FAQs

Know Your Customer (KYC)

General

Sharia Processing

Common Reporting Standards (CRS)

Working Capital Finance (Businesses)

Business Funding (Businesses)

Investing

Business Funding (Investors)

Working Capital Finance (Investors)

Who is Beehive?

Headquartered in Dubai, Beehive is the first regulated digital SME lending platform since 2014. The platform became the first regulated platform in the region and is regulated by the DFSA.

What is digital SME lending?

Digital SME financing is a way of raising finance by asking a large number of people each for a relatively small amount of money. In simple terms, digital SME lending refers to individuals (investors) providing finance to businesses (customers) without the use of a conventional intermediary such as a bank.

Is Beehive Sharia compliant?

Beehive has worked with prominent Islamic legal advisors and Islamic finance industry experts to develop a Murabaha structure that complies with the principles of Sharia. The structure allows Islamic investors to take full advantage of the opportunities that Beehive has to offer while providing complete confidence that their values are adhered to and respected.

All “Beehive Sharia Compliant” finance requests are processed through the “Eiger Trading Platform” Commodity Murabaha platform. Finance requests that do not comply with the principles of Sharia are processed as a conventional finance structure and are not accessible to investors who have indicated they would only like to invest in Sharia compliant opportunities.

Is Beehive regulated and under what law does it operate?

Beehive P2P Limited is registered as a DIFC company with registration number (CL2352). Beehive P2P Limited is authorised and regulated by the Dubai Financial Services Authority under number F004422.

All contracts are drawn up under DIFC Law.

What is Beehive's Complaint Procedures?

In the event that you feel dissatisfied with any aspect of our service, you are encouraged to email our Compliance department at compliance@beehive.ae. The Compliance Department will then carry out an impartial review of the complaint with a view of understanding whether we acted fairly and within our contractual obligations. A final written response will then be provided.

If you do not feel your complaint has been resolved satisfactorily you may then refer the matter to the DFSA.

The DFSA is the independent regulator of all financial and ancillary services conducted within the DIFC.

Contact the DFSA:

Dubai Financial Service Authority
PO Box 75850,
Dubai, UAE
Level 13, West Wing, The Gate, DIFC
Phone: +971 (0)4 559 2108
Complaints Portal: https://www.dfsa.ae/en/MediaRelease/Complaints

‍Further information can also be found at www.dfsa.ae

‍A copy of Beehive’s complaints policy will be provided free of charge upon request.

How does the Mohammed Bin Rashid Fund for SME (MBRF) guarantee work?

The Mohammed Bin Rashid Fund for SME (MBRF) was created to help Emirati entrepreneurs and business owners with access to finance. Any Term Finance opportunity with the MBRF logo listed on the Beehive marketplace is either fully or partially covered by the fund’s capital guarantee scheme in the event of default. MBRF will guarantee the capital of SME loans under the scheme to either 50% if the business is partly Emirati-owned, or 100% if the business is fully Emirati-owned. The process is as follows:

All eligible businesses go through the standard Beehive credit & risk assessment process and must achieve a risk rating of C and above.
Their participation in the guarantee scheme is approved by the fund.
If the business is fully covered it is listed as an A+ Term Finance request, and if it is partially covered the 50% guarantee will be covered in the business description.
Loan terms will be 27 months and SMEs will be given an initial three month payment holiday. For the first three months investors will receive profit payments only. The loan will then follow a regular, 24 month term finance repayment structure from month four to month twenty seven, meaning investors will receive equal monthly installments of capital and profit.

In the event that the business owner does not repay the financing, any investors who own a part of the finance will be reimbursed 100% of their outstanding capital if the business is fully covered, and 50% if the business is partially covered. This will be payable 90 days after the fund is notified. Once Beehive receives the monies from the fund all affected investor accounts will be updated.

Every business request under the scheme is a Sharia compliant investment.

What measures are in place to ensure security around my data and the integrity of your platform?

The Beehive Platform operates on Microsoft Azure, an enterprise-class cloud platform known for its advanced security features, including encryption, identity and access management, and network security. These features ensure robust protection across data storage, application access, web communications, and back-office operations.

Beehive also integrates robust security solutions such as SIEM (Security Information and Event Management), Cyber Threat Intelligence, Managed SOC (Security Operations Center), and Extended Detection capabilities, significantly enhancing threat detection, incident response, and overall security posture.

Moreover, Azure’s infrastructure complies with stringent standards like ISO 27001 and GDPR, ensuring Beehive meets industry-leading security and privacy practices.

What contingency arrangements do you have in place to ensure an orderly run-off of your platform if you cease to trade?

