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How to Get a Business Loan in the Dubai




Dubai can be recognized as a supportive land for businessmen to begin their business here. Most of the entrepreneurs come to this city of gold and try their luck. This is a place that is viewed as durable in terms of finance. Hence, you have to choose for taking a business loan in Dubai for financial support for your business from the UAE banks. Get in touch with our professional at Taskmaster to help you get a business loan.



What is the Eligibility Criteria to Get Business Loan in Dubai


The very crucial things you have to contemplate prior to approaching the banks for obtaining company loans in Dubai are the eligibility criteria offered by the respective bank.


The basic criteria that all banks consider are given below:


  • The business must be in action for at least one year

  • In case your organization is a subsidiary or a branch of any offshore company hence obtaining a business loan would be supposed to be easy.

  • A yearly turnover of AED one million at least is needed to get a business finance Dubai.

In the banks of the UAE offers many categories of loan to different types of business. The period of a business loan is one to four years.



What are the Require Documents to get a Business loan in Dubai


Whether it is a small and a large business, getting company loans in Dubai is easy if you prepared the right documents. Following are the necessary documents for getting a business loan.


  • Bank statements for the last twelve months

  • Memorandum of Association / Share Certificate or Board resolution

  • Passport and Visa of the partners

  • Emirates ID

  • Office EJARI

  • Owners home residence tenancy contracts or sharing accommodation letter

  • High volume transaction invoices

  • VAT certificate

  • Audit report

  • List of employees obtained from Ministry of labor

  • Landing Bills

  • Trade license



What are the Benefits of Getting a Business loan in Dubai


The advantages of Business finance Dubai are mentioned below:


Accessible and Convenient

  • As per convenience, the promotors offer various repayment options. To avoid facing difficulties while repaying the loan,they can formulate a repayment plan as per the business cash flow.


  • Monthly installments can be less reduced or increased by the owners as per their profitability or can select bullet payments to repay the amount from time to time.


Flexibility

  • The owner gets a loan as per the different types of funds needs.

  • Many companies can choose term loans to complete the requirement of the fund in the short to long term.

  • They can choose working capital loans to complete the operational expenses of the business.

  • An overdraft facility under which promoters can overdraft the current accounts as per the agreed terms and conditions.

  • Flexibility makes it easier for promotors to get loans for the business facility.


No Collateral Required

  • No income or collateral documents are required to be submitted to avail of the loan.

  • For the disbursement of a 100% loan, property or land should be owned by the borrower.

  • For a small business start-up, these loans are to complete their business requirements and maintain progress.


Short Term Options

  • Business who seeks for their funding requirements can select for a short-term loan.

  • It completes their requirements to fill the short-term financial gap.

  • Also, flexible loan options are based on the size of the business-like 100% disbursement, 70% payment, this makes it easier for businessmen to expand their business and to maintain the cash flow.


Common Grounds for Rejection of Business Loan in Dubai


· Low Credit Score

The very common reason for loan rejection is a low credit score. Banks check the business owners’ personal credit score in the procedure of evaluating the business loan applications. The personal credit score is a vital aspect to check the application of a loan for a small business or even for a large business.


· Low Business Performance

If any business that is conducting in low revenue and the cash flow statements shows that there is no fund for daily operation then banks consider that the business isn’t in a condition to make repayment of a loan.


Cash flow difficulties are persistent in business but in case the business conducts on these lines of low cash flow then the bank would not approve your loan.


· Too Much Debt

While you applying for a company loan in Dubai, the bank considers your monthly debts responsibilities. If the banks figure out that you can’t afford to pay your monthly debts then simply your business loan would not get approved.


Banks consider the credit uses ratio for approving the application of business loans. Banks advise that you shouldn’t utilize over 30% of the available credit.


In case you used maximum credit on your available limit then you are considered as a high-risk applicant by the banks. A high consumption means a high risk that would get rejected your loan application.



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