Is This the End of Cheques for SME Loans?

10x Industry

Mokshita P.
10x Industry
Published:

Is This the End of Cheques for SME Loans?

The partnership replaces cheques with UAE PASS-enabled direct debits, streamlining payments, improving reconciliation, and helping Beehive support US$1B+ in SME financing across the GCC.

Remember the days of endless paperwork, courier delays, and the constant worry of lost cheques? For many SMEs in the UAE, managing loan repayments and collections used to be a significant headache. But thankfully, those days are becoming a thing of the past, thanks to digital innovation.

We recently heard about a great example of this transformation: Direct Debit System (DDS), a fintech platform that helps businesses automate collections, recently marked a one-year partnership with Beehive, a prominent peer-to-peer lending platform in the MENA region. This collaboration has been a game-changer for Beehive, especially as they've now helped SMEs across the GCC secure over USD 1 billion in financing.

A Shift from Paper to Digital

Before DDS came along, Beehive, like many businesses, relied on the traditional cheque-based system for managing repayments. This meant a lot of manual work, potential delays, and a lack of real-time visibility. But with DDS's fully digital direct debit solution, powered by UAE PASS, things have changed dramatically.

"Reaching the USD 1 billion milestone really shows how committed Beehive is to helping SMEs grow in this country," said Vivek Harikrishnan, Head of Product & COO at DDS. He explained that their direct debit system has essentially done away with the problems of manual cheque handling, like lost cheques or uncertainty about when payments would clear.

Now, Beehive's finance team has a much clearer picture of everything. They can validate IBANs (International Bank Account Numbers), digitally postpone or retry collections if needed, receive automated notifications, and even reconcile payments on the same day. This means they can spend less time on administrative tasks and more time focusing on supporting UAE SMEs to expand their businesses.

Streamlining Operations and Saving Time

The impact of this digital shift goes beyond just collections. Since Beehive started using DDS’s API-driven direct debit technology, they've seen several improvements:

  • Going Paperless: The entire loan process, from getting the loan to paying it back, is now handled electronically. This means no more physical paperwork or waiting for couriers.

  • Reduced Hassles: Managing mandates is now automated with UAE PASS authorisation. This has removed the need to chase down manual signatures, significantly cutting down on back-office work.

  • Faster Reconciliation: Getting reports on transactions and settlement data is now almost instant. What used to take days to reconcile can now be done in a matter of hours.

Jason Stewart, Head of Partnerships and Products at Beehive, summed it up well: "At Beehive, we've always believed that SME finance should be fast, secure, and frictionless." He noted that their partnership with DDS has helped them digitise and streamline a crucial part of that journey: collecting repayments.

This story highlights how technology is simplifying financial processes for SMEs, allowing them to focus on what they do best: growing their businesses.