As a DFSA regulated entity, Beehive has a contingency plan in place which is reviewed at least annually to ensure it remains up to date. Being regulated, Beehive has ring-fenced a minimum capital commitment which would be utilized if the business were to cease trading. As part of the plan all uninvested balances will be returned to investors nominated bank accounts and a statement of outstanding payments and repayment schedule will be sent to you within 10 days. Your financing and Murabaha contracts continue to be valid, legally binding and enforceable without Beehive and installments will continue to be collected as they fall due. All payments will continue to be made to our sister company, Beehive Services DMCC, under full common control, and this entity will continue to exist and therefore able to make regular disbursements to you as financing contracts are paid off. The capital set aside is enough for two years of operations, during which the majority of the finance contracts will expire. We will work with the business owners to accelerate their payment terms, where possible.

What is KYC?

KYC is an abbreviation for “Know Your Customer” which is a term commonly used for the client identification process. KYC is conducted to prevent money laundering, financial crimes and other unlawful activities, by verifying the identity and understanding the background of customers.

The Dubai Financial Services Authority (DFSA) has prescribed certain requirements relating to KYC norms for regulated financial firms including Beehive to “know” their clients. This would be in the form of verification of identity and address, providing information about employment, financial status and other demographic information.

Customer’s must be compliant with KYC requirements before borrowing or investing on the Beehive platform and ongoing KYC checks will be done to ensure your information remains up to date.

Why do you require a selfie?

As part of our KYC requirements we are obliged to verify your identity and as a number of investors are not met face to face, we require a way to establish your identity and proof of presence in order to prevent fraud. This is done through requesting a selfie with you holding your passport as part of the sign-up process.

What are the KYC requirements for a Beehive Investor account?

Individuals will be required to produce a proof of Identity (usually a passport or other equivalent documentation), a proof of address, information on occupation and source of funds information. This list is not exhaustive, and, in some cases, we may request additional information from you. Corporate investors will have to produce certain documents in relation to the constitution/registration in order to fulfill KYC requirements. Full details of required documentation for corporate investors can be obtained by emailing: info@beehive.ae

Are you required to categorize your customers based on risk assessment?

All DFSA regulated financial services firms are required to apply a risk-based approach when assessing customers. We do not disclose what risk categories our investors have been assigned and our Risk assessment process is internal only.

Can I sign up to be a Beehive investor although I am not a UAE resident?

We welcome investors from most nationalities and countries however we do have some restrictions due to local requirements, therefore please contact info@beehive.ae to discuss your personal circumstances and we will inform you if you are eligible.

What if I’m a student or unemployed, can I still invest?

You can still invest however we may require further information from you to understand how you will be planning to fund your Beehive account.

What happens to my account if I move away from the UAE?

As mentioned above, we can maintain an investor account for residence in most countries, however in the case you do intend to move outside the UAE, please contact info@beehive.ae to check whether you will remain eligible in the case you move to another country as restrictions do apply and need to be assessed on a case by case basis. In the case that we can no longer keep your account active, we will inform you and restrict your account from further funds to be added or further investments to be made. Your existing investments will remain to exist, and repayments will be added to your Beehive account as normal. You will be able to withdraw these repayments until the loan has been repaid in full at which your account will be closed fully.

What is the minimum age to become a Beehive investor?

Minimum age is 18 years old.

How can I fund my account?

Once your account has been enabled you will be able to add funds to your Beehive investor account through electronic bank transfer. We also accept cheques. We do not accept cash deposits.

What if I want to invest money on behalf of someone else?

We understand that there may be some investors who wish to invest money on behalf of their spouse, family members or friends. In this case we will require your KYC information in addition to KYC information for the person you are managing the funds for. Additionally, we also require an authorization letter that you are permitted to invest the funds on behalf of the beneficial owner of the funds.

What is Islamic Finance? What is Sharia?

Islam is more than a religion; it’s also a code of life that deals with social, economic and political matters. Muslims are expected to live according to Sharia (Islamic Code) which governs nearly all aspects of Muslim life, and hence Sharia imposes certain restrictions on finance and investments within the Muslim community. Islamic finance refers to the means by which corporations raise capital in accordance with the principles of Sharia, money must be used in a productive way and generating return on your money must be through legitimate and ethical trade or investment which includes an element of risk and promotes social justice. Generating interest on your money is seen as an effortless income and is not permitted in Islam. Sharia also does not permit trade or investment in unethical industries or commodities, such as: arms, gaming, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, entertainment and more.

Digital SME lending aims to build a community of investors and businesses where risks are shared and capital is channeled into real economic activity that would benefit the community. Essentially, P2P follows the basic Islamic principle of sharing risk for profit rather than the model used by banks which is transferring risk for profit.

Why does Beehive offer Sharia processing? What is Beehive Sharia processing?

