3 Peer-to-Peer lending platforms empowering SMEs in Saudi Arabia

By Delisha Fernandes

Peer-to-peer lending (P2P lending), as a significant component of the FinTech sector, is quickly becoming the most popular alternative investment option. In this regard, of all the recent FinTech disruptors, P2P lending is by far the most creative. P2P lending is the process of lending money to individuals or businesses through online services that match lenders and borrowers.

Saudi Arabia’s peer-to-peer lending market is flourishing due to expanding technological innovation, enhanced transparency above traditional banking systems, low operational costs, and the growing modernisation of digital technology. According to Statista, as of Q4 2021, the lending rate of Saudi National Bank was 1.33 percent in Saudi Arabia. In comparison, the Saudi Arabia British Bank (SABB) had a lending rate of 0.9 percent for that same period.

Here are 3 platforms facilitating Peer-to-Peer loans for SMEs in Saudi Arabia:

• Raqamyah

Raqamyah Platform is a Saudi-based Peer-to-Peer (P2P) SME lending platform. The Platform uses innovative technology to connect small businesses seeking fast, affordable finance with lenders who could help fund their growth. By lending directly to businesses through Raqamyah, lenders earn attractive returns while businesses get fast, easy access to funding at competitive rates to grow, create jobs, and drive the economy forward.

• Forus

Forus is a crowdfunding platform (P2P lending platform) in Saudi Arabia that bridges the gap between finance and SMEs, helping small businesses access the capital they need to grow and thrive. The platform’s innovative technology and expertise enable borrowers to showcase their business potential and attract investment from individuals and institutions looking to support promising ventures. Through its user-friendly platform, borrowers can create compelling profiles, access diverse funding options, and benefit from personalised support throughout the funding process.

• Lendo

Lendo is a shariah-compliant, peer-to-peer (P2P) digital lending marketplace that helps pre-finance outstanding invoices for businesses in Saudi Arabia. The platform offers a variety of financing products for SMEs with an initial focus towards pre-invoicing finance. Lendo’s products and solutions make everyday business activities easier, more secure, and more efficient for investors and borrowers alike.