Question 1

Who is  Raqamyah?

Accepted Answer

Headquartered in Riyadh, Saudi Arabia and regulated by Saudi Central Bank under the Regulatory Sandbox Framework. Raqamyah is a Saudi Closed Joint Stock Company focused on the Financial Technology (FinTech) space. Raqamyah uses technology to bring financing solutions to Saudi Small and Medium Business Enterprises (SMEs), facilitating connections between financers and SMEs through its Peer-to-Peer Financing platform.

Question 2

What is peer-to-peer financing?

Accepted Answer

Peer-to-Peer Financing is one form of crowdfunding. Crowdfunding is a way of raising finance by requesting number of people each for a small amount of money. In simple terms, peer-to-peer financing refers to financers providing finance to businesses without the use of a conventional intermediary such as a bank.

Question 3

Is the finance facilitated on Raqamyah is Shari’a compliant?

Accepted Answer

Yes.Raqamyah has worked with prominent Islamic legal advisors and Islamic finance industry experts to develop a Murabaha structure that complies with the principl es of Shari’a.

Question 4

Is Raqamyah regulated? Under which law does it operate?

Accepted Answer

Raqamyah is registered as a Closed Joint Stock company in Saudi Arabia with commercial registration number (1010449309).Raqamyah is authorised and regulated by Saudi Central Bank under Regulatory Sandbox Environment.

Question 5

What is Raqamyah Complaint Procedures?

Accepted Answer

In the event that you feel dissatisfied with any aspect of our services, you can contact us through our customer service team’s . contactus@raqamyah.com. he majority of complaints will be dealt through Raqamyah’s team, however, if the issue remains unresolved, the complaint will be escalated to Raqamyah’s Management. The management will review the complaint with a view to understand whether Raqamyah acted fairly and within its contractual obligations. A final written response will then be provided. If you still do not feel your complaint has been resolved fairly, you may then refer the issue to the Saudi Central Bank with their contact below: Saudi Central Bank Consumer Protection Department Al-Ma'ather Street, and P.O. Box 2992, Riyadh 11169, Saudi Arabia. Phone: 800-125-6666 http: //www.sama.gov.sa/en-us/consumerprotection/pages/complaint.aspx

Question 6

What Measures are in place to ensure security around my data and the integrity of your platform?

Accepted Answer

Raqamyah Platform is running on DETASAD Elastic Cloud Services (SAHABA ECS).By hosting the platform on DETASAD Elastic Cloud Services, Raqamyah has leveraged security features such as identity and access management, and network security. Also, DETASAD has more than 35 years of experience in Saudi Arabia hosting some of the largest corporate and governmental data centres in Saudi Ar a bia. DETASAD uses this experience to implement and continuously improve security, operational management, and threat-mitigation practices that are essential to the strong protection of services and data.

Question 7

What contingency arrangement do we have in place in case if Rqamyah ceases to trade?

Accepted Answer

As a SAMA regulated entity, Raqamyah has a contingency plan in case Raqamyah cease operation for any reason. As part of this plan all available financers’ balances in Omnibus bank accounts will be returned to financers’ nominated bank accounts and a statement of outstanding payments and repayment schedule will be sent to financers within 10 business days. In order to ensure orderly business exit with minimal impact to platform participants, the platform will continue its operation for additional three months (extendable by additional three months if needed). During this period the following steps will take place: Pursue selling outstanding financed amounts to a financial institution (bank, finance company, funds, etc.) and refund financers’ outstanding amounts. If selling outstanding financed amounts proves to be difficult then the platform will seek early repayment of the outstanding financed amounts. If the financee (debtor) could not repay or get the outstanding refinanced, the platform would extend its helping hand in finding alternative financer. Otherwise, the Platform will appoint on behalf of financers a collection agency to orderly unwind the financed amounts and repay the financers.More importantly, all outstanding financed amounts will continue to be valid, legally binding and enforceable and installments will continue to be collected as they fall due. All payments will continue to be paid to the appointed collection agent, and we will be able to make regular disbursements until financed amount contracts are paid off.Raqamyah will communicate with all Platform’s participants the situation and action taken to preserve their rights, and to financees (debtors) the new arrangement for repayment of principal and profit.

Question 8

Where is financers'money held and how is it protected?

Accepted Answer

Financers’ funds on Raqamyah are placed in a fully-segregated omnibus bank account at Saudi British Bank (SABB).

Question 9

How can I withdraw my funds?