Islamic investors have always faced challenges with diversifying their investment portfolios due to the limited investment options available that adhere to Sharia principles. This need required the development of alternative finance tools to better serve the Islamic investor markets and help create more diversified portfolios for better managed risk. Beehive recognized this gap and managed to work with prominent Islamic legal advisors, and Islamic finance industry experts to develop a structure that processes investments in a Sharia compliant way.

Islamic investors who wish to engage only in investments that comply with Sharia select the “Sharia Compliant investment only” option when they are registering to the Beehive platform. This allows Islamic investors to place bids only on finance requests that comply with Sharia. All businesses applying for finance are meticulously checked to ensure that the business activity and use of funds comply with the principles of Sharia. If the business activity and use of funds comply, Beehive identifies the request as “Sharia Compliant” and Islamic investors are able to place bids on the marketplace. Any finance requests that do not comply with the principles of Sharia are processed under a conventional finance structure, restricting Islamic investors from bidding on the request.

How are the Sharia finance requests processed? What is Murabaha?

Beehive processes all “Sharia Processing” finance requests through the “Eiger Trading Platform” Commodity Murabaha platform. “Murabaha” is a commodity-backed transaction that allows Islamic investors to buy and sell commodities at a profit on a deferred payment basis.

The word Murabaha is derived from the Arabic word Ribh that means profit and it is the most popular and most common technique of Islamic financing. Murabaha is also known as Mark up or Cost plus financing and it is estimated that that 80% to 90% of financial operations done under Islamic finance belong to this category.

Murabaha is simply a contract of sale in which a commodity is sold on profit where the seller is obliged to tell the buyer his cost price and the profit he is making. In a Murabaha transaction, the first party purchases a commodity today which is then sold at the current market value plus the agreed profit to the second party at an agreed upon deferred payment plan. The second party can then monetise the commodity by selling it today, at today’s value, and receive cash.

What is the “Eiger Trading Platform” commodity Murabaha platform?

The Eiger Trading Platform is a cloud-based trading system designed exclusively to provide a secure and efficient mechanism that facilitates the purchase and sale of Sharia-compliant assets for the commodity Murabaha requirements of Islamic financial institutions.

Eiger have appointed the services of an eminent Saudi Arabia-based Sharia scholar, Sheikh Dr Mohamed Ali Elgari, and he has declared that all the processes, operations and functionality of the Eiger Trading Platform satisfy all Sharia requirements.

How is Beehive certified as Sharia compliant?

The world recognised and respected, Shariyah Review Bureau (SRB), together with their team of esteemed Sharia scholars, have reviewed and certified the “Beehive Sharia Processing” in terms of operational processes, documentation, business activity and relationship management. The certification makes Beehive the first digital SME lending platform in the world to independently confirm its processes are compliant with Sharia principles.In addition, Beehive holds a DFSA license to ‘Operate an Islamic Window” and has an internal sharia auditor and external sharia auditor as required by the regulator. Beehive also has a 3-person independent Sharia Supervisory Board.

What is the Shariyah Review Bureau (SRB)?

Shariyah Review Bureau (SRB) have been providing professional Sharia advisory and Sharia audit services for more than 10 years to public and private businesses, including commercial and corporate debt, sukuks and Islamic equity markets, initial public offerings screening and investment banking practice, energy firms and information providers.

Licensed by the Central Bank of Bahrain, SRB serves clients from the US, UK, Switzerland, Canada, Hong Kong, Australia and GCC. In Saudi Arabia alone it holds a 21 percent market share of the Co-operative Insurance Firms Listed on the stock-exchange market, and 13 percent share of all Saudi Investment Companies licensed by the Capital Market Authority (CMA). Its service offerings span a broad set of complementary disciplines that include product certification, consultation, Sharia audit and equity screening. SRB has a scholarly presence in more than 12 countries, including the US, Europe, Africa, GCC and Asia, making it a unique Sharia consultancy body that can meet the true international business requirements of its clients.

For more information on SRB please visit www.shariyah.com

How is Sharia different from conventional investments?

A key purpose for imposing Sharia is to promote social justice. Sharia is more concerned with ethical, social, economic, and political impacts of investments on the economy and directs it towards responsible activity that benefits other people and the overall economy. Conventional finance does not have the same ethical or social considerations.

Does Sharia investment involve more risk?

Sharia and conventional investments involve the same degree of risk, however Sharia investments are processed in a different way and are limited to businesses that adhere to the principals of Sharia. Investment in business involved in unethical industries or commodities, such as arms, gaming, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, entertainment and more, is not permitted by Sharia.

What is Common Reporting Standard (CRS)?

To help fight against tax evasion and protect the integrity of tax systems, a new information-gathering and reporting requirement for financial institutions in participating countries is in place and referred to as the Common Reporting Standard (CRS). The UAE is one of the participating countries which has started reporting. For further information, please refer to the OECD website.

Who is reportable?

