Business Loan

Business Loan is a loan where the lender gives the fund to the borrower in order to meet its shortcomings for a specific period of time under certain amount agreed by both the parties. It is acquired by an organization, having difficulties in running its day to day expenses, want to purchase new machinery, expand its business or opening of a new branch, etc. However, applying and getting Business Loan approved are two different things. There are certain guidelines which a banker take into consideration before providing a loan. Let us look at that, they are

  1. Character of your Business
  2. Conditions of your Business
  3. Collateral that you can provide
  4. Cash Flow in your Business
  5. Capacity of your Business

The plunge in the oil price and the Qatar crises has made the UAE economy resilient. Banks are now cautious and more selective in granting loan as the resources are limited. According to data from Khalifa Fund, ‘Approximately 50-70 per cent of SMEs application for funding have been rejected.

Today, most of the people need loans for various reason, it can be home loan, car loan, business loan, machinery loan or for any other personal loan. Most of the time people are not aware and even confused to opt for which loan and from which Bank, as different bank have different rate, policy and criteria for granting loan. To help you in such situation we are here to deal with several bankers on your behalf. To get the best rate, to advice you with the procedure and to clear all your doubt and queries.

Our responsibilities also includes to makes sure that the applicant has understood all the terms and conditions involved while applying for a loan. To collects the details from the clients. To submit the documents in the bank on behalf of the customer. Timely updating the client for the loan process. To calculate the payments that need to be done and to communicate the same. To assure you for providing quality service delivery.

REASONS YOUR BUSINESS LOAN BEING REJECTED :

You’ve got bad credit

It basically tells about your history, if you have ever missed a payment, or not paid on time, which provide a risk for the lender to grant you loan.ext.

Your business is too young

The banker give preference to the company which is old, stabilized, have good turnover as compared to the company which is newly set up.

Your plans for your loan are unclear

The borrower must illustrate in detail to the lender as for how the loan will contribute to the growth of your business. Generally, the lender wants to see that you have identified the purpose of your loan.

High debt service ratio (DSR)

It means that the applicant’s existing level of borrowings and repayment is very high compared to his income, so the bank rejects the application.

Al Etihad Credit Bureau (AECB)

It is a document that includes your personal identity information, details of your credit cards, loans and other credit facilities, along with your payment and bounced cheque history.

Your business has no credit history

In order to run a business, you need to have a proper account with the bank, your business must be legally structured, proper trade license, audit report, etc. This helps to strengthen or we can say a step forward for the loan.

You haven’t offered the right collateral

Right Collateral must be provided to the banker, as they need assurance that their money will be paid on time.

Your industry presents a risk

The lender will take into consideration at your industry/business. The creditworthiness of your unique business. They try to understand that whether you will be able to return the loan amount.

Weak documentation or banking records

If you failed to produce documents to support the amount or consistency of income or bank statements, then your loan will be rejected…