Accepted Answer

All repayments and profits accrued will be credited to your Raqamyah Account on the platform. You can then choose the “Withdraw Funds” option on the “Dashboard” and follow the steps. You will then receive the funds in your registered bank account in Raqamyah within 3 working days.

Question 10

How do I become a Qualified Individual Financer?

Accepted Answer

To be classified as a Qualified Individual Financer you need to fulfill at least one of the following criteria: Your net assets are not less than 3 million Saudi Riyals; You work or have worked for at least three years in the financial sector; You hold a professional certificate that is related to credit or financial analysis and accredited by a local or internationally recognised entity; or You hold the General Securities Qualification Certificate that is recognised by the Capital Market Authority (CMA), and have an annual income that is not less than 600,000 Saudi Riyals in the two most recent years.

Question 11

Are there limits over the amounts I can finance and the amount of new funds I can add in a 12-month period?

Accepted Answer

As an Individual Financer, your maximum exposure to finance request on Raqamyah is SAR 50,000 and shall not exceed 25% of the finance amount requested. Our platform automatically places this restriction on your requests. The maximum funds you can add in any 12 months period is SAR 200,000.These limits are made in purpose, which is to limit your exposure to any business / platform. If you would like to exceed these limits, you must be classified as a Qualified Individual Financer.

Question 12

How can I register as a Financer?

Accepted Answer

Simply, click on the “Register” option shown on our website and fill in the required information. Once completed, your details will be verified and you will receive a n e-mail or a SMS within 3 working days notifying you that your account on Raqamyah has been activated. In some cases, additional documents may be required.To become a financer, you will be asked a number of questions to ensure that you understand the risks of investing on an alternative asset platform such as Raqamyah. To be eligible to become a financer, you must complete the registration process and pass Raqamyah’s internal Know Your Client (KYC) and Anti-Money Laundering/ Counter-Terrorism Financing (AML/CTF) procedures.

Question 13

What is the minimum amount required to open an account on Raqamyah?And What is the minimum/maximum offer?

Accepted Answer

You can join Raqamyah by setting up an account with as little as SAR 1,000. The minimum bid to finance a single business is SAR 1,000. Your maximum exposure to one finance request as an Individual Financer is SAR 50,000 and shall not exceed 25% of the finance amount requested

Question 14

Is my Financing insured against specific business assets?

Accepted Answer

Financing on Raqamyah is intended to support business expansion plans such as working capital and growth financing, therefore, usually not secured against specific assets. To reduce the risk of default, all businesses must provide the necessary guarantees in line with Saudi law enforcement practices. This includes (i) promissory note; and (ii) personal guarantee.

Question 15

How do you assess businesses Which are listed on the platform?

Accepted Answer

Each business undergoes a rigorous risk assessment that will be undertaken by our experienced credit team and further supported by on-site verification. Only verified and pre-qualified businesses will be listed on Raqamyah Platform. Each finance request is given its own rating based on a multiple number of data points which contribute toward an overall risk band. When using Raqamyah‘s risk model, we look at both quantitative and qualitative measurements, including revenue growth, profitability, strength of management team, sector competitiveness, etc. The metrics which are provided on the platform are a summary of the multiple data points we review during our risk assessment process. Learn More

Question 16

How can I exit a finance request early?

Accepted Answer

Currently, Raqamyah is not offering a secondary market option, so when a financer’s funds get allocated for a certain finance request, they need to wait until the financed amount is fully paid by the financee (debtor). Most of Raqamyah financing do not exceed 24 months tenure, so financers should not expect their funds to be tied-up for more than this period, unless in case of default or early settlement.

Question 17

What are the risks and what happens in the case of default?

Accepted Answer

At Raqamyah, we only allow established creditworthy businesses in our platform, and our experienced credit assessment team undertakes rigorous credit checks on all businesses that apply for listing on the platform. In addition, obtaining all necessary legal documents is part of our risk assessment process. Although we undertake detailed credit checks and we only allow verified and prequalified businesses to apply for finance on our platform, no financed amount can ever be entirely risk free, even creditworthy businesses may default. A fundamental principle of Raqamyah is that we always encourage our financers to diversify their finances across multiple businesses or enterprises to lower their risk of capital loss.  Learn More Since this is an unsecured finance, in case a business defaults, the risk is borne by the financer. Raqamyah will do everything in its power to collect the dues and will commence legal action if necessary. All finance requests are backed by (i) promissory notes; (ii) personal and/or corporate guarantees. If Raqamyah is unable to collect outstanding amounts from the business, then financers will need to wait until such time that money is recovered from the business through legal process (if deemed commercially viable).