The CRS seeks to establish the tax residency of customers. Under the CRS, financial institutions are required to identify customers who appear to be a tax resident outside of the country where they hold their accounts and products and report certain information to our local tax authority. The local Tax Authority may then share that information with the tax authority where you are tax resident.

Why are you asking me for my jurisdiction(s) of tax residency?

Under the CRS, tax authorities require financial institutions to collect and report certain information relating to their customers’ tax status. If you open an investor account we are required to validate a number of details about our customers. As part of this process we will request you to answer a “self-certification” question and we are required to collect this information under the CRS.

How is my tax residence defined?

Please contact a professional tax / legal advisor or check the OECD website for more information on how to determine your tax residency, as Beehive is not at liberty to provide any tax advice. Please refer to the OECD website. for further information.

Will Beehive share my data with other parties?

Beehive is obligated to share the information with its local tax authority who will then in turn share the information with other tax authorities where the customer is a resident for tax purposes.

How often do we need to provide information under the CRS?

Ideally, the information needs to be provided once. Updated information shall be required in case of change in customer information and where this may indicate a change in tax residency status. Customers are encouraged to update their records accordingly. In addition, Beehive may ask for updated information as and when deemed necessary. For individuals, tax residence typically refers to any jurisdiction where customers are liable to pay income taxes or have an obligation to file their tax returns. This can be determined by where the individual works or lives. However, there are other contributing factors that are based on each jurisdiction’s tax residency rules. For further information, please refer to your local regulations, OECD website, or your tax/legal advisor.

What information is Beehive reporting to the tax authorities?

Under the CRS requirements, for all reportable accounts:

Name
Address
Jurisdiction(s) of tax residence
TIN(s)
Name of Reporting Financial Institution
Account number
Account balance
Gross proceeds paid or credited to the account

Will Beehive protect my data?

Beehive is subject to strict confidentiality requirements and data safeguards as outlined under our GDPR Privacy Policy and as per DIFC Data Protection Laws. As per regulatory requirements, the information is only exchanged with the tax authorities of the relevant country.

What will happen if I do not provide the required information?

CRS is a mandatory requirement of our account opening procedure. In case you do not want to provide the required information then we will not be able to go ahead with your request to open an investor account.

Where can I find further information and advice?

For further information on your tax residency, please refer to the rules governing tax residence that have been published by each national tax authority. You can also find out more at the OECD Automatic Exchange of Information portal. Common Reporting Standard (“CRS”) FAQs 2017 – Individuals. The information contained herein does not constitute tax/legal advice. For further information, please refer to your local regulations, OECD website, or your tax/legal advisor.

Is the CRS declaration mandatory for all customers like nationals of countries not participating in the CRS?

Yes. All new customers will be subject to CRS self-certification.

How do I register?

Click on the register link and complete the requested information.

Can I get finance against all of my Customers?

We will review your Customers and your debtor listing and agree which Customers will be applicable for Working Capital Financing. The Customers must be large businesses and have a strong payment track record with you.

What is the cost of financing?

The cost is defined by the risk rating you are given and the tenure of the funding you are seeking.

The actual cost will be between 0.75% and 1.50% per 30 days payable to the Investors. We also charge a one-off fee of between 0.50% to 1.25% per invoice written depending on the duration of the financing.

In addition, you will also be charged for the site visit (AED800) which is reduced from your first payment and we will charge you a banking transfer fee (AED100) for each transaction.

What is the term of the financing?

Investors set the term they wish to forward funds for which will be between 60 and 150 days.

How long will it take me to receive funds?

Assuming your physical invoices and supporting documents match the details uploaded, you should receive funds within 24-48 working hours.

Will I be given a credit limit?

Yes, we will set a credit limit with you. This can be amended at any point in time at our sole discretion.

How do I repay you the financing?

There are two methods:

‍1. Direct Method: Under this method, you give your Customers Beehive’s bank details and they pay Beehive the full invoice value. Beehive then repays you the un-financed element of the invoice.

‍2. Indirect Method: Under this method, your Customer repays you the invoice value and then you settled the Beehive financing and related costs directly with us.

Can I pay off financing early?

Yes, profit is calculated to the day so paying off your finance early decreases your cost.

What if my Customer is late in paying the invoice?

When you ask for financing, you will insert your expected payment date as opposed to the actual terms. If your Customer pays you later than you expected then Beehive allows at its discretion, a 30 day extension period. After that, the financing must be repaid or you will be in default. A new Murabaha contract will be established at the previously agreed profit rate. Profit will then accrue based on the terms of this new contract

Can I part settle individual invoices

Individual invoices cannot be partly repaid.

Do you ask for the assignment of invoices?

We do not ask for the assignment of invoices.

What happens if my request is either not 100% filled or is oversubscribed?

