10 things to know about applying for Business Finance on Beehive

10 things to know about applying for peer to peer lending on Beehive

We frequently get asked questions about applying for finance on Beehive. So If you are a small or medium sized business looking for funding, read on for more helpful tips.

  1. What type of businesses can apply for finance on Beehive? 
    We provide finance solutions for established and creditworthy SMEs in the UAE through our online marketplace. We have helped provide finance to a wide spectrum of SMEs operating in many different industries such as Food & Beverage, Healthcare and Consulting services. To apply for finance at Beehive, businesses must be profitable, registered in the UAE and have been trading for at least 2 years, with a minimum annual turnover of AED 2.5M. Check the full list of eligibility criteria here

2.What type of finance can I access?

Unsecured Business Finance: we offer business finance starting from AED 100,000 based on terms between 6 months and 3 years for a variety of purposes such as working capital, growth and expansion, refinancing and asset purchase. Find our more

Invoice Financing: a fast and short term finance option enabling your business to finance invoices due within 60 to 120 invoices within 24-48 hours. You choose which invoices you want to receive advances against. Find out more

3.What do we look at when we assess your application? 
Our experienced credit assessment team undertake a rigorous risk evaluation on all businesses that apply for finance, supported by third party credit bureaus. We look at 12 months’ bank statements, audited financial statements or management accounts and customer contracts and invoices to determine a decision regarding your application. We also like to personally meet with the business owner and team.

4.How long does the process take? 
It will take you only a few minutes to complete the online application form. When you send your application, our credit assessment team will review it and make a decision within 2 working days. Once your application is accepted, we list your finance request on our marketplace for a maximum of 14 days. If successfully funded, you will receive funds in your account within 7 days. Typically, the peer to peer lending process is faster and more efficient than conventional finance routes due to the online and streamlined nature of this model. Register your business here

5.What is the auction process? 
Businesses listed on the marketplace will see their finance request fulfilled via a reverse auction process. During the 14-day auction, the crowd of registered Beehive investors bid against each other to fund your finance request. This competitive bidding effectively drives down the cost of borrowing as investors bid to offer the most competitive rates. At the end of the 14-day period, you can decide whether or not to accept the final rate offered.

6.What rates will I be charged for business finance? 
Before your business finance is listed we will give it a risk band from A+ to D. The risk band reflects the risk associated with that specific finance request, not the business as a whole. All the businesses on our platform are deemed creditworthy and the risk band is a guideline for our investors to use when deciding which businesses to bid on. Based on the risk band, the rates vary from 6% to 22%.

Risk band A+ Risk band A Risk band B Risk band C Risk band C- Risk band D
6-12% 6-14% 8-16% 10-18% 12-20% 14-22%

 

  1. What fees do Beehive charge for business finance?
    The fees relate to the term of the business finance. Our terms range from 6 to 36 months. We do not charge early repayment fee. We also charge a AED 750 fee to cover the cost of the 3rd party verification checks.
6-12 Months 24 months 36 months
2% 3% 4%

 

  1. How are the repayments for business finance scheduled?
    The business will make repayments in monthly installments over the term of the business finance. The first repayment will be one month after your finance request closes.
  2. Who is funding my business?
    Your finance is funded by the crowd of investors that have registered on the Beehive platform. Every investor registering on Beehive is thoroughly checked to ensure they comply with our strict investor criteria. Individual investors invest varying amounts of money into your finance request. We have over 3500 sophisticated and high net worth investors already registered and this number is continually growing. More active registered investors mean more competitive bids and subsequently lower rates for businesses.
  3. Can I return to Beehive to apply for a second business finance? 
    Yes, you can apply for a second business finance request, however, in order to do so you need to have made at least 3 months of repayments of your first business finance.

If you are looking to apply for finance through the Beehive platform you can visit our website for more information, or register online

If you require further assistance contact us on +971 (0)4 550 6700 or at team@beehive.ae

 



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