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Frequently Asked Questions
Yes, it can be deactivated and activated on the Investment Settings page at any time.
The Balanced strategy is designed to make the most of the available opportunities on Funding Souq. Our system will allocate unlimited exposure to A-rated opportunities as these are fully guaranteed through our partnership with Sharjah Media City. Given that our B-rated opportunities are not guaranteed and are riskier, our system will limit your exposure to 10% of your total portfolio for these opportunities.
The Conservative strategy is designed to minimize your risk but with that comes lower returns as well. Our system will allocate your funds to only A-rated opportunities which are fully guaranteed through our partnership with Sharjah Media City.
Auto-Investing is a feature that allows you to invest your available funds in a hassle-free manner. If enabled, our system will automatically allocate your recently deposited funds or your repayments into live opportunities on the Marketplace. There are 2 types of Auto-Investing strategies, Balanced and Conservative, and these are designed to maximize your returns on a risk-adjusted basis.
Funding Souq is open to all nationalities although there are some regulatory restrictions.
Funding Souq requires the above documents to comply with the Dubai Financial Services Authority (DFSA). As per regulatory requirements, all regulated firms need to maintain valid ID documents and client information. This requires us to understand your identity, source of funds and previous dealings. If need may be, we might contact you for additional documents as the previous list is non-exhaustive. Funding Souq cannot withdraw money from your account and all deposits will be made by you transferring money into a segregated bank account.
Funding Souq only accepts credit-worthy businesses after extensive due diligence has been undertaken to ensure their creditworthiness. However, that doesn’t mean that risk is fully eliminated, and defaults can still occur. That is exactly why we encourage our investors to diversify their exposure across several businesses and hence lower the risk of capital loss. As an unsecured facility, the risk is borne by the investor. Funding Souq is committed to exercising everything in its power to collect the funds and will initiate legal action if deemed relevant. To minimize the risk of a business defaulting, businesses need to provide the necessary guarantees in line with UAE practices. This includes an undated but signed cheque for the total loan amount and at least one personal guarantee which is drafted under DIFC law.
Funding Souq doesn’t allow a investor to sell their loan or loan parts before the end of the finance contract.
Funding Souq will notify the lenders as soon as practically possible if it comes across any information about a material change in the borrower’s circumstances. It will provide details to the lenders of the material change, any change in their rights arising from this material change, and subsequent actions Funding Souq intends to take.
Funding Souq will notify the lenders as soon as practically possible if it comes across any information about material change in borrower’s circumstances. If lenders have not already funded any campaign, Funding Souq will request lenders to re-confirm their commitment within 5 business days. Funding Souq will have to cancel the funding commitment if the requisite confirmation from the lender is not received within the prescribed period.
Business undergo an extensive due-diligence process that is led by our credit team. The risk assessments analyse the businesses and financial performance as well as qualitative facts such as the strength of the management team, industry appeal etc. These are a fraction of the actual data points that we use to formulate a view on the individual business. The final stage in the due diligence process is a site visit for further assurance. Once a business clears all due diligence, it is listed on the Funding Souq marketplace.
Loans originated by Funding Souq are aimed to support business expansion including working capital and therefore are unsecured against assets. However, to reduce default risk, businesses need to provide the necessary guarantees in line with UAE practices. This includes an undated but signed cheque for the total loan amount and at least one personal guarantee which is drafted under DIFC law.
Click the “Get started” button on the homepage and follow the steps. Upon completing the online registration process including accepting the Terms and Conditions, you will receive an e-mail requesting passport copies and proof of residence (Emirates ID, tenancy contract, utility bill or employment letter) which you will need to send to [email protected]. Your details will be checked, and you will be notified that you have been successfully onboarded within 3 working days. At times, additional documents may be required.
The maximum funds that can be deposited in a calendar year (January-December) is $180,000. To keep track, the remaining amount can be reviewed in the Add/Withdraw funds tab. This is a regulatory requirement and if you would like to be exempted, you must be classified as a Professional Investor.
The minimum funding requirement to set-up an account on Funding Souq is $500.
Retail investors are limited to $5,000 per business. This limit is placed automatically by the platform. The minimum investable amount is $50.
To be classified as a professional investor, you need to have net assets in excess of $1m excluding your primary residence. If you satisfy these criteria, please contact [email protected] and you will be invited to meet a company representative who will determine whether you have the necessary experience and explain the associated risks of becoming a professional investor.
An investor account enters “wind down” status once it is suspended due to mandatory documentation being out of date. The Funding Souq team will contact you for the required document and only in case of no reply or insufficient documents. If your account enters “wind down” status, you will only be allowed to make fund withdrawals. Once the required documentation has been provided, your account will be re-activated.
Repayments will be deposited to your Funding Souq account on the platform from which you will be able to withdraw funds under the “Transfer” tab. Once a “withdraw request” is initiated you will receive the funds within 3 working days in your bank account. As per our Terms and Conditions, investor funds can only be withdrawn after 90 days from the date of deposit. This is to satisfy our anti-money laundering procedures.
Investor funds are kept in a fully segregated client monies account operated by Emirates NBD that complies fully with the DFSA’s Conduct of Business module, Application 5.
Investors can earn average return of 10% or more by lending to established SMEs. The return will depend on the internally generated credit rating and the tenure of the loan.
Businesses undergo a comprehensive due-diligence process that helps Funding Souq determine their riskiness. We analyze each business’s financial performance, credit score, and credit score of its director/s. Depending on the collected data, we formulate a view and assign a credit rating to the business. This credit rating determines the pricing at which the business can borrow on the platform.
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