Personal vs Business Financing

Business Funding Dubai | Personal Loans Easier Than New Company Loans

Business funding Dubai: Common ways for SMEs, up to AED. 1 mn, working capital, bank guarantees, LCs

Business funding Dubai: Banks in the United Arab Emirates [UAE] lend to businesses only with a 3-year track record. So new businesses must find innovative ways to sustain themselves.

80% of the population of the UAE consists of foreigners who are in the country on 3-year visas. And can pick up their bags and leave the country overnight. So the banks are a little wary of lending to those who have no track record in the UAE especially those without local partner guarantees.

Please invest 2 minutes of your time to watch the video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:

Business funding Dubai: To start and register a financial business activities click here

Options to get financed in the UAE

1. The most common ways to get financing for small businesses in the UAE are

  • Loans against the owner’s salary transfer
  • Credit card outstandings converted into 12-month installments loans
  • Car loans
  • Mortgages against property
  • Business loans as overdrafts against collateral

Most of these require a track record of at least a few months.

Business Funding Dubai | Personal Is Easier Than New Company Loans

Varal Team Members

Business funding Dubai: To start and register a financial business activities click here

Financial options for larger companies

There are different options to choose from if you’re looking for business funding Dubai. These offers come in the form of:

2. Up to US$ 270,000 [~AED. 1 mn]

Recently, banks have started offering 1 to 3-year loans to small businesses with a good track record.

There are caps on the value of the loan. Criteria that banks look at most certainly includes

  • The audited financial accounts
  • Background and credit ratings of the owners
  • Collateral possibilities and
  • Business plan.

3. Working capital finance

This is in the way of discounting limits for checks. But the parties writing the checks would have to undergo bank appraisal and be approved by them.

You would get advance payment against post-dated checks.

4. Bank guarantees and letter of credit

Bank Guarantees and Letter of Credit are also other possibilities in the UAE.

Usually, the company would need to have a 3-year track record.

In most of the above cases, the bank becomes a strategic partner in your business. They will want a discussion of your business plan, your management team, your background, your finances, and how you want your business to operate or expand your business.

Business Funding Dubai | Personal Is Easier Than New Company Loans

Varal Team Members

Business funding Dubai: To start and register a financial business activities click here

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Personal vs Business Financing was last modified: May 3rd, 2020 by ramapati@varaluae.com

ramapati@varaluae.com

He strives for excellence in all he does and brings out the best in his people through guidance, a strong vision and support. He is exceptionally open-minded, flexible, dependable, understanding and straightforward in all words and actions and encourages personal as well as professional growth.

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