For starting a business, getting all your financial support from one source is not enough. Sometimes, there are many options that exist in the market which are easy to access for raising your start-up capital. Here are 5 amazing funding options in the UAE which can be fruitful for your overseas business.
1. Personal Investment
If you think you have enough savings to finance your start-up business, then no other option is better than this, as you won’t have to be worried about paying high-interest rates or meeting the requirements of lenders. Even if you apply for loans from investors and bankers later, it will prove your commitment to your business when they will find out you have invested a major chunk of your personal savings, and they might approve your loan.
Not all entrepreneurs are interested in getting a loan from venture capital firms, and venture capital firms are more interested in investing their money in technology-oriented businesses and companies which have high chances of growth in the sectors of information technology as these could potentially prove to be more profitable for them. Venture capital firms also demand a certain portion of ownership in your business for the loan they provide your company which provides them more control in the start to run it more efficiently.
3. Angel Investors
These are individuals with strong financial standing or those who retire at executive levels from a company and are willing to invest in small businesses with high potential for growth in the future. They are also mentors who guide you in the right direction along with providing financial assistance to your start-up business.
4. Business Incubators
A business incubator is also a viable option to apply for small business loans to finance your start-up business; these incubators are there to support your business at various stages of development. They would even help you get access to potential investors if they are unable to assist you on their own. Business incubators are mostly under the supervision of the government to encourage entrepreneurs to start their business to create more job opportunities in the market.
5. Bank Loans
Applying for a small business or short-term business loan from a bank is most probably the first thought that comes to every person who is about to start a new business and needs finances to start it off the ground. It’s true that banks offer many advantages to loan-takers, willing to provide personalized services or customized repayments methods for the latter. You should look for a bank whose offers will meet your specific needs and requirements related to a loan. The only hurdle that comes in the way for some of the business owners is that they don’t fall into the criteria to apply for a small business loan due to poor personal credit score rating, etc. Banks make them undergo many processes before approving a loan, for which one needs to be well prepared. It is advised you go and ask for the requirements of the bank to apply for a loan, and then if you think you fulfill all their requirements, apply for a loan; otherwise look for some other option instead of getting your loan application rejected.