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For UAE SMEs, strong sales do not always mean cash is available when the business needs it. Purchasing stock, paying suppliers, managing seasonal demand or investing in growth can require additional working capital before incoming revenue reaches the business.
POS financing can provide lenders with another way to assess a business by considering its sales and transaction activity alongside other financial information. For merchants that generate a significant share of their revenue through card payments, POS turnover can provide useful insight into trading performance and cash-flow patterns.
At Deem Finance, our Merchant Loan considers both banking turnover and POS turnover when assessing the financing amount, helping eligible businesses access funding based on how they trade.
Deem also offers the Quick Merchant Loan, a short-term, collateral-free revolving facility designed to support working-capital requirements, with eligibility based on the business’s average account balance.
Building further on data-driven SME financing, Deem’s partnership with Biz2X is focused on introducing POS-based financing solutions that use real-time sales and transaction data to support financing decisions that better reflect business performance and day-to-day cash-flow realities.
Deem Merchant Loan and Quick Merchant Loan for UAE SMEs
The financing you choose should fit both your business requirement and the period over which you expect to repay it. Deem’s Merchant Loan and Quick Merchant Loan offer different structures for businesses looking for access to working capital.
Deem Merchant Loan
Deem Merchant Loan supports business financing requirements with repayment periods of 12 to 48 months, depending on eligibility and the selected tenure. Repayments are made in equal monthly instalments, giving businesses a defined repayment schedule that can be considered as part of their cash-flow planning.
The financing amount is assessed using a combination of the business’s banking turnover and POS machine turnover.
Deem Quick Merchant Loan
Deem Quick Merchant Loan is a 13-month revolving facility designed to support working-capital requirements.
The facility is drawn in full for a four-month tenor and repaid over four equal monthly instalments. Following full repayment of a drawdown, another drawdown may be requested. The facility may be drawn up to three times during its tenure, subject to the applicable terms.
Quick Merchant Loan eligibility is cash-flow based, with the available limit determined based on the business’s average account balance.
Before choosing a facility, review the relevant document on Deem’s Key Facts Statement page. Consider the repayment period, applicable interest, fees and total amount payable against your expected business cash flow.
What Is POS-Based Financing?
Point-of-sale, or POS, financing uses a merchant’s card transaction and sales information as part of the financing assessment. This data can provide insight into factors such as transaction values, sales volumes and trading patterns.
For businesses that generate regular card sales, POS turnover can help provide a clearer picture of how the business trades alongside bank statements and other financial information.
Cash-flow-based financing looks more broadly at how money moves through a business and its ability to meet financial commitments. While POS turnover can form part of this picture, different financing products may use different information and eligibility criteria.
For a broader introduction to this type of business financing, read Deem’s guide to Understanding Merchant Loans: A Powerful Tool for Business Growth.
How Deem Uses Business Turnover and Cash-Flow Information
The information considered when applying for SME financing depends on the Deem product you are applying for.
Merchant Loan: Banking and POS Turnover
For Deem Merchant Loan, both banking turnover and POS machine turnover are considered when assessing the financing amount.
Businesses that accept card payments should therefore keep their POS and banking records organised so their trading activity can be assessed accurately.
Quick Merchant Loan: Cash-Flow-Based Eligibility
For Deem Quick Merchant Loan, the available limit is based on the business’s average account balance.
This makes it important to maintain clear banking records that demonstrate the cash-flow position of the business.
In both cases, approval remains subject to Deem’s assessment and the applicable eligibility requirements.
Preparing for SME Financing
Start with your business requirement
Identify what you want to finance and how that expense supports the business.
A stock purchase ahead of a busy season may have a different repayment horizon from an equipment investment or another longer-term business expense. Understanding the purpose of the financing can help you assess which facility is more appropriate.
Prepare your financial and trading records
Keep your relevant bank statements, POS reports and other required business records organised.
If your business uses several POS terminals, payment providers or sales channels, confirm with Deem which records are required for the product you are applying for.
Review your offer and repayment schedule
If approved, review the financing amount, applicable interest, fees and instalment dates before accepting.
Deem Merchant Loan and Quick Merchant Loan use monthly repayments collected through Direct Debit Authority.
For the current Deem Merchant Loan, POS turnover forms part of the financing assessment, while repayments are made through agreed equal monthly instalments. Other POS-based financing structures may operate differently, so always refer to the terms of the specific facility you are considering.
How Transaction and Cash-Flow Data Can Help You Plan
When preparing for a business financing discussion, look beyond your headline sales figure.
Your financial and transaction records can help you consider practical questions such as:
For example, a café may record AED 120,000 in monthly card sales but receive AED 116,000 after refunds and processing deductions. If operating outgoings and existing repayments total AED 96,000, this leaves AED 20,000 before any new financing repayment, taxes and other commitments.
This illustrative example can help a business prepare a repayment budget before approaching Deem. It is not an eligibility calculation or an indication of the amount that could be approved. The information required and financing decision will depend on Deem’s assessment and the applicable product criteria.