Question 18

Why do you require my bank account information,ID,Iqama/Passport and residential proof in the registration process?

Accepted Answer

According to the Saudi Arabian Monetary Authority (SAMA) rules and regulations, all regulated financial services firms need to maintain valid identity documents and information for their customers. As part of this, we have to understand: who you are, your source of funds and your previous dealings. We will be in touch with you from time to time to inform you regarding any required document. We need your bank details so that if you requested to withdraw funds, we know which bank account to transfer the money to.

Question 19

Can I be a financer based outside Saudi Arabia?

Accepted Answer

During Sandbox period, only Saudi citizens, Saudi registered entities, and non-Saudi residents who are holding a valid Iqama can finance through the platform.

Question 20

What is Term Finance?

Accepted Answer

Term Finance are finances characterized by long-term repayment plans – typically extending between 12-24 months and can be used to buy new equipment, open new store, hire more employees, etc. On Term Finance the principal and profit are paid periodically, on a monthly basis, during the life of finance request.

Question 21

What is the duration of the Term Finance?

Accepted Answer

Term Finance duration can range between 12 months and 36 months.

Question 22

How does the financing work?

Accepted Answer

There are two ways to finance on Raqamyah: Automatic Financing: This type of financing uses a tool called Automatic Financing to automatically select the financee (debtor) that financers are willing to finance based on pre-selected criteria. Financers can select their own custom mix based on the following: Maximum amount for each finance request;Sector(s) that you want to finance; Risk grades that you want to finance; Manual Financing: by self-selection of financee (debtor) using the Raqamyah search tool to identify financee (debtor) that financers may be interested in and bidding for funding those financee (debtor's) in online bidding via the Raqamyah Site. This process is called Manual Financing. Financers can browse available finance requests and compare finance requests details such as score, finance request purpose, finance request type, duration, profit rate, and financee (debtor) information.The funding process for every finance request is open for up to 30 business days (extendable by another 30 business days), and the funding period will close once it is fully committed. Orders are made on a first come first serve basis.

Question 23

How does the Automatic Financing Work?

Accepted Answer

Automatic Financing is a tool that automatically creates diversified finance request portfolio and makes automatic finance offers based on the allocation per risk band, amount per financed request. To view and set these parameters click on the “Automatic Financing” tab on your dashboard. By using Automatic Financing, you can ensure that available funds are automatically financed within your predetermined risk parameters. This option may help to: (i) diversify your portfolio; and (ii) place funds as efficiently as possible.

Question 24

On what basis is the profit rate chosen for Term Finance?

Accepted Answer

Profit rates for every finance request are set by Raqamyah Platform based on the score and term of each finance request. Annual Rate of Return (ARR) is calculated on a reducing capital balance basis. You can find out more about our risk and credit assessment Learn More

Question 25

How is term finance repaid? How is profit rate calculated?

Accepted Answer

Accepted offers are repaid via monthly installments and each amount is paid directly into your Raqamyah account. The profit rate is fixed at the time you make your offer.The business then repays the finance request. The monthly installment comprises of capital, profit and platform fees of 2% per annum on reducing balance basis. The profit is calculated on a reducing capital balance basis. For example, if you financed SAR 10,000 over 24 months at a 10% profit rate then your repayment schedule would be as set out below. Over the 24 months term you would receive a profit of SAR 810.To maximize your return on money financed on the platform, you may consider to refinance the monthly installments into a new offer. This is why you may consider that you set your Automatic Financing to assist you to achieve stronger returns.Month	Opening Balance	Monthly Principal Repaid	Monthly Profit	Raqamyah Management Fees	15% VAT on Fees	Monthly Repayment

Question 26

What fees do we charge financers for Term Finance?

Accepted Answer

Raqamyah charges a management fee of 2% per annum only on outstanding finance request balances which are deducted from the monthly repayments. For further details, please refer to the example explained in How is Term Finance repaid? How is profit rate calculated? Also please note that for withdrawing funds from your Raqamyah account, the bank may charge a transfer fee which will be deducted from the amount we transfer to your bank account.

Question 27

What is Invoice Finance?

Accepted Answer

Receivables are defined as amounts owed to a business – essentially outstanding invoices – and are considered to be as current assets. In an invoice financing, a business requests a finance for the amount of its outstanding invoices for cash.

Question 28

Who is the Financee (Debtor), “customer” and Financer?

Accepted Answer

You are the “financer” and you enter a finance contract between “yourself” (and potentially with other financers) and the “financee (debtor)” who has supplied the goods or services to the “customer”.

Question 29

What term usually the invoice finance for?

