This new invoice finance solution should help SMEs to boost their working capital and improve cash flow. The invoice financing tool is becoming increasingly popular as a method for companies to solve the problem of a lack of cash flow between the moment a business issues an invoice and when it receives the actual payment.
Craig Moore, founder and CEO of Beehive, commented:
“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. Everyone is very excited about the upcoming business finance opportunities we still have in the pipeline. I believe that, with the launch of our new invoice financing solution, larger investors such as funds and asset managers will soon realize that our platform is a great substitute for generating alternative returns, while supporting SMEs in the UAE economy.”
On the Beehive 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 month, which is markedly lower than any other means of financing businesses.
Rick Pudner, Chairman of Beehive, added:
“The launch of Beehive’s Invoice Finance solution marks another addition to our ongoing efforts to support SMEs in the UAE economy. SMEs represent 90% of total businesses in the UAE but are facing difficulties gaining access to credit as banks generally reject between 50-70% of SME loan applications, hampering growth. Beehive’s innovative online platform can help bridge that gap.”
Beehive is filling an important gap in the UAE market. The International finance Corporation (IFC) estimates that the current SME funding gap in MENA has reached approximately $260 billion. This is coupled with the fact that the Middle East has one of the highest rates of saving in the world, and so there is a lot of money that might be put to work via Beehive’s platform. Currently Beehive’s offering helps support 300,000 SME businesses in the UAE and its latest product will offer an extra layer of financial assistance to these businesses.