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Biz2Credit to broker USD 1 bn in loans for UAE-based SMEs: New York-based fintech Biz2Credit has inked an agreement with First Abu Dhabi’s payment solution Magnati to broker some USD 1 bn in loans to small and medium enterprises (SMEs) in Abu Dhabi, co-founder and CEO Rohit Arora told the Financial Times. The agreement will see Biz2Credit integrate Magnati’s real-time payment data onto its AI-powered lending platforms, with the intention of facilitating loans through overseas funds and local banks, Arora said.
The game plan: Biz2Credit expects to broker USD 1 bn in loans within the next 18 months, after which it aims to facilitate the same amount of loans on an annual basis, Arora added.
The pitch: Emirati banks normally shy away from “asset-light” and risky SMEs, head of financial services at Strategy& Middle East Jorge Camarate said. Magnati’s data on merchants could provide them with more transparency on businesses’ financial health and make them more willing to lend to small businesses, Magnati CEO Ramana Kumar told the FT.
What kind of data are we talking about? Magnati’s platform monitors transactions of businesses that use its service, and compares them with other businesses of similar size to produce data on their finances.
Biz2Credit ❤️ GCC: The firm formed a JV with Saudi credit bureau Simah subsidiary Qarar back in August 2023 to inaugurate the largest SME lending platform in the KSA. Biz2Credit is eyeing further expansion in the Kingdom, with Arora noting that “the UAE and Saudi Arabia are some of the most progressive markets in their mindset.” Biz2Credit initially targeted US-based, immigrant owned SMEs, and has so far facilitated some USD 8 bn in loans for US businesses.
