The Banking Executive Magazine - July 2024 Issue

Career Chronicle Aura, a fintech company dedicated to improving SME cash flow through innovative credit solutions, has signed a Memorandum of Under- standing (MOU) with Reem Finance, a leading UAE-based financial insti- tution to leverage the latter’s lending capabilities to expand Aura's SME fi- nancing 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 mar- ket where over 50% of B2B transac- tions 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 financ- ing feature, SMEs can access imme- diate payment on their invoices, which alleviates cash flow con- straints 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 stan- dards but also enhances the effi- ciency 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 mile- stone in our efforts to revolutionize SME financing in the UAE. Partnering with Reem Finance, a forward-think- ing institution, allows us to focus on enhancing our product and user ex- perience. Leveraging their capabili- ties and license, we can scale effectively. This collaboration guar- antees 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 ad- vanced financial solutions to the UAE's SME sector. Our financial services platform is designed to sup- port fintech platforms like Aura, and together, we aim to significantly im- pact the local economy by empow- ering 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 con- tribution to our economy.” ISSUE 187 JULY 2024 the BANKING EXECUTIVE 43 UAE FINTECH AURA PARTNERS WITH REEM FINANCE TO IMPROVE SME CASH FLOW THROUGH INNOVATIVE CREDIT PRODUCTS