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Navigating Business Loans in the UAE: A Comprehensive Guide

Securing a business loan in the ever-changing terrain of the United Arab Emirates (UAE) is instrumental for entrepreneurs and company owners. Whether you are initiating a new startup or looking to grow your current enterprise, comprehending the subtleties surrounding business loans in Dubai, UAE is imperative for achieving prosperity. This all-inclusive manual will explore the fundamental elements associated with business loans within the UAE, elucidating the entire procedure while highlighting why opting for our professional services as a business consultant firm aligns perfectly with your financial requirements.

Business Loan in Dubai,UAE

A business loan in the UAE serves as a financial lifeline for companies seeking capital infusion for various purposes. From funding operational costs to expansion plans, business loans offer the financial flexibility necessary for growth. The UAE, especially Dubai, presents a favourable business environment, making it an attractive destination for local and international entrepreneurs.

HSBC First Loan
AED 2,000,000
Minimum Revenue
AED 126,620
Monthly Payment
10 %
Flat Rate
4
Maximum Term

Noor Bank understand your financial requirements may be big or small.  Business Finance will help you grow and is available across key emirates including selected free-zones.

Noor Business Finance Features:

  • Maximum amount: up to AED 4,500,000
  • Manage your day to day cash with Islamic Covered Facility of up to 15% of your Business Finance limit
  • Current account with zero balance
  • Flexible payments: up to 48 months
  • Pricing as low as 18% pa
  • Minimal documentation (see below)
  • Life Takaful coverage for authorised signatory or Managing partner

Documents Required

  • Application Form
  • 1 year bank statements + 2 years Audited Financials as applicable
  • Valid Constitution/ Incorporation/Rgistration Documents
  • Board Resolution / POA (as applicable)
  • Identification card (for U.A.E. Nationals) and passport + visa (for expats) of the authorized signatories
  • Tenancy contract & Utility Bills
  • Original invoices & list of staff
  • Visiting cards & location maps
  • Minimum length of business: 2 years
  • Minimum turnover of AED 2 million
Dubai Islamic Bank - Business Finance
AED 1,000,000
Minimum Revenue
AED 12,531
Monthly Payment
9 %
Flat Rate
4
Maximum Term

Dubai Islamic Bank's Al Islami Business Finance extends up to AED 1.5 million for businesses who think big. With a hassle-free approval process and business-friendly payment options, Al Islami Business Finance is the better way for all your business needs.

DIB Business Finance Features:

  • Finance up to AED 2.5 million
  • Competitive Profit Rates - 17%-24%
  • Financing based on Salam Finance
  • Flexible tenure from 6 months to 48 months
  • Minimum Annual Turnover - AED 1 Million
  • Minimum Annual Turnover 1000000
  • Minimum Loan Amount: AED 50,000

Unique features: 

  • The company should have a minimum annual sales turnover of AED 1,000,000 to be eligible for this finance
  • You do not need an account with the bank to apply for a business finance
  • The flat rate starts at 17% and can go up to 24% per annum, depending on company profile
  • The company should be at least 1 year old in order to qualify for finance

Fees & Charges: 

  • The early settlement fee is up to 1% of outstanding balance
Emirates Islamic - Business Finance
AED 150,000
Minimum Revenue
AED 12,206
Monthly Payment
8 %
Flat Rate
4
Maximum Term

Use our financing solutions to manage your cash flow, asset acquisition and expansion requirements for your business.

Features & Benefits:

  • Murabaha and Ijarah products
  • Designed to provide solutions for: Working capital and fixed assets financing of up to AED 3 million on an unsecured/partially secured basis or up to AED 5 million on a fully secured basis
  • Trade finance products including Sight/Time LC's, Cash LC's, LC murabaha financing and all types of letters of guarantee.Vehicle fleet, buses and heavy truck financing initial public offering (IPO) financing (on selective basis)

Fees & Charges:

  • Processing Fee: 1.50%
  • Settlement Fee: 5.00 %
  • Minimum Annual Turnover: AED 1,500,000
Gulf Finance Small Business Loans
AED 2,500,000
Minimum Revenue
AED 12,930
Monthly Payment
11 %
Flat Rate
4
Maximum Term

Gulf Finance Small Business Loans Features:

  • Unsecured cash loan of up to AED 250,000 for new customers
  • Or AED 500,000 for top-ups/ loan buy-outs
  • Minimum annual revenue - AED 2.5 Million as evidenced in bank statements
  • Maximum term - 48 months

Interest Rates:

  • 20%-24% for new loans
  • 18%-20% for loan buy outs
  • 18%-22% for top-ups

Maximum Loan Amount:

  • AED 250,000 for new customers
  • AED 500,000 for top-ups/ Loan buyouts

Minimum Age of Business:

  • 3 years for trading companies, as measured from the date of owner joining the business
  • 2 years for other companies, as measured from the date of owner joining the business

