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.
Beehive uses AI in its credit screening process for SME financial data. This rule-based AI system leverages 10 years of accumulated experience in SME financials and thoroughly screens and analyzes the information businesses provide. The AI system collects and assesses hundreds of data points from financial documentation, helping generate more elaborated credit reports. It also flags inconsistencies to ensure a more secure and efficient credit assessment process.
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 OMR 300 Million to over 1,600 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% |
| 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:
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:
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:
External Reports
To supplement the internal risk analysis, Beehive uses an established private & public third party specialising in analysing SMEs across Oman. It includes:
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.
Top-tier funding request
Supported by a Corporate / Personal Guarantee.
Repayment Strength: Excellent
Owner Commitment: Excellent
Analysis of External Reports: Excellent
Top-tier funding request
Supported by a Corporate / Personal Guarantee.
Repayment Strength: Excellent
Owner Commitment: Excellent
Analysis of External Reports: Excellent
Repayment Strength: Very Strong
Owner Commitment: Very Strong
Analysis of External Reports: Very Strong
Supported by a Corporate / Personal Guarantee.
Repayment Strength: Strong
Owner Commitment: Very Strong
Analysis of External Reports: Strong
Supported by a Corporate / Personal Guarantee.
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
Repayment Strength: Moderate
Owner Commitment: Moderate
Analysis of External Reports: Low
