Magnati And RAKBANK Collaborate To Launch Innovative Merchant Financing Platform For SMEs

Magnati has teamed up with RAKBANK to introduce a new merchant financing platform. This collaboration allows small and medium-sized enterprises (SMEs) to access credit through RAKBANK by using real-time Point of Sale (POS) transaction data. This data is converted into decision metrics, aiding in effective loan underwriting.

The platform provides various financial services, including business loans, invoice financing, equipment financing, POS financing, receivables financing, and insurance. These services help SMEs address their financial requirements more efficiently. Merchants using Magnati's payment solutions experience a simplified loan application process. Repayments are automatically deducted from daily payouts, enhancing cash flow management for merchants.

RAKBANK leverages its SME lending expertise to use the platform’s real-time financial insights for quick and accurate loan underwriting. This ensures faster credit access for SMEs and supports their long-term sustainability. Ramana Kumar, CEO of Magnati, expressed enthusiasm about the partnership with RAKBANK to provide embedded finance solutions for SME merchants.

"We are excited to partner with RAKBANK to provide embedded finance solutions for our SME merchants. Through this partnership, we can offer faster, more streamlined access to financial services through our platform that will enable businesses to succeed," said Kumar. The platform allows banks and financial institutions to underwrite based on proactive intelligence generated from transaction data created by Magnati.

Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, highlighted the bank's dedication to offering innovative financial solutions tailored for SMEs. "Being the leading SME bank in the UAE, RAKBANK is committed to providing innovative and tailored financial solutions that empower businesses to grow and thrive," Kunwar stated.

The partnership aims to give SMEs seamless access to funding and essential financial services. By utilising real-time data, RAKBANK can make quicker and better-informed lending decisions. This approach helps businesses unlock new opportunities and achieve long-term success.

Together, Magnati and RAKBANK are focused on improving the financial ecosystem for SMEs in the UAE. Their collaboration supports the growth of the country's dynamic entrepreneurial sector by providing efficient access to necessary financial resources.

With inputs from WAM