Beehive’s Evolving Due-Diligence

With thousands of investors trusting Beehive with their capital, it is of paramount importance that Beehive does whatever it can to ensure that only creditworthy businesses get listed on the marketplace.

With a market leading default rate of just over 1% and over USD 100M of finance written since conception, Beehive’s track record suggests that they have managed to uphold their standards despite having to meet the demands of an ever-increasing investor appetite.    

Even with an impressive past performance, Beehive recognises it's due-diligence process has to continuously evolve, and therefore is constantly looking at new & innovative ways of measuring borrower credibility and protecting investor capital.

Beehive has invested significant manpower to improve the accuracy of their financial analysis, whilst also introducing new analytics that look into the human behavior behind the borrowing business.

Examples of these developments are outlined below:

Property Monitor Database

Property Monitor offers users the ability to search residential sales, leasing transactions, off-plan sales and valuation data, with all data being updated on a daily basis by Dubai Land Department.

Beehive uses this as a way of verifying the value of the borrower’s assets against a Title Deed or mortgage document. With this information Beehive can not only gauge the extent to which the borrower is invested in the UAE, but confidently assess the value that could be availed in the event of borrower default.

High Asset Value = More capital available to service defaulted capital

Behavior Analysis

To further understand the creditworthiness and intent of the borrower, Beehive have partnered with a local fintech company to draw on their cutting-edge techniques in linguistic, sentiment & behavioural biometric analysis to monitor the behavior of the borrower throughout the application process.

Macro-Supplier Analysis

As part of Beehive’s standard due-diligence process, the borrower’s main suppliers will be contacted to understand if there have been any historical complications in collecting funds from said borrower.

For over 12 months, Beehive has been storing and amalgamating data across different sectors in the UAE. As the amount of collected data increases, Beehive will be able to observe quantitative working capital patterns within certain sectors and further understand the degree to which certain sectors may or may not face liquidity issues as a result of working capital conditions.

VAT

Historically, one of the main issues with SME lending in MENA has been the lack of reliable financial statements available to financiers. The introduction of VAT in the UAE back in Jan 2018 has gone a long way in improving the reliability of financial data.

For the last six months Beehive has requested that all borrowers provide their VAT return forms along with all other financial documentation. This means that Beehive is now able to verify the revenue & expense figures coming from their financial statements.

Automated Financial Statement / Bank Statement Analysis

Beehive has recently developed an in-house software that is used to perform analysis on the borrower’s financial & bank statements.

The Beehive credit team outlined what metrics were being analysed within each document, then using in-house technology, the logic was transformed into a proprietary code that analyses documents in seconds with zero chance of human error.



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