How To Get Company Loans In Dubai

Dubai has grown in popularity as a destination over the years for expatriates. To keep this trend, The UAE loan industry has developed into a well-established market, offering company loans to foreign and local lenders as well as UAE nationals. If you are looking for company loans in Dubai, then you need to contact a leading loan broker in Dubai. We at Taskmaster help you to deal with this process easily without any trouble.

What Are The Eligibility Criteria To Obtain Company Loans In Dubai?

The most crucial thing one has to consider before contacting a bank to get a loan is the eligibility criteria provided by the relevant bank. The below are the general criteria that all the banks consider:

  • The business must be in operation for at least one year
  • If your association is a branch or subsidiary of an offshore company, it will be considered easy to obtain a loan.
  • An annual turnover of AED 1 million is required to get the loan

Banks in the UAE provide different types of loans for different types of companies. The duration of the loan for business is 1 to 4 years.

What Are The Required Documents To Take Company Loans In Dubai?

Whether it is a small or large company, it is easy to get business loans in Dubai if you have genuine and valid documents. Talking about the documents, the very crucial and mandatory document is the bank statement.

The required documents are given below:

  • Bank statements for the last 12 months
  • Memorandum of Association/ Board of Resolution or Share Certificate
  • Passport and Visa of all the Partners
  • Emirates ID 
  • Office Ejari
  • Owners Home Residence Tenancy Contract or Sharing Accommodation Letter
  • High Volume Transaction invoices
  • VAT certificate
  • Audit Report
  • List of employees obtained from Ministry of labor
  • Landing Bill (if applicable)
  • Trade License

These all the necessary documents that you are required to prepare for loans for business. We at Taskmaster help you in managing all the paperwork on your behalf.

What Are The Benefits Of Acquiring Company Loans In Dubai?

The benefits of company loans in UAE are mentioned below:

Accessible and Convenient

  • As per convenience, the promoters provide various repayment options. To avoid facing difficulties while repaying the loan, they can formulate a repayment plan according to the business cash flow.
  • Monthly installments can be less reduced or increased by the owners according to their profitability or can select bullet payments to repay the amount from time to time.

Flexibility 

  • The owner gets a loan according to different types of fund requirements.
  • Many companies can select term loans to complete the need of the fund in the short to long term.
  • They can select working capital loans to complete the operational expenses of the business.
  • An overdraft facility under which promoters can overdraft the current accounts according to the agreed terms and conditions.
  • Flexibility makes it easier for promotors to obtain loans for the business facility.

No Collateral Required

  • No income or collateral documents are required to be submitted to avail of the loan.
  • For the disbursement of a 100% loan, property or land should be owned by the borrower.
  • For a small business start-up, these loans help to complete their business needs and maintain progress.

Short-term option

  • Business who seeks for their funding needs can choose for a short-term loan.
  • It fulfills their needs to fill the short-term financial gap.
  • Also, flexible loan options are based on the size of the business such as 100% disbursement, 70% payment, this makes it easier for businessmen to expand their business and to maintain the cash flow.

Alternatives To Company Loans in Dubai

  1. Line of Credit : Also called operating loans, overdraft security, or working capital, these loans are flexible with your daily cash flow requirements. The amount you borrow usually depends on your accounts receivable. This is usually not the type of loan you want if you are going to buy inventory. Cash business like retails stores are generally not eligible for this type of funding.
  2. Term Loan : The very traditional types of loans for business, term loans are provided by large national, as well as small community banks. Term loans consist of interest payments and monthly payments with the principal amount decreasing every month. This type of loan is commonly used to buy long-term assets like computers or equipment and the amortization period will often be less than five years.
  3. Leases : In certain cases, this can be prudent to lease the equipment instead of purchasing it. In these cases, these items are owned by a financial institution or third party and are offered to you for s specified period. The fixed price will vary depending on the resale value and the type of asset.
  4. Online Loans : Online lenders sell trade financing products provided by banks, like the line of credit and term loans. How to be, online loans different from bank loans in some critical ways. Generally, online loans come with low stringent needs about your time in business, credit score, and annual revenue. They are also easy to apply for and take less time to get funded. The only caveat is that in return for this convenience and accessibility, online loans typically have higher rates of interest and fees than bank loans.

    If you are searching for company loans in Dubai, then we are here for you. We at Taskmaster provide you the best services to obtaining loans for you.

Also Read:- List of Banks in UAE – Islamic, Private and Commercial Banks

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