Business finance can fund equipment, working capital, contracts or expansion. Lenders look at your cash flow, banking history, existing liabilities, industry, ownership and ability to repay, and requirements vary by lender and product.
Can you get one?
Mainland companies, free zone companies, sole establishments and UAE branches may apply, depending on the lender. Approval is never automatic, because a trade licence only proves legal establishment. Established firms with steady revenue and organised accounts have more options. New companies may find conventional borrowing harder, although some startup and asset-backed programmes exist.
The application, step by step
1. Define the purpose: working capital, equipment, vehicles, inventory, expansion or a cash-flow gap. 2. Calculate what you can afford: review revenue, profit, existing repayments, VAT and corporate tax, and seasonality. Stress-test a cash-flow forecast. 3. Check eligibility, because each lender sets its own criteria. 4. Check your company credit report through the credit bureau. Resolve overdue facilities and returned cheques, and avoid several applications at the same time. 5. Select the product to match how the funds will be used and repaid. 6. Prepare the documents. Keep names, licence details and figures consistent. 7. Build the financial case: a business plan, statements, forecasts and collateral details. 8. Compare the total cost, not only the advertised rate. Look at fees, insurance, valuation and early-settlement charges, and ask for the key facts statement. 9. Submit. Lenders may verify documents, review six to twelve months of bank statements and inspect the premises. 10. Review the facility letter and confirm the amount, total cost, instalments, security and default terms before you sign.
What lenders look at
- Operating history, turnover, cash flow and profitability
- Banking conduct, such as returned cheques or overdraft excesses
- The credit history of the company, owners and guarantors
- The industry and the available collateral
No single minimum turnover or company age applies to every loan.
Types of finance
- Term loans with scheduled repayments
- Working-capital facilities such as overdrafts and revolving credit
- Trade finance, including letters of credit and guarantees
- Invoice finance, and POS or e-commerce finance
- Equipment and commercial vehicle finance
- Secured loans backed by assets
- Islamic finance structures such as Murabaha, Ijarah, Musharakah and Wakalah
Startup funding
Development banks may finance qualifying startups in priority sectors, subject to assessment. Other options include owner capital, equity investors and licensed crowdfunding.
Documents
- Trade licence, incorporation documents and board resolution
- Passports, Emirates IDs and visas of the owners and signatories
- Six to twelve months of bank statements
- Management accounts, VAT returns and the tenancy contract
- Audited statements, where required (more likely for large, secured or complex facilities)
Costs
The interest or profit rate (flat or reducing, fixed or variable), processing fees, insurance, valuation or legal charges, and early-settlement and late-payment charges.
Improving your chances
Keep organised accounts and separate personal and business transactions. Maintain clean bank conduct and realistic forecasts. Explain unusual transactions and ask only for the amount you can support.
Why applications are rejected
Weak cash flow, high existing debt, a poor credit history, incomplete documents, an unclear use of funds, unrealistic projections or an activity that does not match the licence.
Risks
Repayment pressure, personal liability under guarantees, the loss of pledged assets, rising costs on variable-rate facilities, over-borrowing and restrictive covenants.
Alternatives
Shareholder or equity capital, supplier credit, customer deposits, leasing and better collection of receivables.
FAQs
- Can a new company get one? It is possible but hard for unsecured conventional finance. Startup programmes and owner capital are alternatives.
- Is collateral always required? No, but unsecured facilities may still need guarantees.
- How long does approval take? From a few business days to several weeks.
Clean books make financing easier. See our accounting and bookkeeping service and our audit services.
Key takeaways
- Lenders look at cash flow, banking conduct, existing debt and a clear purpose.
- Compare total cost, not just the headline rate.
- Organised, audited accounts improve your odds.
Frequently asked questions
Can a new company get a business loan?
Possible, but difficult for unsecured conventional finance. Startup programmes and owner capital are alternatives.
Is collateral always required?
No, but unsecured facilities may still need guarantees.
How long does approval take?
From a few business days to several weeks.
Talk to a chartered accountant
Questions about your own situation? Reach us directly and we will reply with clear next steps.
This article is general information and not advice for your specific circumstances. Rules and thresholds change, so confirm the current position before you act.
