Business Loan in the United Arab Emirates

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.