POS Financing vs Traditional Business Loans
POS-based financing uses sales and transaction information as an important part of understanding how a business performs.
Traditional business lending may place greater emphasis on bank statements, financial statements, credit history and the wider financial profile of the business, although the information considered will vary depending on the lender and product.
For businesses considering Deem Merchant Loan, POS turnover can support the assessment alongside banking turnover, while the approved facility is repaid through equal monthly instalments.
The important point is to consider both sides of the financing decision: how eligibility is assessed and how the approved facility must be repaid.
Review the full terms of the facility offered and consider whether the repayment schedule remains manageable during both stronger and quieter trading periods.
Which Businesses Can Benefit From POS Financing?
Businesses with an established history of card transactions may find POS-based financing particularly relevant.
This can include businesses such as:
For businesses looking to purchase stock, support a working-capital requirement or invest in equipment, transaction and cash-flow records can help provide a clearer picture of business activity.
Eligibility for any Deem financing facility remains subject to the applicable product requirements, business profile and Deem’s assessment.
If your business receives payments through online gateways, multiple POS terminals or different sales channels, check with Deem which records are required for your application.
What Businesses Should Consider Before Applying
Budget for your Deem repayments
Include the proposed instalment alongside rent, payroll, supplier payments and existing financial commitments.
Use realistic revenue expectations and allow for seasonal changes. Business financing should support a defined requirement with a repayment plan the business can manage.
Understand the full cost
Review the applicable interest, processing or drawdown fees and early settlement conditions.
For Quick Merchant Loan, consider the applicable costs associated with each drawdown. Refer to your offer, Deem’s Key Facts Statement and applicable Terms and Conditions before accepting a facility.
Keep your direct debit account ready
Note each payment date and maintain sufficient funds in the account used for your Deem Direct Debit Authority.
Check that repayments have been processed and keep your financial records up to date.
Contact Deem early if you need support
If you expect difficulty meeting a repayment, contact Deem before the due date to discuss your circumstances.
For assistance with your Deem facility, contact Deem Customer Care on 600 525550.
Find SME Financing That Fits Your Business
The right business financing starts with understanding what you need to fund and the cash flow available to support the repayments.
Deem Merchant Loan considers banking and POS turnover and provides a structured repayment period for eligible businesses.
Deem Quick Merchant Loan provides a short-term revolving working-capital facility, with eligibility based on average account balance.
Explore Deem Merchant Loan and Deem Quick Merchant Loan, then speak to the Deem team about your business requirements, eligibility and applicable terms.
Frequently Asked Questions
What is POS financing in the UAE?
POS financing is a form of business financing where point-of-sale transaction and sales information is considered as part of the financing assessment. It can help lenders understand a merchant’s sales activity and trading patterns alongside other required financial information.
How does POS-based business financing work?
The lender reviews relevant sales, transaction and financial information as part of its assessment. The financing structure, amount, costs and repayment terms will depend on the specific product and lender.
For Deem Merchant Loan, banking turnover and POS machine turnover are considered when assessing the financing amount.
Can SMEs get financing based on sales data?
Sales and transaction information can form part of an SME financing assessment.
Deem Merchant Loan considers both banking turnover and POS turnover when determining the financing amount. Approval remains subject to Deem’s assessment and applicable eligibility requirements.
Does Deem offer working-capital financing for SMEs?
Yes. Deem offers Merchant Loan and Quick Merchant Loan solutions for eligible businesses.
Merchant Loan offers structured financing over a longer repayment period, while Quick Merchant Loan is a short-term revolving facility designed for working-capital requirements.
What is the difference between Deem Merchant Loan and Quick Merchant Loan?
Deem Merchant Loan considers banking turnover and POS turnover when assessing the financing amount and is repaid over an agreed period of 12 to 48 months.
Quick Merchant Loan is a 13-month revolving facility with cash-flow-based eligibility. Each drawdown has a four-month tenor and may be redrawn following satisfactory repayment, subject to the applicable terms.
Is POS financing the same as a business loan?
Not necessarily. POS-based financing describes an approach where transaction or sales data is used as part of the assessment.
The financing agreement determines whether the facility operates as a loan or another type of financing arrangement and how it must be repaid.
What businesses can use POS financing?
Businesses with verifiable card or POS sales may be suitable for POS-based assessment, subject to the lender’s applicable eligibility requirements.
Retailers, cafés, restaurants and other businesses receiving regular card payments are common examples.
Will my Deem Merchant Loan repayments automatically reduce if my sales fall?
No. Deem Merchant Loan is repaid through agreed equal monthly instalments. POS turnover forms part of the assessment of the financing amount but does not make the monthly instalment automatically change with day-to-day sales.
If you anticipate difficulty meeting a repayment, contact Deem before the due date to discuss your circumstances.
Deem financing is subject to eligibility, assessment, approval and applicable terms.
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