Aura, a fintech company focused on enhancing SME cash flow via innovative credit solutions, has entered into a Memorandum of Understanding (MoU) with Reem Finance, a prominent UAE-based financial institution. The agreement aims to utilize Reem Finance's lending expertise to broaden Aura's SME financing services specifically in the UAE market.
This collaboration is poised to address the significant credit gap affecting SMEs in the UAE, aligning with Aura's objective to provide immediate access to funds through invoice discounting. Aura's approach is particularly crucial in a market where more than 50 percent of B2B transactions rely on trade credit, frequently with extended payment periods that impede SME growth.
The MoU between Aura and Reem Finance offers several significant advantages. Primarily, through Aura's invoice financing feature, SMEs can receive immediate payment for their invoices, easing cash flow pressures while allowing their clients up to 120 days to settle payments. Since its inception in May, Aura has successfully conducted multiple trial transactions, substantially enhancing business operational capabilities by ensuring timely payments for B2B invoices.
Furthermore, with Reem Finance acting as the lender of record, Aura is equipped to expedite payouts to SMEs. This arrangement not only adheres to regulatory requirements but also improves the efficiency of financial services provided to small and medium enterprises. Samer El Mardini, co-founder of Aura, expressed: "This MOU with Reem Finance is a pivotal step in our mission to transform SME financing in the UAE. Aligning with Reem Finance, a progressive institution, enables us to concentrate on refining our product and user experience. Utilizing their capabilities and license, we can scale effectively. This partnership ensures that we provide efficient and regulated financial solutions to SMEs, aiding them in overcoming cash flow challenges and realizing their growth potential."
In response, Seraj Faidi, CEO of Reem Finance, stated: "We are thrilled to collaborate with Aura to deliver cutting-edge financial solutions to the UAE's SME sector. Our financial services platform is tailored to support fintech entities like Aura, and together, we aim to make a substantial impact on the local economy by equipping SMEs with the necessary financial tools. By spearheading change in the financial services sector, we are dedicated to promoting the growth of SMEs, which play a crucial role in our economy."
