Halliday Growth officials pose for a photo.
Halliday Growth, an award-winning cash management company in the United Arab Emirates, innovates by supporting post-revenue startups and micro, small and medium enterprises (MSMEs). Halliday Growth does this by providing its enhanced invoice financing solution to quickly solve its cash flow problems.
With this solution, startups and SMEs that have difficulty obtaining bank loans can now access cash by selling their sales invoices to Halliday Growth, which then provides them with working capital within 24-48 hours of the first deployment. By unlocking cash from unpaid invoices, these businesses can now ease cash flow constraints and fund accelerated growth.
Access to bank loans is difficult. For example, in the first quarter of 2020, when COVID-19 affected many businesses, SMEs in the United Arab Emirates accounted for only 4.3% of all credit facilities offered by banks, but account for 94% of the total. entire business community according to Arab Affairs. Therefore, while large companies get the loans they need to remain economically viable, startups and MSMEs remain handicapped and exposed to takeover by larger companies.
Halliday Growth was founded to support these businesses that are constrained by prolonged credit cycles in the UAE. “It is very difficult for companies to have to wait months for payment, even after completing a job. They have to cover the costs of doing this work and months of overhead just to be competitive. said Malachi Halliday, CEO and co-founder. “We help start-ups and SMEs in the UAE succeed by easing their cash flow constraints so they can have the cash to operate and grow.”
Crucially, it also frees them from the need to dilute their equity by raising funds, which can be a valuable and welcome respite from the constant search for cash flow. However, ownership dilution can prove difficult for some small business owners, who may not be ready to sell stock at early stages of development. In contrast, invoice financing provides funds to businesses without the need to lose ownership or control.
Similarly, the invoice financing offered by Halliday Growth saves companies from borrowing and indebtedness on their balance sheets. In the world of business and finance, increasing debt on the balance sheet can be seen as a negative signal that casts doubt on the future sustainability of the company and reduces the value of the company’s balance sheet. It can become more intense when a company eventually goes public. Businesses can avoid this negative perception with on-bill financing, which does not result in debt being recorded on the balance sheet.
According to Ministry of Economy, 94% of all businesses in the UAE are SMEs and these SMEs employ 86% of the private sector workforce. Thus, the success of these SMEs is of great interest to employees, business owners and policy makers. By providing SMEs with quickly and easily accessible liquidity to finance their operations and plan their growth, Halliday Growth contributes significantly to this success.
“Going forward, Halliday Growth aims to provide $100 million in invoice discounts over the next 12 months, introduce artificial intelligence and machine learning to make the process easier, faster and more fluid. We will integrate blockchain technology to increase the efficiency and security of our data processing and storage, solidify our ability to service customers in the Greater GCC region, and reduce the time required to onboard new customers,” said David Linklater, CFO and co-founder.
Thanks to Halliday Growth, the startup and SME landscape in the UAE already has access to this crucial treasury service. Halliday Growth notably supports little-known or impactful verticals and has recently signed partnerships with several market leaders, particularly in the following specialized niches:
- SEE Institute, located in the sustainable city and sustainable enterprises through their research programs and the Bedayat incubator for sustainable enterprises.
- Grow.ME International, a business coaching and consulting firm known for its support programs for women-owned businesses like the one offered earlier this year in conjunction with NYU/startAD (a program funded by the US Embassy United).
- DANA Global, a business builder focused on supporting women-owned businesses in desert tech, with a focus on agribusiness. DANA Global also recently signed with Masdar to build a beta site, developing solutions advancing food safety in the UAE.
Halliday Growth is ready to build on this progress and expand its cash flow management solutions to more companies through partnerships and collaborations like these, as well as broader industries, like the shows their recent partnership with International Free Zone Authority (IFZA), Dubai, the body responsible for business registration in the IFZA.
Halliday Growth is a UAE-based non-bank trade finance provider that offers innovative solutions to unlock working capital. With decades of successful entrepreneurial experience and structuring investments, they help unlock value in startups and SMEs.
They do this by buying the sales invoices from these companies and providing them with money within 24-48 hours. With this service, they provide businesses with the cash needed to fund their operations and growth, as well as the time to grow their business instead of chasing after creditors.
As a market leader in the field of cash flow management and invoice financing, its efforts have been recognized in the market, with the latest award at TechKogo’s fintech conference for Halliday Growth’s efforts in favor of financial inclusion.