GNcareers, from Gulf News

Obtaining a business loan

Business loanImage Credit: Supplied

Getting your business off the ground, or expanding your venture needs careful consideration especially when it comes to financing. Some investors are fortunate enough to have the required funds on hand; others need to go through the process of selecting the financing solution that best suits their requirements.

There are many banks and financial institutions in the UAE that make establishing a business easier for large corporations and small and medium enterprises, including start-ups. They offer a wide variety of business loans that caters to the specific requirements of their clients at competitive interest rates.

Popular in the UAE are business loans offered to firms that have been operational for two years. To avail of a loan, the lender requires a minimum annual sales turnover (varies from one bank to another) which may be between below Dh2 million and above. The loan can be obtained without collateral and range from less than Dh200,000 to over Dh2 million, with repayment terms that run from two to five years depending on the loan amount.

Loan application document requirements usually include the application form; one-year bank statement; copies of the trade licence, partnership agreement, memorandum of association, power of attorney; and passport copies of all partners and owner. The lender conducts a general assessment of the borrower, taking into consideration firm size, reputation and credibility. Each customer may be assigned a relationship manager to answer all queries and assist in the application process.

Handy Hints
• Business loans offered by banks, private lenders
• Firms are required to be operational for two years
• A relationship manager may assist the borrower

Source: Ellen Joyce Soriano, Special to Classifieds
The writer is a freelancer