UAE fintech Aura partners with Reem Finance to improve SME cash flow through innovative credit products

The partnership allows Aura to leverage Reem Finance’s financial services infrastructure and license to provide invoice financing to UAE SMEs on a larger scale.

22nd July 2024, Dubai, UAE

Aura, a fintech company dedicated to improving SME cash flow through innovative credit solutions, has signed a Memorandum of Understanding (MOU) with Reem Finance, a leading UAE-based financial institution to leverage the latter’s lending capabilities to expand Aura’s SME financing platform specifically within the UAE market.

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’s solution is particularly vital in a market where over 50% of B2B transactions are conducted on trade credit, often with extended payment terms that hinder SME growth.

The MoU between Aura and Reem Finance brings several key benefits. Firstly, through Aura’s invoice financing feature, SMEs can access immediate payment on their invoices, which alleviates cash flow constraints while permitting their clients up to 120 days for payment. Since its launch in May, Aura has successfully executed numerous test transactions, significantly boosting the operational capacity of businesses by ensuring prompt payment for B2B invoices.

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, “This MOU with Reem Finance marks a significant milestone in our efforts to revolutionize SME financing in the UAE. Partnering with Reem Finance, a forward-thinking institution, allows us to focus on enhancing our product and user experience. Leveraging their capabilities and license, we can scale effectively. This collaboration guarantees that we deliver efficient and regulated financial solutions to SMEs, helping them overcome cash flow obstacles and realize their growth potential.”

For his part, Mr. Seraj Faidi, CEO of Reem Finance, said, “We are excited to partner with Aura to bring advanced financial solutions to the UAE’s SME sector. Our financial services platform is designed to support fintech platforms like Aura, and together, we aim to significantly impact the local economy by empowering SMEs with the financial tools they need. By leading the change in the financial services space, we are committed to fostering the growth of SMEs, which make an outsized contribution to our economy.”