Risk And Credit Assessment

Beehive is the largest peer to peer lending platform in the GCC, connecting established, creditworthy borrowers with both retail & institutional investors. The platform applies the innovative technology of crowdfunding to eliminate the cost and complexity of conventional finance whilst offering borrowers fast access to low cost finance.

SME submit loan application

Beehive performs risk assessment

Physical address is verified

Approved application listed

Beehive places a large emphasis on only listing established & creditworthy SMEs on the platform.

Each funding proposal undergoes an extensive internal credit & risk assessment by Beehive’s proprietary credit decision engine that is supported by robust external verification. To initiate the process, all the relevant financial documentation is collected and then analysed to collate hundreds of data points which are used as part of the final credit report.

Using a proprietary credit scoring database, the data points automatically produce a score that is proportionally weighted to reflect the value of the inputs. This results in a Beehive suggested risk rating being applied to each funding proposal.

Beehive then uses a variety of Application Programming Interfacing (API) integration & customer information to monitor the financials of the borrower over the course of their facility with Beehive. This is to ensure that Beehive keeps up-to-date snapshots of the borrower’s performance throughout the duration of the facility.

Since launching in 2014, Beehive has lent over AED 2.9 Billion to over 1,500 SMEs across the GCC. The default rate and NPLs have remained low and currently stand at 1.98% since inception. As a result of this, investors have been able to achieve a Net Yield of avg. 10-11% per annum.

Year TF Net Yield WF Net Yield
2014-2019
8.00%
10.90%
2020
9.74%
11.35%
2021
9.77%
10.92%
2022
10.54%
10.85%
2023
12.29%
10.74%

Since launching in 2022 in the Sultanate of Oman, Beehive has lent over OMR 6.6 million to over 90 SMEs across Oman. The default rate and NPLs have remained zero and currently stand at 0.68%. As a result, investors have been able to achieve a Net Yield of avg. 8-9% per annum.

Year TF Net Yield
2022
6.46%
2023
5.43%

TF Net Yield

Year Ahli Sharakah P2P Total
2022
6.46%
-
-
6.46%
2023
5.28%
7.54%
8.65%
5.43%
2024 (Till Date)
-
8.83%
8.78%
8.78%

Credit Assessment

The Beehive Credit Team risk assesses each funding proposal based on the borrower’s ability and willingness to repay. Data points are analysed, verified and finally scored with an overall risk weighting. The data points can be summarised into the following three categories:

  1. Repayment Strength
  2. Owner Commitment
  3. The Analysis of External Reports


Repayment Strength
This is where the Beehive Credit Team will analyse the financial performance of the SME over the previous 24-36 months in order to assess the borrower’s ability to repay the requested capital. Financial strength can be analysed in multiple ways, but Beehive focuses on the following areas:

  • Changes in Profitability
  • Changes in Revenue
  • Liquidity Ratio Performance
  • Working Capital Management
  • Changes in Debt Position
  • Changes in Equity
  • Cash Cover in Bank Statements
  • Repayment History with Beehive & Other Financial Institutions
  • Supplier Repayment Analysis

Owner Commitment
Due to the transient nature of Oman, Beehive places a large emphasis on the background of all SME owners (>5% shareholding). This is done to gauge the commitment of the respective owners to both Oman and the company itself. To do this, the Beehive Credit Team evaluates the following:

  • Do shareholders have a family based in Oman?
  • Do shareholders have children in school in Oman?
  • Do shareholders own property in Oman?
  • How much debt do shareholders have in Oman, and how much has been paid off?
  • How much equity have shareholders invested in the business since conception?
  • To what extent are shareholders withdrawing funds from the business?
  • What are the shareholder’s current credit bureau scores?

External Reports
To supplement the internal risk analysis, Beehive uses an established private & public third party specialising in analysing SMEs across Oman. It includes:

  • Mala’a Report – Mala’a enables access to credit through its primary products: Mala’a Credit Report, and Mala’a Credit Score for individuals and corporates.

As part of the Beehive Risk Assessment, a member of the Beehive Credit Team completes a mandatory site visit report. During the visit, business-specific questions are asked, the working site is observed, and the management is interviewed.

icon A+

 

 

 

Top-tier funding request
Supported by a Corporate / Personal Guarantee.
Repayment Strength: Excellent
Owner Commitment: Excellent
Analysis of External Reports: Excellent

Icon Risk A

Top-tier funding request
Supported by a Corporate / Personal Guarantee.
Repayment Strength: Excellent
Owner Commitment: Excellent
Analysis of External Reports: Excellent

Risk B Plus

Repayment Strength: Very Strong
Owner Commitment: Very Strong
Analysis of External Reports: Very Strong
Supported by a Corporate / Personal Guarantee.

Risk B

Repayment Strength: Strong
Owner Commitment: Very Strong
Analysis of External Reports: Strong
Supported by a Corporate / Personal Guarantee.

Risk C

Repayment Strength: Strong
Owner Commitment: Strong
Analysis of External Reports: Moderate
Supported by a Corporate / Personal Guarantee.

Repayment Strength: Moderate
Owner Commitment: Strong
Analysis of External Reports: Moderate

Icon Risk D

Repayment Strength: Moderate
Owner Commitment: Moderate
Analysis of External Reports: Low

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