Two UAE firms – fintech Aura financial institution Reem Finance – are joining hands to give a big push to SME cash flow.
The two signed a Memorandum of Understanding (MOU) to leverage Reem Finance’s lending capabilities to expand Aura’s SME financing platform in the UAE market.
Aura’s platform focuses on improving SME cash flow through innovative credit solutions.
The partnership is set to tackle the substantial credit gap facing SMEs in the UAE, in line with Aura’s goal of offering instant access to funds through invoice discounting.
Aura said its solution is particularly vital in a market where over 50 percent of B2B transactions are conducted on trade credit, often with extended payment terms that hinder SME growth.
The agreement envisages providing SMEs with immediate payment on their invoices through Aura’s invoice financing feature.
This provision will alleviate cash flow constraints for SMEs, while permitting client companies up to 120 days for payment.
Reem Finance enables faster SME payouts
Additionally, with Reem Finance serving as the lender of record, Aura is positioned to offer faster payouts to SMEs.
This setup not only ensures compliance with regulatory standards but also enhances the efficiency of financial services provided to small and medium enterprises.
Samer El Mardini, Co-Founder of Aura, said the pact with Reem Finance marks a significant milestone in the company’s efforts to revolutionise SME financing in the UAE.
“Leveraging their capabilities and license, we can scale effectively,” he said.
Seraj Faidi, CEO of Reem Finance, said the company’s financial services platform is designed to support fintech platforms like Aura.
“Together, we aim to significantly impact the local economy by empowering SMEs with the financial tools they need,” he said.
