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Wed 18 Feb 2015 09:37 AM

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Dubai firm launches funding scheme to help SMEs balance their cash flow

Dubai-based Beehive's new platform offers financing against invoices due to companies within 60 to 120 days

Dubai firm launches funding scheme to help SMEs balance their cash flow

A Dubai-based peer-to-peer online lending platform has launched an invoice financing service to help local SMEs ease cash flow issues.

SME Invoice Financing product, a new offering of Beehive, the UAE’s first online marketplace for peer-to-peer (P2P) lending, is aimed at closing the gap between the moment a business issues an invoice and when it receives the actual payment.

The new solution is expected to boost working capital and improve cash flow of SMEs by unlocking the value of accounts-receivable to ease the dual challenges of rising inflation and late payments.

To develop the product, Beehive leveraged the power of peer-to-peer finance, also known as marketplace lending, which funded $9 billion in loans globally in 2014 and is forecast to deliver $1 trillion by 2025.

Through Beehive’s funding platform, businesses will be able to list invoices that are due within 60 to 120 days and receive financing within 24 to 48 hours at rates starting from 0.75 per cent per month, dramatically below alternative means of finance.

“The net result of this is Beehive’s promise of win-win: businesses gain fast access to competitive funding, while investors gain attractive short-term returns while diversifying their risk,” said Craig Moore, founder and CEO of Beehive.

Launched in October by Rick Pudner, the former group CEO of Emirates NBD, Beehive targets local SMEs which usually look for funding between AED100,000 ($27,220) to AED500,000 ($136,110).