CredibleX has so far disbursed AED 100 million in loans to small businesses across the UAE since the pilot launch of its platform eight months ago. With over 35 distribution partners, such as Network International, DMCC, National General Insurance, Agthia, Watermelon, and Mamo, CredibleX has unlocked financing opportunities for more than 100,000 SMEs, enabling them to apply for credit through its platform.

CredibleX’s platform, which integrates directly into the operations of businesses, offers fast, transparent, and accessible financing options tailored to the Emirati SME sector’s unique operational needs. By working with embedded partners, the company aims to reach out to a wide range of small businesses, offering them seamless access to capital without the complexities typically associated with traditional lending. Today’s episode of the “Start-up of the Week” will feature International Finance discussing the venture in detail.

The Art Called ‘Revenue-Based Financing’

SMEs these days find it hard to raise venture capital. However, non-dilutive, revenue-based financing (RBF) has emerged as an alternative. This has become a very popular trend in the UAE and in the wider MENA (Middle East and North Africa) region, resulting in plenty of start-ups rising to meet the challenge of providing working capital financing to SMEs. CredibleX, one of the prominent start-ups, operates under a model where it partners with large aggregators and targets SMEs within their vertical ecosystem.

Revenue-based financing has been fruitful for SMEs in high-income countries like the UAE, as it is harder to obtain financing from so-called Development Finance Institutions, which are primarily set up to invest in projects in less economically developed countries.

CredibleX, which started its operations in March 2024, claims to have issued over AED 100 million (USD 27 million) to SMEs under its revenue-based financing model. The start-up’s goal is simple: all SMEs should be able to easily access and choose from financial options that will help them grow their businesses. Entrepreneurs should not have to stress about things like bank visits, long loan application times, and piles of paperwork.

Financial institutions, on the other hand, by associating themselves with the start-up, will open up new revenue streams in the form of “Embedded Working Capital Finance,” while helping their SME customers unlock one of their biggest challenges: financing. CredibleX’s fully digital application takes minutes, and funds are disbursed in hours, providing SMEs with working capital in the blink of an eye.

Meet Embedded Solutions

CredibleX, licensed and regulated in the Abu Dhabi Global Market, is known for its flagship product called the “Embedded SME Insurance Finance,” which essentially provides SME insurance premiums, offering BNPL (Buy Now Pay Later) options for Group Medical, Fleet, and Trade Credit Insurances.

This product has been particularly designed with small businesses’ cash flow challenges in mind, especially when faced with large upfront costs like insurance premiums. Typically, SMEs end up paying their annual insurance premiums in one lump sum, which can strain their finances and limit their ability to invest in growth.

CredibleX’s “Embedded SME Insurance Finance,” on the other hand, allows SMEs to pay their insurance premiums in a more manageable, staggered way. This approach not only eases the financial burden on SMEs but also ensures that they can maintain essential insurance coverage without compromising their cash flow.

“Our collaboration with top-tier insurance companies is built on a foundation of mutual benefit. By partnering with CredibleX, insurance providers can secure their annual premiums in one go, reducing the risk of non-payment and improving their cash flow predictability. This arrangement offers insurance companies a reliable revenue stream while allowing them to extend their reach within the SME sector,” the start-up stated.

SMEs gain access to essential insurance coverage without the stress of large upfront payments. They can budget for their premiums as they would for other operational expenses, paying in instalments that align with their cash flow cycles. This financial flexibility empowers SMEs to better manage their resources, invest in growth opportunities, and ultimately thrive in a competitive market.

Next is “Embedded B2B Channel Finance,” which the start-up explained as follows: “In the rapidly evolving B2B landscape, platforms, aggregators, and large corporates are at the heart of a thriving ecosystem of SMEs. Whether these SMEs are suppliers delivering goods to you or buyers purchasing from your platform, their success is closely tied to their ability to access timely and flexible finance. By partnering with us, you can offer embedded financing solutions that empower your SME ecosystem, driving growth and ensuring smooth operations across the board.”