Early Settlement Fees:

  • 2%, if settled from own funds
  • 5%, if settled from other financial institutions

Documents Required:

  • 12 month bank statements for general trading companies, 6 months bank statements for other companies
  • KYC/KYB Documents
  • Verbal financials
  • Copies of invoices (sales and purchase)
Emirates Money Business Loan
AED 1,200,000 Minimum Revenue
Minimum Revenue
AED 12,662
Monthly Payment
10 %
Flat Rate
4
Maximum Term

Features:

  • Flexible repayment terms up to 48 months
  • Competitive interest rates
  •  Low premiums on Credit and Term Insurance
  • Dedicated Relationship Managers to service your business needs
  • No collateral required
  • Top-up facility within 6 months

Documents Required:

  • Passport copy with valid Visa page
  • Last 6  /12 months (>250 K) of bank statements
  • Copy of Trade License & Memorandum of Association
  • Power of Attorney
  • Audited Financials
Emirates Money Loan for Rent a Car Companies
AED 360,000
Minimum Revenue
AED 11,389
Monthly Payment
4 %
Flat Rate
4
Maximum Term

Features:

  • Loans of up to AED 7 Million
  • Financing up to 90%
  • Variety of brand and types of all passenger cars & mini buses
  • Minimum length of 1 business year

Documents Required:

  • Last 6 months (>250,000) of bank statements and Audited Financials (=> 1 MN)
  • Passport copy with valid Visa page of Business Owner / Director / Partner
  • List of vehicle fleet currently being used by the company
  • Copy of Trade License & Memorandum of Association
  • Power of Attorney
Aseel Business Finance
AED 900,000
Minimum Revenue
AED 13,064
Monthly Payment
12 %
Flat Rate
4
Maximum Term

Aseel Business Finance provides financial solutions to SMEs. Whether it’s the day to day requirement of working capital or the SMEs wish to purchase any asset/service, Aseel's Business Finance solutions will help them solve their financing issues with additional benefits of free key-person protection, and faster turnaround time.

Introductory Offer:

Collateral-free financing

Aseel Business Finance Features:

  • Minimum monthly turnover AED 75,000 to apply
  • Free Key-person Takaful Protection
  • Maximum term is up to 60 months
  • Minimum age of business should be 2 years

Documents Required:

  • Constitutional documents where applicable: Trade License Chamber of Commerce Certificate Commercial Register Certificate Memorandum/Articles of Association Service Agency Agreement Notarized Power of Attorney
  • Key person's & Partner (s) Identity Documents (Passport, Emirates ID, Partner's passport, Partner's Emirates ID, Key person's Visa page (if not UAE National))
  • Latest 6 months bank statement
Emirates Money Personal Loan
AED 600,000
Minimum Revenue
AED 12,681
Monthly Payment
10 %
Flat Rate
4
Maximum Term

Features:

  • Loans for self-employed individuals
  • Cash loans up to AED 400,000
  • Flexible repayment terms of up to 48 months
  • Top up facility

Documents Required:

  • Passport copy with visa page
  • Copy of trade license
  • Last 3 months of original bank statements
  • Memorandum of Association (MOA)
  • Power of Attorney (POA)
Emirates Money Commercial Vehicles Loan
AED 360,000
Minimum Revenue
AED 11,389
Monthly Payment
4 %
Flat Rate
4
Maximum Term

Features:
• Funding up to 90% • Flexible finance scheme for both new & used vehicles • Attractive interest rates • Extend loans to first time buyers as well as fleet operators • Insurance funding
Documents Required:
• Last 6 months (>250,000) of bank statements and Audited Financials (=> 1 MN) • Passport copy with valid Visa page of Business Owner / Director / Partner • List of vehicle fleet currently being used by the company • Copy of Trade License & Memorandum of Association • Power of Attorney

Emirates Money Equipment Loan
AED 360,000
Minimum Revenue
AED 11,389
Monthly Payment
4 %
Flat Rate
4
Maximum Term

Features:
• Loans of up to AED 7 Million • Funding up to 85% • Available for rental company • Loans available to all segments of customers ranging from first time users to strategic customers • Insurance funding

Documents Required:
• Last 6 months (>250,000) of bank statements and Audited Financials (=> 1 MN) • Passport copy with valid Visa page of Business Owner / Director / Partner • List of vehicle fleet currently being used by the company • Copy of Trade License & Memorandum of Association • Power of Attorney

Emirates Money Loan Against POS
AED 300,000
Minimum Revenue
AED 12,141
Monthly Payment
8 %
Flat Rate
4
Maximum Term

Features:
• Higher eligibility for businesses • Flexible tenor up to 48 months • Lower Interest Rates • Top-up facility within 6 months • POS terminals issued by any bank can be hypothecated

Documents Required:
• Passport copy with valid Visa page • Last 6 months bank statements • Copy of Trade License & Memorandum of Association • Power of Attorney • Audited Financials

Eligibility Criteria

To get a business loan for a new company, you must fulfil the following criteria:

  • Income: You must have your business running for at least 12 months.

