Fintech Firm Hala Receives SAMA Approval for Debt-Based Crowdfunding Solutions

Saudi businesses are poised to benefit from new crowdfunding solutions as Hala Payments Co. has received licensing approval from the Kingdom’s central bank to offer debt-based products.

A Saudi-based fintech platform now offers inbound and outbound payment options to small and medium enterprises, serving over 50,000 merchants, according to its website.

With this new approval, the total number of companies licensed to engage in this activity in the Kingdom has reached 11, and the number of authorized finance companies now stands at 62, stated the Saudi Central Bank in a press release.

Debt-based crowdfunding offers a valuable pathway for projects or businesses in need of funding. Instead of relying on a single lender, borrowers can secure loans from multiple investors.

This model is particularly advantageous for small businesses or individuals who may face challenges obtaining loans from traditional banks. It provides a dual benefit: borrowers receive the necessary funding, while investors earn returns by directly lending their money.

Back to top button