GNcareers, from Gulf News

Ways to finance a business

Business FinancingImage Credit: Supplied

The UAE, being one of the preferred destinations in the world to do business, has witnessed an influx of investors, both local and international, in the past years. Boasting modern infrastructure, they come here either to set up business or expand their existing ventures.

With this, different financing solutions also exist. These give investors plenty of options to avail themselves of the tool that will best suit their requirements, whether it is to finance a startup, open a new branch or tide them through the challenging times.

Loan – The easiest to obtain and the most common means to help one fund an enterprise. Several banks and lending institutions in the country offer flexible loans for those in need of start-up capital. Nearly all banks offer loans designed for small and medium enterprises (SMEs). Entrepreneurs who wish to approach private lenders must ensure that these are registered, reliable and reputable.

Crowdfunding – A buzzword in the business world lately, it is the process of financing a project by garnering funds from several sources, usually online. Reports said it has gained attention in the UAE and the entire region with several platforms being launched. Sites based here currently cater to those into retail and the creative fields.

Government grants – The UAE government supports Emirati entrepreneurs by giving them business grants, most of which target SMEs and home-based businesses.

Other sources of business funds are trade and equity financing, overdrafts, letters of credit and many more.

Handy Hints
• Loan is the easiest way to obtain business funding
• Crowdfunding is popular in business world lately
• UAE government offers business grants to locals

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