Dubai, UAE – 23 July 2024 – In a strategic move to enhance the financial health of small and medium enterprises (SMEs), UAE fintech company Aura has partnered with Reem Finance. This collaboration aims to address the significant credit gap that SMEs face in the UAE, providing them with immediate payment solutions through innovative invoice financing.
Key Partnership Details
- Memorandum of Understanding (MOU): Aura and Reem Finance have signed an MOU to leverage Reem Finance’s lending capabilities, expanding Aura’s SME financing platform in the UAE market.
- Invoice Financing Feature: The partnership focuses on improving SME cash flow by offering instant access to funds through invoice discounting.
- Extended Payment Terms: Client companies can take advantage of up to 120 days for payment, easing financial constraints for SMEs.
- Faster Payouts: Reem Finance, as the lender of record, positions Aura to provide faster payouts, enhancing financial service efficiency and ensuring regulatory compliance..
Impact on SMEs
Aura’s platform addresses a critical need in the UAE market, where over 50% of B2B transactions rely on trade credit with extended payment terms. The immediate payment solution alleviates cash flow constraints, allowing SMEs to focus on growth and expansion.
Leadership Insights
- Samer El Mardini, Co-Founder of Aura: “Our partnership with Reem Finance marks a significant milestone in revolutionizing SME financing in the UAE. Leveraging their capabilities and license, we can scale effectively.”
- Seraj Faidi, CEO of Reem Finance: “Our 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.”
Conclusion
Aura and Reem Finance’s partnership will transform SME financing in the UAE, providing critical financial support and fostering economic growth. By addressing the credit gap and offering innovative solutions, both companies aim to create a more robust and dynamic SME sector.
