Debt-based crowdfunding, often referred to as peer-to-peer (P2P) lending, is a contemporary financing method where investors—both individuals and institutions—provide capital to businesses or other individuals via an online platform. In the case of Funding Souq, the beneficiaries are borrowers that are established businesses (SMEs).
An SME applies for funding either online or offline and then our experienced credit and compliance teams assess the opportunity.
If approved, a funding request is launched on our Marketplace and investors have the opportunity to make an investment.
When the funding request gets filled, the funds are disbursed to the borrower. On the repayment date, the business is required to repay, and the investors can choose to re-invest or withdraw their funds.