What if I need to extend my business loan?
If you wish to extend your business loan, contact your loan provider. They may be happy to extend your current loan or you may be able to refinance which means you buy out your loan by another bank.
Can additional commercial loans be added to any existing one in future?
In most cases, yes – provided that you have a history of reliable repayments on the existing loan. Again, this will depend on the loan product and provider.
How much can I borrow and for how long?
This entirely depends on the loan product and provider you choose as well as your specific situation.
Will I need to have my business current account at the same bank as my loan?
Not always but often it makes more sense and may mean you are eligible for better benefits and more attractive interest rates.
What alternatives are there to taking a business loan?
Financing your business falls into two key categories: debt and equity. Debt includes all types of loans whereas equity involves shares and the transfer of some ownership. By financing your company with a loan, you avoid relinquishing any control of your business.
What key criteria should I consider before applying for a business loan?
- Eligibility - First of all, you should identify which loan products and providers you are eligible for application to. Some banks may require you to have been in business for a certain length of time or have a minimum annual revenue
- Amount required – Consider how much you want to borrow and then compare those banks whose maximum loan amounts exceed this
- Process – consider how quickly the application process takes? How quickly do you need the loan?
- Interest rates – do flat or reducing interest rates apply? See below for details of how these differ
- Fees – consider all fees applicable such as arrangement fees and early settlement fees
- Flexibility – What if you wish to extend the loan? What if you require flexibility in the repayment schedule?
- Customer service - Will you have a dedicated relationship or account manager to service all your business needs?
How do I choose a business loan provider?
Compare, compare, compare! Use our smart comparison tools to choose the best business loan for you.
What are the main reasons why UAE companies seek commercial finance?
There are any number of reasons why a business may need to take out a loan including to start a company, to purchase inventory, to expand a business, to ease cash-flow management, for import and export shipping, mergers and acquisitions or to strengthen the company financials.
What types of business entity are normally eligible to apply for commercial finance?
The following types of business are normally eligible to apply for a loan:
- Limited Liability Company (LLC)
- Sole Proprietor
- Partnership
- Free Zone Companies
- Branches/Subsidiaries of Offshore Entities