Deem Finance has formed a strategic partnership with Biz2X to provide data-driven Embedded Finance solutions for small and medium enterprises (SMEs) in the UAE.
The UAE-based lender, part of the Gargash Group, will leverage Biz2X's AI-powered lending platform to introduce point-of-sale-based financing for eligible merchants. The solution uses real-time sales and transaction data for credit assessment rather than traditional balance-sheet analysis.
The partnership addresses working capital access barriers for UAE SMEs, particularly businesses with seasonal revenue patterns or transaction-driven cash flows not captured by conventional banking models. Financing decisions reflect operational performance and daily cash-flow realities through point-of-sale data integration.
Transaction data enables dynamic underwriting
The platform provides digital onboarding with credit assessments and approvals typically completed within 48 hours. Repayment structures link to sales performance, enabling businesses to manage working capital during variable trading periods while maintaining flexibility for growth phases.
According to company data, Biz2X's platform currently facilitates more than USD 37 billion in SME lending globally, providing analytics, underwriting infrastructure, and digital capabilities for financial institutions across multiple markets.
Alternative data sources in SME credit
Point-of-sale financing uses merchant transaction volumes, sales patterns, and payment processing data for creditworthiness assessment. This approach differs from traditional lending models relying on financial statements, credit scores, and collateral requirements.
SME financing in the UAE faces structural challenges, including limited credit history documentation, informal business operations, and gaps between conventional credit criteria and actual business viability. Alternative data sources enable lenders to assess businesses previously excluded from formal credit markets.
Deem Finance operates under the UAE regulatory frameworks governing consumer and commercial lending. The company provides personal loans, business financing, and point-of-sale credit products.
Biz2X, headquartered in the US, provides lending platform infrastructure for banks, fintech companies, and alternative lenders. The platform integrates with accounting software, payment processors, and banking systems to automate credit decisioning and loan origination.
The partnership supports UAE economic diversification objectives, emphasising SME development and financial inclusion. Small and medium enterprises represent a significant portion of private sector employment and GDP contribution in the UAE economy.