  • Turnover: You must have an annual turnover of 1 million AED or more to qualify for the business loan.

  • Age Limit: Your age must not be less than 21 years old.

  • Bank Account: To open a business account in the UAE, you must have a business account with one of the UAE banks.

  • Operation: You can easily apply for a business loan if your business is an offshore operational organisation's subsidiary or branch.

Business Loan Interest Rates in the UAE

When you're thinking about getting a business loan in Dubai, UAE, considering the interest rates are important. They can differ depending on several factors, including the lender, loan amount, creditworthiness of the applicant, and loan duration. Conducting thorough research and comparing interest rates offered by various financial institutions is crucial to obtain the most favourable terms for your business loan.

Startup Business Loan in the UAE

To transform groundbreaking ideas into reality, aspiring entrepreneurs often seek startup business loans in the UAE for financial support. Specifically designed to cater to startups' unique needs, these loans offer flexible repayment arrangements and manageable interest rates. Startups in Dubai's thriving business ecosystem have excellent access to these funds, which allows them to jumpstart their ventures effectively.

Business Loan for Starting a New Company in the UAE: A Roadmap to Success

Starting a new business in the UAE is a journey that requires meticulous planning and financial resources. A loan for creating a new business can cover various expenses, including licensing, equipment procurement, and initial marketing efforts. As you embark on this exciting endeavour, securing the right financing can set the stage for a successful launch.

Documents Required for Business Loan in the Dubai, UAE

The application process for a business loan in Dubai,UAE involves providing specific documents to the lending institution. 

While the exact requirements may vary among lenders, standard documents include the following:

  • A business plan.

  • Financial statements.

  • Proof of ownership.

  • Valid identification.

  • Details of the proposed use of funds.

Dhanguard guides you through the documentation process, ensuring a smooth and efficient application.

Small Business Loan in the UAE: Empowering Local Enterprises

Small enterprises form the foundation of every economy, which also applies to the UAE. The essence of small business loans lies in their ability to support and encourage local businesses. Their purpose is to cater to the unique requirements of these smaller ventures, aiding them in dealing with daily functioning, capitalizing on growth prospects, and overcoming obstacles.

Types of Business Loans

UAE Banks offer various business loans to fulfil different needs and requirements of businesses.

 Here are some common types of business loans in Dubai, UAE are:

  • Term Loans: Traditional loans with fixed repayment terms and interest rates. They are used for various purposes, including equipment purchase, business expansion, or financing a new project. 

  • Working Capital Loans: Such loans cover daily operating costs, including payroll, inventory and utilities. These loans help businesses manage cash flow and keep operations running smoothly. 

  • Business Expansion Loans: These loans are intended to fund business growth and expansion initiatives, such as opening new locations, entering new markets, or launching new products or services.

  • Trade Finance Loans: Trade finance loans finance international trade transactions. They can include letters of credit, export and import financing, and other solutions to facilitate cross-border business.

  • Equipment Financing Loans: These loans purchase business equipment, machinery, vehicles, or other assets. The equipment itself often serves as collateral for the loan.

  • Project Financing: Project financing loans fund specific projects, such as infrastructure development, real estate construction, or large-scale initiatives. The project's revenue potential often serves as the primary source of repayment.

  • Startup Loans: Some banks offer loans tailored to startups and new businesses. These loans can provide initial funding for launching the industry, covering expenses like marketing, equipment, and operational costs.

  • Trade Credit Insurance: This type of financing helps protect businesses against the high risk of customer non-payment. It can assure lenders and suppliers, making it easier to access credit.

  • Working Capital Demand Loans: These loans provide businesses with a line of credit that they can draw upon as needed to cover working capital requirements. Interest is usually charged only on the amount withdrawn.

  • Microfinance Loans: Microfinance loans are targeted at small businesses and entrepreneurs who need smaller funding to support their business activities.

  • Islamic Business Financing: Islamic banks in the UAE offer Sharia-compliant financing solutions, such as Murabaha (cost-plus-profit), Mudarabah (profit-sharing), and Ijarah (leasing), for various business needs.

  • Invoice Financing: Also known as factoring, this type of financing involves selling your accounts receivable to a lend a discounted rate in exchange for immediate cash.

  • Overdraft Facilities: Similar to working capital demand loans, overdraft facilities provide a credit limit that businesses can use to cover short-term cash flow gaps. Interest is charged only on the amount used.

  • Merchant Cash Advance: This option allows businesses that receive an essential portion of their revenue through credit card sales to receive an advance based on projected future credit card sales.

