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Monthly repayments and short investment horizons
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0% Hidden Fees
The return you see is what you get
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Regulated by the Saudi Central Bank
Earn regular income up to 23% per year
Sharia compliant investing in small business finance.
Start investing-
Monthly repayments and short investment horizons
-
0% Hidden Fees
The return you see is what you get
-
Regulated by the Saudi Central Bank
We make private credit investing fast, safe, and easy
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Create an accountRegister as an investor in less than 3 minutes. -
Browse opportunitiesYou can invest manually or enable our Auto Invest feature. -
InvestDeposit funds and start investing. -
Monthly repaymentsChoose to withdraw your earnings or reinvest for maximum return.
Investing in Private Credit
| empty |
Private Credit
with Funding Souq
|
Real Estate |
Stock Market
(S&P500)
|
High Yield Sukuk or Bonds |
|---|---|---|---|---|
| Target Net Returns | 15% p.a | 8% p.a | 9.4% p.a | 6% p.a |
| Investment Horizon | As little as 3 months | Years | Varies | Varies |
| Diversification: Low correlation to other asset classes | ||||
| Regular Monthly Income |
Shariah Compliance
Funding Souq offers Shariah-compliant investment and financing solutions. We are dedicated to following Islamic principles and have a Sharia Supervisory Board ensuring compliance of each transaction.
Certified by the Dar Al Sharia
Investment
Calculator
Balanced Auto-investing
Conservative Auto-investing
Invested Amount
ʢ
Net Yield
%
Total Cash Return
ʢ
Who can invest on Funding Souq?
Individual Investor
The existing financing across all financing opportunities can up to ʢ 250,000. Additionally, investments in any single opportunity cannot exceed 25% of the opportunity's total amount.
Professional Investor
Professional investors don’t have an investment limit. To be classified as a professional investor you need to prove that your net worth exceeds $1m.
Corporate Investor
Companies that register as investors are classified as Corporate Investors.
Credit Parameters
Financial Capacity
Our Credit Team carefully analyzes the financial performance of SME borrowers, considering various factors to evaluate their financial capacity. We thoroughly assess the borrower’s ability to generate revenue, effectively manage cash flow, and fulfill their financial obligations. Our analysis encompasses several key areas of focus, including:
- Income Generation.
- Cash flow Assessment.
- Profitability and Ratio Matrix.
- Liquidity Ratio Evaluation.
- Working Capital Management.
- Debt Repayment Capacity.
- Capital Structure.
- Cash Cover in Bank Statements.
Credit History and Risk
Assessing the credit history and risk profile of SME borrowers is essential to determine their reliability and creditworthiness. The Funding Souq Credit Team carefully examines the following areas to gain insights into the borrower's past credit behavior and assess associated risks:
- Review how well the borrower has repaid loans to Funding Souq and other financial institutions.
- Outstanding Debt and Facility Utilization.
- Considering credit factors specific to the borrower's industry that may impact their creditworthiness.
Owner Character and Commitment
Assessing the background of all SME owners (>5% shareholding) is crucial in understanding their level of dedication and responsibility towards the business. The Funding Souq Credit Team evaluates the following points related to owner character and commitment:
- Do shareholders have family based in the KSA?
- Do shareholders have children in school in the KSA?
- Do shareholders own property in the KSA?
- How much debt do shareholders have in the KSA? and how much has been paid off?
- How much equity have shareholders invested in the business since conception?
- To what extent are shareholders withdrawing funds from the business?
- What are the shareholder’s current credit bureau scores?
External Sources
Funding Souq conducts additional layers of due diligence to ensure the
prospects are not advertised outside the platform nor are they seeking funding
on other platforms. Also, the firm uses a variety of established private and
public third parties to further supplement the internal risk analysis. These
include:
- Sanction list screening softwares
- Thomson Reuters World Check – Market Leading Screening Reports.
Our Credit Team carefully analyzes the financial performance of SME borrowers, considering various factors to evaluate their financial capacity. We thoroughly assess the borrower’s ability to generate revenue, effectively manage cash flow, and fulfill their financial obligations. Our analysis encompasses several key areas of focus, including:
- Income Generation.
- Cash flow Assessment.
- Profitability and Ratio Matrix.
- Liquidity Ratio Evaluation.
- Working Capital Management.
- Debt Repayment Capacity.
