have at least SAR 3 million in turnover and have been operating for one year. |
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- Request financing for periods of 3-24 months.
- Borrowers can later opt to go beyond 24 months. |
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What level of financing is available?
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Typically between SAR / AED 100,000 to 1,000,000, but up to a maximum of SAR/AED 7.5 million. |
Up to 80% of the value of an invoice, with a minimum of SAR 100,000 and maximum of SAR 7.5 million |
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- Administration fees: 2% to 3%
- Monthly profit rate: 1% to 1.5% |
- Management fees: 2% to 3%
-Monthly profit rate: 0.8% to 2% |
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How long does it take to get a funding decision?
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Are multiple funding facilities permitted? |
Yes. |
Yes |
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Are all finance and investment operations sharia-compliant? |
Yes,you can find out more details about our Shariah Certficate |
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Disclamer:
Funding Souq KSA is regulated by the Saudi Central Bank (SAMA). This communication is not directed at or intended to be acted upon by any Person in the DIFC.. Funding Souq operates Islamic Window, pursuant to which it's Shariah Supervisory Board (SSB) has reviewed the Shariah Compliant structure, to which this marketing material relates. SSB Members are from Safwa Shariah Advisory Pvt. Ltd., whose details are available on Funding Souq website. SME Financing carries a potential default risk which may result in loss of all or part of your investment, incur costs or delays in receiving payments.
