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:
Documents Required
Securing sufficient money is frequently a crucial first step toward development and sustainability in the ever-changing business world. For many entrepreneurs and enterprises in the UAE, term loans emerge as a viable financial tool to fuel their ambitions. A term loan is a type of loan provided by financial institutions to businesses or individuals for a specified period, typically ranging from one to ten years. Term loans are a cornerstone of business finance in the UAE. It empowers entrepreneurs to pursue their ambitions and drive economic growth. Whether funding expansion initiatives, acquiring assets or managing working capital, term loans offer businesses the financial flexibility and stability they need to thrive in a competitive marketplace. This guide delves into term loans, exploring their norms, benefits, and the best options available in the UAE market.
A term loan is a type of borrowing wherein a financial institution provides a lump sum amount to the borrower, repaid over a predetermined period with a fixed or variable interest rate. Unlike revolving credit facilities such as lines of credit, term loans come with structured repayment schedules and are typically used for specific purposes like expansion, equipment purchase, or working capital.
With its customizable business finance package, the Business Term Loan, an award-winning business package, offers SMEs more than just business lending finance—it's an advice tool that helps them manage their finances and fosters business growth.
In business finance, term loans serve as a cornerstone for capitalizing on growth opportunities and addressing operational needs. Whether you're a startup looking to scale your operations or an established firm aiming for expansion, a well-structured term loan can be instrumental in achieving your objectives.
Key Features of Business Term Loans:
Depending on the lender and the borrower's creditworthiness, business term loans in the UAE can range from moderate to substantial amounts, catering to diverse financial requirements.
Term loans offer flexibility in choosing repayment periods, varying from a few months to several years, allowing businesses to align their repayments with cash flow projections and revenue cycles.
Interest rates on term loans may be fixed or variable, depending on market conditions and the lender's policies. Fixed rates provide stability and predictability in repayments, while variable rates offer the potential for cost savings if market rates decrease.
Some lenders may require collateral, such as real estate or business assets, to secure the loan, mitigating the lender's risk and potentially resulting in lower interest rates.
While the application process for term loans may vary across lenders, it typically involves submitting financial documents, business plans, and other relevant information to assess the borrower's creditworthiness and loan eligibility.
Dhanguard will assist you throughout the process of getting a business term loans
Term loans offer numerous advantages to businesses operating in the UAE:
Flexible Financing: Term loans provide businesses with the flexibility to access a significant amount of capital, which can be used for various purposes such as expansion, equipment purchase, working capital, or debt consolidation.
Predictable Payments: With fixed monthly payments, businesses can accurately forecast their cash flow and budget accordingly, thereby mitigating financial uncertainty.
Long-Term Planning: The extended repayment period of term loans enables businesses to undertake long-term projects and investments without immediate financial strain, fostering sustainable growth.
Builds Credit History: Timely repayment of term loans helps businesses establish a positive credit history, which can facilitate access to additional financing in the future at favourable terms.
Below mentioned are the paperwork needed for business term loans:
Proof of Address, Bank Reference Letter, and, if relevant, Company Profile
12 months' original bank statements for the company's
A current passport bearing a UAE residency visa, as well as the Emirates IDs of all signatories and shareholders
A valid trade license
A certificate of commercial registration,
An incorporation certificate for a free zone
A memorandum of association
Board resolution or power of attorney, if appropriate
The qualification required to get a business term loan are:
Available to all registered companies that work in the manufacturing, professional, trading, or service industries.
A company that has been in operation for at least two years and generates at least AED 2 Million in sales annually.
At least six months of banking with the required bank, with an AED 40,000 minimum amount maintained in the specific bank account.
Businesses in a bustling financial hub like the UAE can access many term loan providers, each offering unique features and benefits. To help you navigate this landscape, we've curated a list of some of the best term loan options available in the UAE:
Emirates NBD Business Loan: With competitive interest rates, flexible repayment terms, and expedited approval processes, Emirates NBD offers custom term loan solutions to suit the diverse needs of businesses across various sectors.
Mashreq Bank Term Finance: Mashreq Bank's term finance solutions provide businesses with access to substantial funding at attractive interest rates and personalized advisory services to optimize financial management and growth strategies.
First Abu Dhabi Bank (FAB) Business Installment Loan: FAB's business installment loan offers businesses the flexibility to finance equipment purchases, expansion projects, and working capital needs with convenient repayment schedules and competitive pricing.
RAKBANK Business Term Loan: RAKBANK's business term loan solutions combine competitive interest rates, simplified application processes, and dedicated relationship managers to empower businesses with the financial resources they need to thrive.
Commercial Bank of Dubai (CBD) Business Finance: CBD's business finance offerings encompass term loans designed to suit the evolving needs of businesses, with features such as fast approvals, flexible repayment options, and dedicated relationship managers to provide personalized support throughout the borrowing journey.
Term loans represent a valuable financial tool for businesses in the UAE, providing access to essential capital for growth and expansion initiatives. By understanding the complexities of term loans and exploring the best options available in the market, businesses can unlock new opportunities and propel themselves towards greater success in the dynamic business landscape of the UAE. Whether you're a budding startup or a seasoned enterprise, harnessing the power of term loans can be the catalyst for realizing your entrepreneurial dreams and achieving sustainable growth.
At Dhanguard, we go the extra mile to ensure you secure the best term loan according to your specific needs. Leveraging our vast network of partnerships with leading banks, we compare and analyze various loan options to identify the most favourable terms for you. Our dedicated team works tirelessly to guide the complexities of the lending landscape, guaranteeing that you receive nothing short of the best financing solution available. Trust Dhanguard to guide you through the loan process seamlessly, providing expert assistance every step of the way.
