Micro and small businesses in the UAE can now access loans starting from Dh10,000 to support cash flow, pay employee salaries or expand their operations, following the launch of a new digital lending service by the Botim app on Tuesday.

The new Botim Business SME Lending service offers financing from Dh10,000 to Dh500,000, with repayment terms of up to 12 months. The loans can be used for working capital, employee salaries, equipment purchases and business expansion.

The service was launched in partnership with financial technology and payments company Geidea. It will initially be available to eligible businesses within the company’s UAE network. The initial rollout, supported by Geidea and other Botim partners, is expected to reach more than 30,000 merchants.

Which businesses are eligible for the loans?

The financing is designed for micro and small businesses, including limited liability companies and sole proprietorships.

Applicants’ eligibility will be assessed using artificial intelligence-powered tools that analyse businesses’ financial transactions, cash flow and credit history.

The data is collected during registration or through participating business partners. Botim said this would enable faster application reviews and allow loan amounts to be tailored to each business’s financial position and cash-flow cycle.

Small businesses account for 94% of UAE enterprises

According to published data, small and medium-sized enterprises account for about 94% of all businesses in the UAE and contribute more than 60% of the country’s non-oil gross domestic product.

However, many of these businesses still struggle to access working capital because of strict lending requirements and lengthy application review processes.

Tariq Bin Hendi, chief executive of Botim, said microbusinesses account for about 70% of the UAE’s small and medium-sized enterprises, and that many of their owners are gaining access to formal financing for the first time.

He said the initiative aims to simplify access to financing and help business owners focus on growth and expansion.

Bin Hendi also highlighted the UAE’s target of increasing the number of small and medium-sized enterprises to one million by 2030, saying Botim intends to use technology to support the achievement of this goal.

Pankaj Kundra, chief executive of Geidea in the UAE, said the partnership would integrate payment and financing services, making it easier for businesses to access the funding they need to invest, expand and pursue new opportunities.