How Will Instant Invoice Financing Boost UAE SME Growth?

10x Industry

Mokshita P.
10x Industry
Published:

How Will Instant Invoice Financing Boost UAE SME Growth?

Innovative credit solutions from Aura, in collaboration with Reem Finance, aim to enhance SME growth by offering immediate invoice payments and addressing substantial credit gaps.

So, there's this fintech company called Aura that's all about improving cash flow for SMEs through innovative credit solutions. They just signed a MOU with Reem Finance, which is a top financial institution in the UAE. The goal here is to leverage Reem Finance’s lending capabilities to expand Aura’s SME financing platform specifically in the UAE market.

You know how SMEs often face a substantial credit gap, right? Aura’s aim is to tackle this issue by offering instant access to funds through invoice discounting. This is crucial because over 50 percent of B2B transactions in the UAE are conducted on trade credit, and the extended payment terms can really hinder SME growth.

Now, what does this partnership mean for SMEs? Firstly, Aura has this invoice financing feature that lets SMEs get immediate payment on their invoices. This helps alleviate cash flow constraints while still allowing their clients up to 120 days to pay. Since Aura launched in May, they've done a bunch of test transactions, which have significantly boosted the operational capacity of businesses by ensuring prompt payment for B2B invoices.

Another key benefit is that Reem Finance will serve as the lender of record. This means Aura can offer faster payouts to SMEs, ensuring they comply with regulatory standards and enhance the efficiency of the financial services provided to small and medium enterprises.

Samer El Mardini, the Co-Founder of Aura, mentioned that this MOU with Reem Finance is a big milestone. He highlighted that partnering with a forward-thinking institution like Reem Finance allows Aura to focus on enhancing their product and user experience. By leveraging Reem Finance's capabilities and license, Aura can scale effectively, delivering efficient and regulated financial solutions to SMEs, helping them overcome cash flow obstacles and realise their growth potential.

On the other side, Seraj Faidi, the CEO of Reem Finance, expressed excitement about the partnership. He emphasised that Reem Finance's platform is designed to support fintech platforms like Aura. Together, they aim to significantly impact the local economy by empowering SMEs with the financial tools they need, leading the change in the financial services space and fostering the growth of SMEs, which are crucial to the economy.