We’ve been getting a number of enquiries over the past weeks about how the Coronavirus could impact returns for Beehive investors, and we would like to let you know our view on this. We do not expect to see the same volatility that has been seen in the stock markets, as your return is fixed at the time you make your bid. This means that Beehive’s rates of return are not bound to changes in underlying interest rates and market sentiment.
You can see how your investments are currently performing by logging into your investor dashboard here.
We have been monitoring our active SME loans very closely since the Coronavirus outbreak and so far we understand that although a small number of SME’s have been impacted by current events, there has been minimal impact on loan repayments. We will, however, continue to monitor the situation and communicate any updates.
What we’re doing
We have been proactively contacting our SMEs to find out how they have been impacted and what measures they have put in place to ensure business continuity. We’ve also made changes to our lending criteria so we assess potential financial effects the Coronavirus may have on a business and consider this as part of our credit assessment process. We will continue to review our lending criteria and reduce lending to SMEs in industry sectors which could be financially affected by the Coronavirus.
As such, we have procedures in place to ensure we continue to serve our investors. In addition, in the possibility that our staff are unable to come into the office, or the situation in the MENA region worsens, we have the ability to work remotely and these processes and tools are live and have been tested.
With the Coronavirus outbreak currently impacting businesses across the GCC, we want to be transparent and keep you up to date with the status of your loans.
Our team has spoken to all businesses on the platform, and most should not struggle to make timely repayments. However, there are some businesses who have felt the economic impact of the Coronavirus and will struggle to pay on time.
We have devised restructured repayment plans with affected SMEs and sent notifications to all investors who will be impacted. You can log into your investor dashboard to check your notifications. We will be updating these weekly to keep you informed of the progress.
The issues being faced by SMEs are temporary, and we urge you to ride the storm with us. Q1 2020 has seen a record number of SMEs requesting finance, and we feel very positively for the future.
SMEs need your support to get through this time. We’ve come up with a list of alternative ways you can help whilst self-isolating which you can find here.