Is it easy to get a business loan in Dubai? Find out now

Hey there! Thanks for dropping by. Welcome to this interesting blog. Here, I share a lot of things about a lot of things. If you’re here for the first time, please bear with me. I can’t help but put out this introductory note in my article.

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You’re going to get what you came here for. In this article, I’m going to share some useful tips on how to get a business loan in Dubai. So, stay around to find out more.

Are you planning to apply for a business loan? Before you head to the Bank, make sure that you have all your data and documents in order.

Access to capital is a constant need for growing businesses. If you want to hire several employees, opened a new location, increase the production or development of new products, a business loan can provide your small business the money it needs to expand.

Success in getting the loan will depend on success in convincing the lender that you can pay off your loan on time. That decision will be based on a number of factors including the income of the company and registration of credit, your business plan, the nature of the company, its industry, the business experience of the owners, the personal credit of the owner, warranty and the lender you choose.

To evaluate these factors, lenders in Dubai will ask you to complete a loan application and provide a variety of information and documentation. Although details may vary from one lender to another, you may need to provide some or all of the following:

Details of the loan application:

  • Why do you need a loan?
  • How much you need?
  • How will you use the money?
  • Amount of time needed to pay off the loan.
  • What other business debts you have?

Here are the other details that you need to provide generally to apply for a business loan in Dubai.

  • Business plan
    This includes a description of the company, description of products and services, projections and how you plan to reach your goals, take up the principles in business and financial projections
  • Legal documents
    Licensing business, incorporation documents, patents, commercial leases, franchise agreements or other legal documents related to your business.
  • Financial statements

Profit and loss statement (also called a statement of income) for an existing business, Balance sheet, Cash flow statement, and Reports of accounts by cash and accounts by paying accounts (for business)

  • Tax returns

Business and personal tax of three years may be necessary.

  • Credit reports
    The lender may require credit reporting for both business (if already established) and personal credit reports to the owner.
  • Warranty
    Collateral is something of value that can be used to pay off the loan if the company is late in payments. Something of value would be something the lender would be able to sell to recoup their losses if the company is unable to pay the loan. “Something” could be the inventory, equipment, bank accounts or even your House.

Gathering all the previous information and documents before approaching a lender will help speed up the loan application process. It should also help you get a clearer view of your needs of business and the ability of companies to repay the loan.

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