Your request must be 100% filled. If it fails to meet the full request, the request is deemed incomplete and all investor monies are released and you will not receive your finance request.

An oversubscription of your request is not possible as the request closes as soon as it is full.

What are the minimum and maximum amounts that you fund?

Currently, we are able to offer financing between 200,000 and 2,000,000 on terms of 6–36 months.

How do I make repayments?

All repayments on Beehive are made either through electronic monthly repayments or monthly post-dated cheques in line with UAE banking practices.

What are your eligibility criteria for business clients?

You must be an established UAE-based business (at least 2 year of trading) with an annual revenue in excess of aed2m, a growth track record and be either profitable or be able to demonstrate a path to profitability. All business applications go through a detailed credit assessment covering the above and more.

Can I pay back early? Are there any penalties for early repayment?

Yes, you can pay back early. There are no penalties or charges for early repayment of your finance at Beehive.

How will I be checked?

All businesses applying for finance request on Beehive need to provide the necessary financial and business documentation in order that a full risk assessment can be completed. The information Beehive requests is in line with regional bank financing.

Can I have multiple Business Funding requests on Beehive’s platform?

Yes, businesses can have more than one active finance request at any point in time. Please note that any new application will be subject to a full credit assessment. Furthermore, the business must have made a number of successful repayments on their existing facilities.

What fees do you charge?

Businesses will pay a completion fee based on the finance term of 3.5% as per below:

Charge for 1 year finance = 3.5% of principle amount
Charge for 2 years finance = 3.5% of principle amount
Charge for 3 years finance = 3.5% of principle amount

You will also be charged for the site visit (AED800) and the banking transfer fee (AED100)

Does my business need to be based in the UAE?

Currently Beehive only accepts applications from UAE based businesses.

Will I be notified of any significant changes to the business?

If there is a material change to the business, you will receive a notification to your investor dashboard. If this material change takes place during the commitment period, you have the right to withdraw commitment, and the bid amount will be released back to your Beehive account.

Can you describe the funding process?

As per our Investor T&Cs we provide funding against new opportunities in the following order: (1) Institutional Investors; (2) Professional Investors; and (3) Retail Investors. This prioritisation ensures swift funding, given that most of our funding originates from institutional and professional sources, and also allows opportunities to be filled at a faster speed. In some cases, certain opportunities are filled fully by institutional investors due to (i) the size of the request; or (ii) the volume of opportunities exceeding the funds available from retail investors. This applies to both Conventional and Sharia Investors.

What happens if my request is either not 100% filled or is oversubscribed?

How does Beehive work?

Beehive is a digital SME lending platform. Digital SME lending is a form of crowdfunding and refers to investors providing finance to businesses without the use of a conventional intermediary, such as a bank. Our online platform directly connects creditworthy businesses looking for funding with investors looking to support their growth.

Do you accept investors residing outside the UAE?

Beehive welcomes all applications from most nationalities even if they are not UAE residents, however certain restrictions apply due to local regulations.

What fees do you charge?

All fees for Business Funding requests are shown net of our fees and so the rate you see is the rate you will receive (excluding bad debts and defaults). The only other fee we charge is 0.50% which is applied to any successful transfer facility transactions.

How is the monthly profit calculated?

Accepted offers are repaid via equal monthly installments and each amount is paid directly into your Beehive account. The profit rate is fixed at the time you make your bid.

Who will run the investment strategy?

Investors will run the strategy. Beehive does not provide guidance on which business to choose for investment.

How do I become a Professional Investor?

To be reclassified as a Professional Investor, you must contact investors@beehive.ae. You will be invited to meet a Beehive Investment Executive to discuss your understanding of the risks associated with becoming a professional investor and to determine if you have the relevant financial or investment experience. You will also be required to provide proof that you have net assets in excess of $1m excluding your primary residence.

What is the minimum amount required to open an account on Beehive? And what is the minimum/maximum bid?

You can join Beehive by setting up an account with as little as AED 5,000. The minimum bid on an individual business is AED 500.

To comply with DFSA regulations, your maximum exposure to one business on Beehive (across multiple products and requests) as a Retail Investor is AED 36,000.

What is the source of the borrowing and liquidity for each business?

We gather information on source borrowing and liquidity from the following key documents during our credit and risk assessment process:

– Bank statements of the borrowing entity
– AECB reports of the borrowing entity and its stakeholders
– Financial statements for the past three years of the borrowing entity (optional)
– Facility letters, if the borrowing entity has existing loans with other banks or financial institutions.

How does the auction / bidding process work?

Making investments in Beehive is processed through Auto-bid Setting. The configurability settings for investors can be grouped as follows:

1. Risk Rating Selection
The investor will opt in and out of the following risk-rating buckets:

• A+ / A
• B+ / B
• C
• D

This parameter is applied across all products and not set at the individual product level.

