The banks in the United Arab Emirates are offering a huge range of banking facilities to business owners in terms of accounts, and trade finance as well as loans, If you are looking to request banking facility like a bank loan, to grow your business. Here the different steps and tips to apply for a bank loan in the United Arab Emirates and get banking facilities:
Tip 1: Check If You Are Eligible To Apply For a Business Loan
SME’s in Dubai are eligible for a business loan, but only if they meet come criteria. The specific requirements are different from bank to bank:
The business must be running for at least 2 years
Audit report is required from approved auditor
Minimum annual turnover (Vary from bank to bank)
Business or personal bank statements for the last 6 to 12 months of the owners
Tip 2: Select the Right Type of Loan
You can consider various types and amounts of business loans. Below we break down the benefits of 4 key types of business loans:
Standard Business Loan
Fixed monthly repayments over an extended period of time
Payment terms are typically fixed unless the loan is under a variable rate
Friends and relatives Loan
Directly approaching friends and family to request a loan
Payment terms are more flexible and can be amended easily
The risk of losing relationships over repayment
Credit Card Loan
In the form of advance funds through a credit card
Typically charges very high-interest rates
Tip 3: Documents preparation and submission
Preparing the necessary documents properly requested by the bank to get a business loan in advance can ease to process of loan request.
Here are the common documents required by bank in Dubai to apply for a bank loan:
Business bank statements from the past 6-12 months
Personal bank statement of the company owners
Credit Ratings and Reports from
Bank application signed by the authorized signatory:
Legal company documents: Original documents
Copy of loan applicant’s passport, visa and Emirates ID copies
Audit report from approved auditors list (last 2 years)
The bank may ask for additional documents like:
Applicant proof of residence: inside and outside of the UAE ( Ejari and Utility bill)
Proof of business transactions (Invoices, bill of lading … etc.)
VAT Certificate if the company is registered with Federal tax Authority
Audit Report from approved auditors
List of employees obtained from Ministry of Labor
If you want a faster business loan request in Dubai Free Zones, reach out to FreeZoneMarket.ae consultants. Our team of professionals will assist you for all your business needs.
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