- Capital Structure.
- Cash Cover in Bank Statements.
Assessing the credit history and risk profile of SME borrowers is essential to determine their reliability and creditworthiness. The Funding Souq Credit Team carefully examines the following areas to gain insights into the borrower's past credit behavior and assess associated risks:
- Review how well the borrower has repaid loans to Funding Souq and other financial institutions.
- Outstanding Debt and Facility Utilization.
- Considering credit factors specific to the borrower's industry that may impact their creditworthiness.
Assessing the background of all SME owners (>5% shareholding) is crucial in understanding their level of dedication and responsibility towards the business. The Funding Souq Credit Team evaluates the following points related to owner character and commitment:
- Do shareholders have family based in the KSA?
- Do shareholders have children in school in the KSA?
- Do shareholders own property in the KSA?
- How much debt do shareholders have in the KSA? and how much has been paid off?
- How much equity have shareholders invested in the business since conception?
- To what extent are shareholders withdrawing funds from the business?
- What are the shareholder’s current credit bureau scores?
Funding Souq conducts additional layers of due diligence to ensure the
prospects are not advertised outside the platform nor are they seeking funding
on other platforms. Also, the firm uses a variety of established private and
public third parties to further supplement the internal risk analysis. These
include:
- Sanction list screening softwares
- Thomson Reuters World Check – Market Leading Screening Reports.
Credit Scores
The borrower is assigned a risk band (A, B, or C) based on a credit score which is calculated by our proprietary credit score card. The table below outlines the different risk bands and their relative score.
| A | B | C |
|---|---|---|
| 90 to 98 | 54 to 89.99 | 26 to 53.99 |
The overall credit score is based on 4 main credit parameters and their respective weighting as outline below.
Credit Parameters
Weighting
(%)
Risk Score
Financial Capacity (out of 47 points)
47%
A: 44 points or more
B: 26 to 43 points
C: 14 to 25 points
Credit history and risk (out of 34 points)
34%
A: 31 points or more
B: 18 to 30 points
C: 6 to 17 points
External sources (out of 10 points)
10%
A: 7 points or more
B: 5 to 6 points
C: 4 to 5 points
Owner character and commitment (out of 9 points)
9%
A: 6 points or more
B: 6 to 7 points
C: 2 to 5 points
Testimonials
A
Atef Amri
Manager
“ Very quickly became my favorite investment platform as an expat based in the Middle East. ”
I
Imtiaz Lograt
Dentist
“ Very easy to invest, great returns, would highly recommend. ”
S
Saleh Lzeik
Head of Digital Marketing
“ Trustworthy. ”
A
Adel Aljehani
Business Owner
“ Great returns and great customer service! ”
Mohammed Almesmari
Sales Director
“ The team was very quick to respond to my queries. Very smooth. ”
Christian Kunz
Head of Group Strategy and Innovation
“ The overall experience was simple & easy. I applied and got the approval in less than 48 hours. The rest of the process was very simple. ”
Frequently Asked Questions
Activating Auto Investing allows investors to invest in a portfolio of businesses instead of a single business. This reduces the investment risk and makes investing more convenient as our algorithm automatically allocates investor funds as per their pre-determined preferences.
The Balanced strategy is designed to make the most of the available opportunities on Funding Souq. Our system will allocate unlimited exposure to A-rated opportunities as these are fully guaranteed through our partnership with Sharjah Media City. Given that our B-rated opportunities are not guaranteed and are riskier, our system will limit your exposure to 10% of your total portfolio for these opportunities.
The Conservative strategy is designed to minimize your risk but with that comes lower returns as well. Our system will allocate your funds to only A-rated opportunities which are fully guaranteed through our partnership with Sharjah Media City.
Funding Souq only accepts credit worthy businesses after extensive due diligence has 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 a number of business 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. In order to minimize the risk of a business defaulting, businesses need to provide the necessary guarantees in line with Saudi Arabia practices. This includes an undated but signed promissory note for the total fund amount and at least one personal guarantee which is drafted under Saudi Arabia law.
Funding Souq doesn’t allow a investor to sell their investment or investment parts before the end of the finance contract.
Funding Souq will notify the Investors as soon as practically possible if it comes across any information about material change in borrower’s circumstances. It will provide details to the Investors of the material change, any change in their rights arising from this material change and subsequent actions Funding Souq intend to take.