2. Product Split Selection
Investors will be presented with the following three options. Each option specifies the TF:WCF split that will be applied to the investor’s account.

• 70:30
• 50:50
• 30:70

Using an example where an investor has AED 100K in their account and selects the 70:30 option. That means that no more than AED 70K can go into TF and no more than AED 30K can go into WCF.

On what basis is the rate chosen?

The rates are as follows:

Rating

12 months

24 months

36 months

A+

9.50%

11.00%

12.00%

12.50%

13.50%

14.50%

B+

13.25%

14.25%

15.80%

14.00%

15.00%

16.50%

15.00%

16.50%

18.00%

C-

17.00%

18.00%

N/A

19.50%

21.50%

N/A

The average rate of return (ARR) is calculated on a reducing capital balance basis.

You can find out more about our risk bands system here

How am I repaid and how is my profit rate calculated?

Accepted offers are repaid via equal monthly installments and each amount is paid directly into your Beehive account. The profit rate is fixed at the time you make your bid.

The business then repays the financing. The monthly installment comprises capital and profit and the profit is calculated off a reducing capital balance (ARR). As an example, if you invested AED 5,000 over 24 months at a 11% profit rate then your repayment schedule would be as set out below. Each month you would receive AED 233.04 and over the 24 month term you would receive AED 592.94 profit.

To maximize your return on invested money on the platform, you should reinvest the monthly installments into new requests. We recommend that you set your Autobid settings to assist you achieve strong returns.

Rating

Opening Capital Outstanding

Capital Repaid

Profit Repaid

Total Repayment

Closing Capital Outstanding

5,000.00

187.21

45.83

233.04

4,812.79

5,000.00

187.21

45.83

233.04

4,623.87

5,000.00

187.21

45.83

233.04

4,433.22

5,000.00

187.21

45.83

233.04

4,240.82

5,000.00

187.21

45.83

233.04

4,046.65

5,000.00

187.21

45.83

233.04

3,850.71

5,000.00

187.21

45.83

233.04

3,652.97

5,000.00

187.21

45.83

233.04

3,453.41

5,000.00

187.21

45.83

233.04

3,252.03

5,000.00

187.21

45.83

233.04

3,048.80

5,000.00

187.21

45.83

233.04

2,843.71

5,000.00

187.21

45.83

233.04

2,636.74

5,000.00

187.21

45.83

233.04

2,427.87

5,000.00

187.21

45.83

233.04

2,217.08

5,000.00

187.21

45.83

233.04

2,004.37

5,000.00

187.21

45.83

233.04

1,789.70

5,000.00

187.21

45.83

233.04

1,573.07

5,000.00

187.21

45.83

233.04

1,354.45

5,000.00

187.21

45.83

233.04

1,133.83

5,000.00

187.21

45.83

233.04

911.18

5,000.00

187.21

45.83

233.04

686.49

5,000.00

187.21

45.83

233.04

459.75

5,000.00

187.21

45.83

233.04

230.92

5,000.00

187.21

45.83

233.04

0.00

5,000.00

592.94

5,592.94

Where is my money held and how is it protected?

Investor funds on Beehive sit in a fully-segregated client monies account operated by Emirates NBD that complies fully with the DFSA’s Conduct of Business module, Application 5.

What fees do you charge?

All fees for Term Finance requests are shown net of our fees and so the rate you see is the rate you will receive (excluding bad debts and defaults). The only other fee we charge is 0.50% which is applied to any successful transfer facility transactions. Please note that for adding funds in your Beehive account, your bank may charge a transfer fee which will be deducted from the amount you transfer to your Beehive account.

How can I withdraw my funds?

All repayments and profit accrued will be credited to your Beehive Account on the platform. You can then choose the “withdraw funds” option on the “dashboard” and follow the steps, you will then receive the funds in your desired bank account within 3 working days. As per Beehive’s Terms and Conditions, investor funds cannot be withdrawn until 90 days have passed from the date funds were transferred as part of our anti-money laundering procedures. There may be bank charges associated with withdrawals.

My account is on wind-down – what does that mean?

This means your account has been suspended due to out of date or outstanding investor documentation, which is required to be updated and maintained for regulatory purposes. Our Beehive team will initially attempt to obtain these from you and your account will only be suspended in the case of no response or due to insufficient documentation received. Whilst your account is in wind-down, you will have full access to your dashboard but will only be able to post financing parts on the transfer facility and request withdrawals. You will not be able to make any bids (including via Autobid) or make transfer facility purchases. Your account will be reactivated once the required documentation has been provided.

How do I become a Professional Investor?

Are there limits over the amounts I can lend to any one business and the amount of new funds I can add in a 12-month period?

