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Business Finance Calculator

Growing a business is an exciting journey. This finance calculator is designed to raise your awareness on the difference between the flat and reducing rates and how it impacts your business. Simply enter a few details to see how your installments play out under each method.
Finance calculator
Flat Rate to Reducing Rate (APR)
Monthly Installement
SAR
Reducing Rate (APR)
Total Profit
SAR
Total Payment
SAR
Reducing Rate (APR) to Flat Rate
Monthly Installement
SAR
Flat Rate
Total Profit
SAR
Total Payment
SAR
Difference between Flat vs Reducing Rate (APR)
Principal: The total amount borrowed.
Profit or interest rate: The associated cost of financing either via a Sharia compliant structure or an interest bearing loan. At Funding Souq all our facilities are Sharia compliant.
Tenure: The duration over which the financing needs to be repaid.

Understanding the Results: Flat vs Reducing rate
  • Form of Calculation: The flat rate calculates the profit or interest on the total principal amount. In the Reducing rate calculation, the profit or interest is accrued under a diminishing rate based on the outstanding loan amount.
  • Comparison Rate: Under the flat rate, the profit or interest is calculated on a fixed percentage compared to a reducing rate. The flat rate equals a higher reducing rate.
  • Calculations: The flat rate is much simpler to calculate than the reducing rate.
For Businesses
Quick and easy process
  • Apply online
    Submit an online application in 5 minutes.
  • Get approved
    After assessing a successful application, we will send you an offer within 72 hours.
  • Receive Funds
    Once you accept our offer, we will launch a fundraising campaign. You will get the funds within 24 hrs of completion.
  • Repayments
    Pay monthly, or settle your obligations early with no extra fees.
    Get funded
Take your business to the next level with finance that arrives in days. Funding Souq provides a platform that provides businesses with quick and affordable access to funding.
Frequently Asked Questions

Yes, businesses can have more than facility at any point in time. However, a business must have made several successful repayments on their existing facility prior being approved for a second facility.

Businesses undergo a due diligence process that is led by the credit team. The risk assessments analyse business and financial performance as well as qualitative facts such as the strength of the management team, industry sentiment and others. The process also includes a site visit.

Repayments can be made by bank transfers.

Businesses need to be established in Saudi Arabia with a minimum of 2 years of trading. The venture needs to have SAR 2 million of revenue, a strong track record and profitable or on path to profitability. All businesses will undergo extensive due diligence through the credit assessment process.

Campaigns needs to be fully funded in order for them to be classified as complete. In case it fails generate enough interest, the collected funds are distributed to their beneficial owners.

More FAQs

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