Accepted Answer

Invoice finance term can range between 60-270 days. At Raqamyah discretion, a financee (debtor) may request to extend the period up to 30 days, so payment may be extended up to additional 30 days. It should be noted that if there is an extension, a new Murabaha Agreement separate from the current contract, will be created on a new commodity to cover the extended period until payment is made.

Question 30

How do we select a financee(Debtor)for the invoice Financing?

Accepted Answer

We undertake a detailed review of the financee (debtor) and only allow them to request finance against large established “customers” that have a strong payment track record with that financee (debtor).

Question 31

How does Raqamyah receive the money from the financee(debtor)?

Accepted Answer

The financee (debtor) can opt to either: Make a direct payment, where the “customer” pays Raqamyah directly; or, Make an indirect payment, where the “customer” pays the financee (debtor), and then the financee (debtor) pays Raqamyah the principal, fees, and charges.

Question 32

What fees do we charge financers for invoice finance?

Accepted Answer

An administrative fee of 0.167% per month is payable, on the invoice financed, at maturity.

Question 33

When do I receive my funding back?

Accepted Answer

You will receive your funds including the profit earned in your Raqamyah account when the “customer” or the financee (debtor) pays us. Profits are calculated to date, so if a financee (debtor) pays early, the forecast profit will be lower.

Question 34

What if a “customer”/financee (debtor)is late in paying?

Accepted Answer

The financee (debtor) can request finance for the expected payment terms rather than the actual ones stated on the invoice. Therefore, payment should match the requested finance. However, a financee (debtor) also has a 30-day Grace Period above and beyond the requested payment term.

Question 35

What if the “customer” does not pay or the financee(Debtor)defaults?

Accepted Answer

The Finance Contract is between you and the financee (debtor) (not the “customer”). Therefore, the financee (debtor) is liable to repay the funds. If a financee (debtor) defaults, then Raqamyah will decide the optimal action to collect the dues.

Question 36

Are the invoices assigned and do you have recourse over the “customer”?

Accepted Answer

No, the invoices are not assigned to Raqamyah or you as a financer. Neither you nor Raqamyah have the right of recourse over the “Customer” as we do not have contractual agreement with them.

Question 37

What security do you hold against the financee(Debtor)?

Accepted Answer

Although this is unsecured financing, we hold a promissory note and personal guarantee from each financee (debtor) for their full agreed credit limit and personal and corporate guarantees.

Question 38

What profit rate can I expect?

Accepted Answer

The profit rate is defined by the risk rating of the financee (debtor), and the period of the funding. The profit rate will be between 0.75% and 1.50% for 30 days.

Question 39

What is Inventory Finance?

Accepted Answer

Inventory Financing is a short-term finance that allows businesses to have the quantity and quality of inventory that they need on hand, and exactly when they need it. Inventory financing is a revolving line of credit or short-term finance made to a business so it can purchase products and goods for sale.

Question 40

Who is the Financee (Debtor), Financer,and “Supplier”?

Accepted Answer

The financer is the one who enters into a Financing Contract (and potentially with other financers). The financee (debtor) is the one who bought goods from a “Supplier or several suppliers”.

Question 41

What term usually the inventory finance for?

Accepted Answer

Inventory finance term can range between 60 and 270 days. At Raqamyah’s discretion, a financee (debtor) may request an extension period up to 30 days and payment may take 30 days longer. It should be noted that if there is an extension, a new Murabaha Agreement separate from the current contract, will be created on a new commodity to cover the extended period until payment is made.

Question 42

How do you select a financee(Debtor)Who is included on the platform?

Accepted Answer

We undertake a thorough review of the financee (debtor) and only allow them to request finance against large established “Suppliers” that have a strong track record with that financee (debtor).

Question 43

How does Raqamyah receive the money from the financee(debtor)?

Accepted Answer

The Financee (Debtor) can opt to either:(i) have direct payment, when he or she sells his or her inventory for cash; or,(ii) when he or she sells his or her inventory on credit, he or she will bring the invoice for discounting subject to vetting of the “Customer”.

Question 44

What fees do we charge financers for Inventory finance?

Accepted Answer

An administrative fee of 0.167% per month is payable, on the inventory financed, at maturity.

Question 45

When do I receive my funding back?

Accepted Answer

You will receive your funds including the profit earned in your Raqamyah account when the proceeds from sales are received. Profits are calculated to the date, so if a financee (debtor) pays early, the forecast profit will be lower.

Question 46

What if a financee (debtor)is late in paying?