It's important to note that the availability of these types of business loans may vary depending on the bank and its specific offerings. Before applying for a loan, it's recommended to research multiple lenders, compare terms and interest rates, and choose the loan type that aligns best with your business's needs and financial situation.

Choose the Best Bank for Your Business

Here is a comprehensive list of some best banks in the UAE:

  • Emirates NBD: Offers flexible repayment terms, competitive interest rates on business loans, and personalized financial solutions tailored to specific industry needs.

  • First Abu Dhabi Bank (FAB): Provides a comprehensive range of business loan products, including working capital loans and equipment financing, backed by expert advisory services to guide businesses through their financial decisions.

  • Dubai Islamic Bank: Specializes in Sharia-compliant business financing options, offering Mudarabah and Wakala structures(A wakala is a financial arrangement in which the venture's profits are distributed to the venture's capital provider, minus a set fee paid to the agent. Even bank deposits can be structured as wakalsas. In the Islamic world, murabaha is one of the most common forms of financing. It involves selling an asset, like a machine, through an intermediary.), ensuring businesses can access funding while adhering to Islamic principles.

  • Abu Dhabi Commercial Bank (ADCB): Features a wide array of business lending solutions, such as overdraft facilities and trade finance, designed to support enterprises of all sizes in their growth and expansion plans.

  • Mashreq Bank: Offers innovative lending solutions focusing on digital convenience, enabling businesses to access funds quickly and efficiently while providing value-added services like cash management and trade finance.

  • RAKBANK:  provides a diverse range of business loan products tailored to different industry needs, fostering growth and development for local businesses in the UAE.

  • HSBC: offers global expertise and a wide array of business financing solutions, making it a preferred choice for multinational companies seeking cross-border financial support.

  • Commercial Bank of Dubai :  specializes in supporting SMEs with accessible business loan options and personalized advisory services, contributing to the flourishing entrepreneurial landscape in Dubai.

Why Choose Dhanguard: Your Trusted Business Partner

Amid the array of options available for business loans in Dubai, UAE, choosing the right partner is crucial. Dhanguard stands out for several reasons:

Expertise

With years of experience in the UAE market, we have an in-depth understanding of local regulations, market trends, and financial dynamics. Our expertise ensures that you receive tailored advice and solutions.

Tailor-made Approach:

Our acknowledgement of the distinctiveness of each business drives us to dedicate time and effort towards understanding your specific requirements, ambitions, and financial objectives. Consequently, we can offer personalized solutions harmonizing with your unique business aims.

Extensive Network

Throughout our years in operation, we have diligently established a robust network comprising financial institutions, investors, and industry experts. This well-connected network enables us to facilitate introductions between you and suitable lenders or partners who can significantly increase your chances of securing a beneficial business loan.

Comprehensive Support

 From the first consultation until the ultimate approval stage, we provide complete assistance throughout the loan application process. Our knowledgeable consultants not only aid in handling documentation but also devise repayment strategies while offering valuable guidance to improve your loan approval prospects.

Transparency

Our commitment to transparent communication ensures you are fully aware of every stage in the process. You can depend on us to provide accurate information, practical expectations, and precise insights into your financing alternatives.


Final Thoughts

In the ever-changing business environment of the United Arab Emirates (UAE), obtaining a business loan is a strategic decision that has the potential to project  your venture towards unprecedented success. Whether you're embarking on a new startup or managing an established business, Dhanguard assists entrepreneurs like yourself in navigating the intricate dynamics of business loans in Dubai and beyond. With our specialized knowledge, personalised strategies, and unwavering dedication towards your achievements, we strive to lead you toward securing the vital financing required for transforming your entrepreneurial aspirations into reality.



Frequently Asked Questions

A business loan is a loan offered by banks and other financial institutions to help businesses borrow money for various purposes, including growth, working capital, purchase of equipment, or other business operations.

Businesses operating in the UAE, including sole proprietorships, partnerships, and corporations, can apply for business loans. Some lenders might have specific eligibility criteria based on business type, tenure, and financial stability.

Business loans can be used for various purposes, including launching a new venture, expanding an existing business, purchasing equipment or inventory, meeting operational expenses, and covering short-term cash flow gaps.

Generally, you'll need to provide documents such as business licenses, financial statements, bank statements, business plans, identification documents of owners/partners, and collateral details (if applicable).

Loan repayment periods range from a few months to several years, depending on the loan type and lender. Short-term loans might have a 6 to 18 months repayment period, while longer-term loans can extend up to 5 to 10 years.

Interest rates widely depend on factors like the lender, your business's credit profile, the loan amount, and the type of loan. It is crucial to compare rates from different lenders to find the best deal.

Collateral requirements depend on the lender and the loan amount. Some loans might be unsecured (no collateral required), while larger loans might require assets like property, equipment, or accounts receivable as security.