Subtleties of obtaining an investment loan in the UAE

Subtleties of obtaining an investment loan in the UAE

If a company decides to go to the next stage of development and improve its product, then it may encounter certain difficulties. The main difficulty in this case is the lack of funds available to the company. In this situation, one of the most correct steps will be to use an investment loan.

Lending opens opportunities and solves the main tasks, for example:

    •  development of more modern technologies;

    •  purchase of new equipment;

    •  construction or purchase of real estate for commercial purposes;

    •  optimization of the management method of the company;

    •  carrying out repairs in their own premises and many other tasks related to business growth.

The essence of an investment loan comes down to a kind of loan for a long period of time. The main goal is the growth of the economic potential of the company. This loan is issued by a bank that takes on risks in the event of a significant deviation from the investment plan. This feature is the main reason for the high bank requirements before the loan approval.

The nuances of obtaining a loan in Dubai.

Small and medium-sized businesses, trading companies and manufacturing enterprises can get an investment loan in the UAE. The fundamental requirement is the age of the company, it must be more than three years. If the company exists for less than three years, the owners need to provide documents about other businesses. For example, it may be a parent company.

There are several additional requirements that need to be considered:

    •  you must have a company development plan;

    •  the bank needs to be sure that you are able to give a guarantee or provide a security deposit;

    •  you must provide a statement of the financial condition of the company for the past two-three years;

    •  you must provide documents confirming your ability to repay the loan.

Real estate, some equipment, machinery, etc. can act as collateral for taking an investment loan. The conditions for issuing a loan directly depend on the results of the financial report and the collateral.

Keep in mind that the bank has the right to demand other documents that will be needed specifically in your case. It is best to find out all the rules and requirements for documentation in advance at the bank in which you plan to take a loan.