Accepted Answer

The Financee (Debtor) can request a finance for the expected payment terms rather than the actual ones stated on the invoice. Therefore, payment should match the expected selling time. However, a financee (debtor) also has a 30-day Grace Period above and beyond the requested payment term.

Question 47

What if the “Supplier” does not deliver the goods or the financee(debtor)defaults?

Accepted Answer

The finance contract is between you and the financee (debtor) (not the “Supplier”), therefore, the financee (debtor) is liable to repay the funds. If a financee (debtor) defaults, then Raqamyah will decide the optimal route for collecting dues.

Question 48

Do you have recourse over the “Supplier”?

Accepted Answer

No, neither you as a financer nor Raqamyah have the right of recourse over the supplier as we do not have privity of contract with the suppliers.

Question 49

What guarantees do you get from Financee (Debtor)?

Accepted Answer

Although this is unsecured financing, we hold a promissory note and personal guarantee from each financee (debtor) for their full agreed credit limit and personal and corporate guarantees.

Question 50

What profit rate can i expect?

Accepted Answer

The profit rate is defined by the risk rating of the financee (debtor), and the tenure of the funding. The profit rate will be between 0.75% and 1.50% for 30 days.

Question 51

What is the period of the POS Finance?

Accepted Answer

POS Finance period can go up to 24 months.

Question 52

How is POS finance repaid? How is profit rate calculated?

Accepted Answer

POS finance is repaid monthly on the basis of merchant’s POS sales during that month.The monthly repayment comprises principal, profit, and Platform fees of 2% per annum on reducing balance basis. For example, if you avail a POS Finance of SAR 10,000 to be repaid over 21 months at a 14% profit rate, then your repayment schedule is as below. Over the 21 months term, you would pay a profit of SAR 1092 (net of fees) i.e. 10.72% for the period of 21 months. Repayment	Monthly Profit	Raqamyah Fees	15% VAT on Fees	Monthly RepaymentThis table is for illustration only and may change depending on merchant POS sales

Question 53

What fees do Raqamyah change financers for POS Finance?

Accepted Answer

Raqamyah charges management fee of 2% per annum only on outstanding finance which are deducted from the monthly repayments. For further details, please refer to the example in ‘How is POS finance repaid?’ ‘How is profit rate calculated?

Question 54

What are the minimum and maximum amounts that you can fund?

Accepted Answer

Currently, we are able to offer financing up to SAR 7.5 million on terms of 12-24 months.

Question 55

How do i make repayments?

Accepted Answer

All repayments on Raqamyah are made through bank transfers on a monthly basis. No cash repayments are allowed.

Question 56

What are your eligibility criteria as a financee(debtor)?

Accepted Answer

You must be an established Saudi-based business meeting at least the following criteria: Audited financials for a minimum of two years,Profitable With sufficient repayment capacity, All business applications go through a detailed credit assessment.

Question 57

Can i pay back early?Are there any penalties for early repayment ?

Accepted Answer

Yes, profit is calculated to the day so paying off your finance early decreases your cost. This will be voluntarily done by the company upon its own discretion.

Question 58

How will be assessed?

Accepted Answer

All businesses applying for finance request on Raqamyah need to provide the necessary financial and business documentation in order that a full risk assessment can be completed.

Question 59

Can i have multiple Business Finance requests on Raqamyah platform?

Accepted Answer

Yes, businesses can have more than one active finance requests at any point in time. Please note that any new application will be subject to a full credit assessment. Furthermore, the business must have made a number of successful repayments on their existing facilities.

Question 60

What is the cost of financing?

Accepted Answer

The cost is defined by the risk score you are given and the period of the funding you are seeking.

Question 61

What fees do we charge?

Accepted Answer

Arrangement fee ranges from 2-5% depending on the rating, period and amount.Monthly Management fee equal to 0.167% of the outstanding amount, invoiced monthly. It covers the costs associated with processing and it is directly added to the financee (debtor) monthly payments.One-off documentation fee of SAR 2,000.

Question 62

Does my business need to be based in Saudi Arabia?

Accepted Answer

Currently, Raqamyah only accepts applications from businesses that are based in Saudi Arabia.

Question 63

Can I get financed against all of my “customer”?

Accepted Answer

We will review your “Customers”, debtor listing and agree which “Customers” will be applicable for invoice financing. The “Customers” must be large businesses and have a strong payment track record with you and others.

Question 64

What is the cost of financing?

Accepted Answer

The cost is defined by the risk rating you are given and the period of the funding you are seeking. The actual cost will be between 0.75% and 1.50% for 30 days payable to the financers.

Frequently Asked Questions