As a Retail Investor, your maximum exposure to one business on Beehive (across multiple products and requests) is AED 36,000. Our platform automatically places this restriction on your requests.

The maximum funds you can add in a calendar year (January-December) is AED 360,000. You can review the remaining amount by clicking on the ‘Add Funds’ tab on your dashboard.

These limits are put in place to limit your exposure to any business / platform and are set by our regulator. If you would like to exceed these limits, you must be classified as a Professional Investor.

How can I register as an investor?

Simply click on the “register” option showing on the top right corner of our website and fill in the required information. Once done you will receive an e-mail requesting copies of your passport and proof of residence (i.e: Emirates ID, tenancy contract, DEWA bill or employment letter) which you will need to send to investors@beehive.ae. Once completed, your details will be verified and you will receive an e-mail within 2 to 3 working days notifying you that your account on Beehive has been activated. In some cases additional documents may be required.

To become an investor, you will be asked a number of questions to ensure you understand the risk of investing on an alternative asset platform such as Beehive.

To be eligible to become an investor, you must complete the registration process and pass Beehive’s internal KYC and AML procedures.

Is my Investment secured against specific business assets?

Investment in Beehive is intended to support business expansion, for areas such as working capital and growth financing, and therefore are unsecured against specific assets. To reduce the risk of default, all businesses must provide the necessary guarantees in line with UAE practices. This includes (i) an undated but signed cheque for the total facility; and (ii) at least one personal guarantee which is drafted under DIFC Law.

In the event there is a non-performing loan (NPL) of more than 90 days (i.e. a default), or it’s a skip case, and the business is not maintaining communication with Beehive regarding their intention to repay, the security cheques may be exercised. Where the business has an NPL and has agreed a repayment plan, the security being held will not always be enforced.

What is the minimum amount required to open an account on Beehive? And what is the minimum/maximum bid?

How do you assess businesses which are listed on the platform?

Each business undergoes a rigorous risk assessment undertaken by our experienced internal risk team and further supported by robust on-site verification. Only successful businesses will be listed on the Beehive marketplace.

Each finance request is given its own rating based on a multiple number of data points which contribute towards an overall risk band. Using our own proprietary risk model, we look at both quantitative and qualitative measurements, including revenue growth, profitability, strength of management team, sector competitiveness, etc. The metrics which are provided on the platform are a summary of the multiple data points we review during our risk assessment process.

We are committed to providing accurate and reliable information about a business. However, our findings are based on the information provided by the business and third parties during our facilitation. While we strive to ensure that this information is accurate and up to date, please note that there are limitations to the due diligence conducted from any inaccuracies or omissions in the information supplied to us, which should be carefully considered. Learn More

Checks and only allow creditworthy business to apply for finance on our platform, no investment can ever be entirely risk free and even creditworthy businesses may default. A fundamental principle of Beehive is that we always encourage our investors to diversify their investments across multiple businesses to lower their risk of capital loss.
Since this is an unsecured investment, in cases where a business defaults, the risk is borne by the investor. Beehive will do everything in its power to collect the dues and will start legal action if deemed relevant.

For accounts overdue between 61 and 90 days, the borrower will receive ongoing payment reminders and calls from both the Business Development (BD) and Collections teams. An AECB check is also performed. If the situation remains unresolved, the case is escalated to a third-party collections agency. This agency is responsible for taking further legal action, including filing police reports and legal cases, to ensure the borrower remains within the country until the issue is resolved.

How can I exit an investment early?

Beehive operates a transfer facility which gives investors the option to transfer outstanding investment parts acquired on Beehive to other investors on the platform. Investments can only be transferred on the transfer facility once the business has successfully made a repayment. Note that there is no guarantee that a financing part put up for sale on the transfer facility will be purchased.

What are the risks and what happens in the case of default?

At Beehive, we only allow established creditworthy businesses onto our platform and our experienced credit assessment team undertake robust rigorous risk checks on all businesses that apply for listing on the platform in addition to obtaining all necessary legal documentation as part of our assessment. Although we undertake detailed risk checks and only allow creditworthy business to apply for finance on our platform, no investment can ever be entirely risk free and even creditworthy businesses may default. A fundamental principle of Beehive is that we always encourage our investors to diversify their investments across multiple businesses to lower their risk of capital loss.

Since this is an unsecured investment, in cases where a business defaults, the risk is borne by the investor. Beehive will do everything in its power to collect the dues and will start legal action if deemed relevant.

For accounts overdue between 61 and 90 days, the borrower will receive ongoing payment reminders and calls from both the Business Development (BD) and Collections teams. An AECB check is also performed. If the situation remains unresolved, the case is escalated to a third-party collections agency. This agency is responsible for taking further legal action, including filing police reports and legal cases, to ensure the borrower remains within the country until the issue is resolved.

