Risk Assessment at Hala Financing
Hala Financing effectively employs its team’s finance expertise with innovative ideas and advanced technology to bring forth SME financing solutions and investment opportunities for its customers. Both parties get fast access to their desired solutions without making them suffer the tedious processes of conventional financing options.
300,000 
Riyadh
How it works?
How exactly does Hala Financing analyse the risk associated with each financing opportunity, you may wonder as an investor.
Only Approved SMEs Land on the Hala Financing Platform
Only businesses that pass our strict evaluation appear on the Hala Financing platform as investment opportunities. We consider various factors, including but not limited to: revenue thresholds, entity ownership, and the credit history of both the entity and its owners, to assess the borrower's ability and willingness to repay.
More Than 100 Data Points Collected on Each SME
We leverage over 100 distinct data points to thoroughly evaluate each finance application, ensuring that our decisions are well-informed and precise. Among these critical data points are: Total Revenue, Frequency of Transactions, Revenue Growth Rate, and the Duration of Business Operations.
Evaluation Criteria
including but not limited to:
Number of Transactions
Based on point-of-sale
Age of Owner
On application date
Entity Credit History
All historical records collected from simah
Total Revenues
Collected from point-of-sale provider
Based on Risk Bands
| Risk Class | Low Risk (A) | Moderate risk (B) | Elevated Risk (C) | High Risk (D) |
|---|---|---|---|---|
| Entity's Credit History | Excellent | Excellent | Excellent | Excellent |
| Revenue | Very High | Very High | Medium - High | Low - Medium |
| Revenue Growth | Very High | High | Low - Medium | Low |
| Number of Transactions | High | High | Low - Medium | Low |
Hala Financing in Numbers
Our Loan Portfolio
As of 31 March 2026
| Risk Class | Total Financed | Total Collected | Total Outstanding | Total Defaulted | Default % |
|---|---|---|---|---|---|
| A | 38,208,907 | 5,045,417 | 33,163,491 | 1,010,930 | 3.05% |
| B | 33,105,093 | 12,097,007 | 21,008,086 | 1,658,367 | 7.89% |
| C | 35,665,047 | 17,327,541 | 18,337,506 | 1,634,773 | 8.91% |
| D | 7,856,953 | 3,946,833 | 3,910,120 | 400,222 | 10.24% |
| E | 100,150 | -25,926 | 126,076 | 0 | 0% |
| Total | 114,936,150 | 38,390,873 | 76,545,278 | 4,704,292 | 6.15% |
*All figures in Saudi Riyal
**Default % is the Total Defaulted / Total Outstanding
***This data is not considered a sufficient indicator to anticipate the future performance of Hala Financing or that of Institutional Beneficiaries
Risk Warning
The competent finance team at Hala Financing evaluates the credentials of each business before finalizing a user agreement. As a buyer-centric entity, Hala Financing adheres to a set of compliance practices and mechanisms to ensure that only authentic listings are featured on the platform for funding purposes. Nonetheless, it is imperative for investors to understand that they are lending to SMEs which maybe at the early-stages of establishing their presence in the industry. Therefore, the level of risk associated with such investments is higher which could also result in a potential loss and delays in repayment. It is necessary to understand that you could lose your money.