For B2B platforms, aggregators, or large corporates, their suppliers occupy critical roles in their supply chain. By integrating CredibleX’s embedded finance solutions, these large conglomerates can provide their SME suppliers with the working capital they need to fulfil orders without delay.

With the start-up’s embedded finance solutions, SME buyers can access the liquidity they need to purchase essential goods from a big corporation’s platform or wholesale operations. This not only helps them optimise their supply chain but also strengthens their relationship with the parent business, leading to increased sales and long-term growth.

Options Galore

CredibleX’s “Embedded Point of Sale (POS) Financing” has emerged as a leading POS provider in the MENA region. By integrating this solution, POS providers can offer their SME clients seamless access to working capital, enabling them to manage cash flow, invest in inventory, and expand their businesses—all through their existing platform. This partnership not only enhances the value of the start-up’s clients’ POS offerings but also strengthens their relationships with merchants.

CredibleX’s POS financing offers benefits such as effortlessly embedding into POS systems, ensuring a smooth and user-friendly experience for the merchants. The start-up also provides customised financing solutions that cater to the unique needs of different SMEs within the POS provider’s ecosystem.

Let’s conclude the article by discussing CredibleX’s “Invoice Finance,” which empowers SMEs to have early access to cash flow. As SMEs rely on receivables from top-tier clients, these payments serve as the lifeblood that keeps their operations running smoothly. Partnering with large corporate clients can significantly enhance SMEs’ businesses by securing receivables and negotiating better terms with suppliers.

However, working with these large clients often brings challenges such as tight delivery schedules, stringent quality demands, and extended payment timelines. This is where CredibleX comes in with its Invoice Finance or Receivables Finance solutions, as they are designed to provide businesses with the liquidity they need to meet these challenges head-on.

CredibleX offers a receivables financing solution that allows SMEs to get paid early on invoices issued to large customers. Instead of waiting for the typical 30, 60, or 90-day payment terms, businesses can access the funds tied up in their receivables almost immediately. This early access to cash flow enables them to cover operational costs, invest in growth opportunities, and manage their businesses more efficiently.

The post Start-up of the Week: Through revenue-based financing, CredibleX is boosting MENA’s SME sector appeared first on International Finance.

The conference will be held in New York Marriott Marquis, USA

Invest is a wealth management conference that will be held on 10th and 11th July, 2018 in New York Marriott Marquis, USA.

The two-day conference will exhibit companies, people and technologies that are building the digital future of wealth management.

Senior executives from wealth management background, traditional banks, broker dealers, private banks, regional and independents, online investment platforms, technology and service providers will be part of the conference.

Some of the speakers to share their insights at the conference are:

• David Canter

EVP at Fidelity Investments, Boston, USA

• Tanay Jaipuria

Business Analyst at McKinsey & Company, USA

• Penny Crosman

Editor at SourceMedia, USA

• Christopher Ivey

CEO at Rizm, USA

• Lee Conrad

Wealth management content strategist, Thought leadership expert, Editor-in-Chief at Bank Investment Consultant magazine, USA

• Sebastian Dovey

Owner, Scorpio Partnership – global family and wealth management strategy advisor at Scorpio Partnership, London, Canada

The post Invest to share wealth management insights in the two-day conference appeared first on International Finance.

March 30, 2017: Qumram, a leading global RegTech firm headquartered in Zurich, Switzerland that provides digital compliance and risk management solutions, has announced further investment of 1.5 million Swiss Francs from the technology-focused venture capital firm Mundi Ventures. Headquartered in Madrid, Mundi Ventures has operational presence in Barcelona, London and Seattle.

In addition to providing due diligence support, Mundi Ventures will boost Qumram’s growth strategy by facilitating access to corporate executives, new markets and new customers. Through this investment partnership, Qumram will gain access to the Mundi Club, a global network of more than 500 renowned Spanish business leaders, located in 41 cities worldwide, including board members of Havas, Kering, Merck, Bertelsmann and Nestle, as well as the CEO of Zoetis, and the former CEO of Toys R Us.

