At Beehive, each businesses funding request is designated a risk band to help guide investors and enable them to balance their level of risk and return. The risk band system is based on an A+ to D band range. This provides investors with the most transparent investment guidance and also accommodates an increasingly broad spectrum of businesses applying for finance on Beehive.
Every business on our platform is subjected to the same credit review process and is assessed by our experienced credit team, as well as by independent third parties.
As with any investment, there is always an element of risk. We encourage investors to diversify their investments across a number of different risk band business to minimise the impact of any potential losses. The Beehive risk band system is only intended as a guide for investors.
Top tier funding request. Highest performing businesses with very strong financial record, excellent growth potential and the lowest perceived risk of all bands. Often supported by a Western parental guarantee.
Excellent funding request. Very strong business with excellent financial record and growth potential.
Strong funding request. Business shows strong financial performance and growth potential.
Good funding request. Business demonstrates solid financial performance and growth expectations. Moderate perceived level of risk.
Moderate funding request. Businesses that may not currently meet the exact criteria required of a C band business but do show decent financial performance and growth potential e.g. a profitable, growing business that currently generates a revenue under the AED 2.5m threshold. Assessed on a case by case basis.
‘Challenger’ funding request. These businesses carry the highest perceived risk on the platform. They accordingly carry a higher gross return for investors.