Why do you require my bank details, passport and residential proof in the registration process?

As per the regulations set by the Dubai Financial Services Authority (DFSA), all regulated financial services firms need to maintain valid identity documents and information for their customers. As part of this, we have to understand who you are, your source of funds and your previous dealings. We will be in touch with you from time to time to inform you regarding any document requirements. We do not have the power to take money from your bank account; you make all transfers into a segregated bank account. We need your bank details so that if we are asked to return funds, we know which bank account to pay them into.

Can I be an international investor?

Beehive welcomes all applications from most nationalities even if they are not UAE residents, however certain restrictions apply due to local regulations.

Who is the Business, Customer and Investor?

You are the Investor and you enter a Finance Contract between yourself (with potentially other Investors) and the Business who has supplied the goods or service to the Company.

Who actually provides the finance funds?

The contract is between you as the Investor(s) and the Business. Neither Beehive nor the Customer is party to the Finance Contract.

How can I register as a Working Capital Finance investor and what is the criteria?

To become a Working Capital Finance investor you need to be registered and have a minimum of AED5,000 in your account. To register for Working Capital Finance please contact investors@beehive.ae.

I’m already an Investor on Beehive, can I automatically invest in Working Capital Financing?

Working Capital Finance is already available on your account once enabled. You just have to set your allocation for Working Capital Finance (70:30, 50:50, 30:70)

I am an investor for Business Funding and Working Capital Financing, how do I set the allocation of my funds?

You can set the amount of your funds allocated to Working Capital Financing through the Auto-bid setting page of your Dashboard.

How does the bidding work?

Investors set their Auto-bid Parameters, and when a Business seeks finance, the Business will enter their invoice details, and our Platform automatically matches the finance request with funds available from the Investors based upon the Investors’ Auto-bid preference. This ensures that finance can get to Businesses within 24 working hours, which is critical for them.

How do I set my Working Capital Financing Parameters?

Can I amend my Investment Parameters once they’re set?

Yes, you can amend your parameters whenever you wish to. These will be applied to both products on new bids from Term Finance and Working Capital Finance.

What term do I finance for?

You set the term of how long you wish to finance which is between 60 and 120 days. At Beehive’s discretion, a Business may also request an extension period of up to 30 days and so payment may be up to 30 days longer than you have set. Note that profit continues to accrue if payment is later than requested.

How do you select your Businesses that are included on the platform?

We undertake a thorough review of the Business and only allow them to request finance against large established Customers that have a strong payment track record with that Business.

How does Beehive receive the money from the Business?

The Business can opt to (i) have direct payment, where the Customer pays Beehive directly; or (ii) have indirect payment, where the Customer pays the Business and then the Business pays Beehive the capital, fees and charges. You can see whether Businesses have elected for Direct or Indirect Payment on the Businesses and Customers page.

What are your fees?

All rates are stated net of investor fees and there are no other fees.

When do I receive my funding back?

You will receive your funds including the profit gained in your Beehive account when the Customer or the Business pays us. Profit is calculated to the day so if a Business pays early, the forecast profit will be lower. A new Murabaha contract will be established at the previously agreed profit rate. Profit will then accrue based on the terms of this new contract.

What if a Customer / Business is late in paying?

The Business requests finance for the expected payment terms rather than the actual ones stated on the invoice. Therefore, payment should closely mirror the requested finance. However, a Business also has a 30 day Grace Period above and beyond the requested payment term. A new Murabaha contract will be established at the previously agreed profit rate. Profit will then accrue based on the terms of this new contract.

Are the invoices insured against bad debt?

No they are not, although we are currently reviewing this to see if there is an economically feasible solution.

What if the customer does not pay or the Business defaults?

The finance contract is between you and the Business (not the Customer). Therefore, the Business is liable to repay the funds. If a Business defaults then we will decide the optimal route to collecting dues.

Are the invoices assigned and do you have recourse over the Customers?

No, the invoices are not assigned to Beehive or you as an Investor, and neither you nor we have right of recourse over the Customer.

What security do you hold against the Business?

Although this is unsecured financing, we hold an undated security cheque from each Business for their full agreed credit limit and personal / corporate guarantees.

Is there a minimum amount that I have to invest on the platform?

Yes, you must invest a minimum of AED 5,000 on the platform.

What rate of return can I expect?

The rates stated below are shown after Beehive’s fees.

Risk Rating

SME Rate

Investor Rate

60 Days

90 Days

120 Days

A+

1.09%

0.72%

0.80%

0.96%

1.17%

0.80%

0.88%

1.00%

B+

1.25%

0.84%

0.92%

1.04%

1.33%

0.88%

0.96%

1.08%

1.42%

1.00%

1.12%

1.36%

D (C-)

1.70%

1.12%

1.36%

1.60%