Riyadh - Sharikat Mubasher: erad, a Riyadh-based alternative financing platform for SMEs, successfully secured a SAR 470 million credit facility from Jefferies, with co-investment from Channel Capital, to accelerate embedded finance solutions across the GCC.

Following this transaction, erad will expand into multiple sectors and products, including embedded finance products, enabling suppliers and business platforms to offer integrated financing at the point of sale, the company announced in a press release today.

This transaction marks Jefferies' first GCC asset-backed financing transaction and will support the firm's plans to grow its presence in Saudi Arabia. Additionally, it will enable erad to significantly expand its capacity to meet growing demand from SMEs in the Kingdom and the broader region.

Salem Abu-Hammour, Co-founder of erad, affirmed that the partnership with Jefferies marks a transformative moment for SME financing in the region. “By embedding financing directly into existing supplier and platform relationships, we are making working capital as accessible as a payment transaction. The support from the regulators, Jefferies and Channel Capital, demonstrates the strategic importance of alternative finance in supporting the Kingdom's goal of SME growth."

In turn, Mark Collier, Managing Director at Jefferies, commented: “The combination of erad's proprietary technology platform with our global experience in asset-backed financing solutions will enable erad to address the real-time working capital needs of SMEs across the region."

Founded in 2022, erad helps SMEs access Shariah-compliant working capital solutions, using a data-driven approach and leveraging technology to offer swift, flexible financing to businesses in Saudi Arabia and the UAE across different sectors such as retail, healthcare, F&B, and more.