Qumram allows all digital activity and interactions (web, social, mobile) to be recorded and replayed in movie-like form, providing a transparent digital audit trail for financial services organisations. It enables global banks, investment and wealth management firms, insurance companies, and other financial institutions, to comply with regulatory requirements for digital record-keeping: MIFID-II, FINRA, SEC, ESMA, FFSA, FIDLEG, the Department of Labor fiduciary rule, and more. It also facilitates fraud detection (monitoring digital behavior of employees as well as interactions from external sources), and delivers actionable customer insights that improve customer experience.

A spokesperson for Mundi Ventures said, “Qumram satisfies the compliance, legal and customer experience analytics needs of large corporations. We talked with existing customers, who confirmed a compelling need for the solution, and who spoke very highly of the Qumram experience. We were impressed by the strength and quality of the Qumram team, the uniqueness of the solution, and the market traction already achieved by the company within the last two years. We very much look forward to contributing to the commercial scalability of Qumram, helping to open doors that will create a solid global business.”

Patrick Barnert, CEO at Qumram, said, “We are delighted to have the backing of Mundi Ventures, as we continue to strengthen our trajectory into new global markets. The wealth of experience and network that this investment partnership brings extends far beyond its financial contribution. With the closing of Mundi Venture funding, and further investment from existing investors in December 2016, Qumram raised a total of 4.1 million Swiss Francs in angel funding last year. These funds are continuously applied to international expansion, with strong focus on the financial services markets of Europe, the UK and USA. Qumram has already gained great traction in the US. Our first client win was Russell Investments, and other financial institutions followed soon after.”

The post Mundi Ventures invests 1.5 million CHF in Qumram appeared first on International Finance.

October 6, 2016: Allianz Group and International Finance Corporation (IFC), a member of the World Bank Group, have signed a partnership under the Managed Co-Lending Portfolio Program (MCPP). Under the agreement, Allianz intends to make an investment of $500 million which will be co-invested alongside IFC debt financing for infrastructure projects in emerging markets worldwide.

The infrastructure debt team of Allianz Global Investors has structured the transaction and will manage the fund on behalf of investors. IFC will originate, structure and administer the loans on behalf of the fund in addition to providing a first loss protection.

Allianz Global Investors has established an infrastructure debt fund that will co-invest with IFC in a portfolio of loans which IFC has granted to infrastructure projects in emerging economies and fulfill a defined set of eligibility criteria. The IFC will provide a first loss protection in order to reflect the risk/reward profile of an institutional investor. This will offer Allianz insurance entities access to Emerging Markets infrastructure loans, which have historically been funded by international development institutions, local banks and some international banks.

Allianz Global Investors has 25 offices in 18 countries. It provides global investment and research capabilities with consultative local delivery. It has more than £469 billion in AUM for individuals, families and institutions worldwide and employs more than 500 investment professionals. Its infrastructure debt team, led by Claus Fintzen, focuses on senior and stable debt investments in the essential infrastructure sector. The team currently has £8bn under management.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. In FY16, long-term investments in developing countries rose to nearly $19 billion.

Oliver Bäte, CEO of Allianz SE, says, “We work to ensure that our activities are profitable and sustainable. We create long-term value by embedding sustainability in our core business. The partnership with IFC and our co-investment in infrastructure is a perfect example how Allianz can provide thought leading investment expertise to support the economic development of emerging countries as well as serving the interest of our customers.”

“Modern infrastructure is essential for economic growth and lasting prosperity,” said IFC CEO Philippe Le Houérou. “Yet, a huge investment gap exists in this sector—totaling trillions of dollars a year in emerging markets alone. MCPP infrastructure marks a breakthrough in the search for large-scale financing solutions to the challenges of development. It is a key building block in the global effort to move from billions to trillions in development finance.”

Andreas Gruber, Allianz Group Chief Investment Officer, says, “This partnership underlines how we at Allianz can create value for our customers by combining entrepreneurial investment ideas with industry-leading implementation know-how. Together with IFC we were able to conceive a reliable investment vehicle appropriate to the very long-term perspectives of all parties involved.”

The post Allianz, IFC to invest in infrastructure projects appeared first on International Finance.