When setting up a business, finance certainly plays a vital role. Right from getting it started with infrastructure, equipment, manpower to getting the processes rolling. And there comes a time when you have the basics in place but you need more funds to catapult your business to new heights.

Raising funds from a bank or a capital firm might be your next resolve, which could be both time consuming and an expensive affair. So before you forge ahead and approach a bank ensure you have certain answers up your sleeves. Also, to maximize your chances of getting your funds sanctioned, it will be wise to scrutinize the situation from the standpoint of a lender, most important being:

• Foundation of your business and business projections


• Nature of your business


• Operations involved


• Filling of legalities e.g., licenses, permits etc.


• Business partners involved


• Capital invested


• Account of your assets and liabilities


• Why you need a loan


• Where and how would the money be used


• How do you plan to repay the loan


• What will be your loan repayment time frame


• Are you willing to take a financial risk in the business


• Will you bear the onus of this business and manage it further


• Who, other than you is involved in the management and would ascertain proper usage of the loan money

Even though answering these questions might sound like a herculean task, but it is essential to know them clearly in your head along with paperwork for the same. Smaller the business, more strict is the evaluation of the individual behind it. It has been observed that in small businesses, the experience, knowledge, functioning and character of the business is a close reflection of the owner. It is significant to have a solid personal credit rating, since a small business is typically an extension of the individual behind it. Thus, making it all the more important to sort all the information before approaching a bank.

Raising funds from a bank or a capital firm might be your next resolve, which could be both time consuming and an expensive affair. So before you forge ahead and approach a bank ensure you have certain answers up your sleeves. On the other hand the UAE have reliable banks like RAKBANK that provide smart Business Banking with the widest range of products. Trusted banks like these offer solutions to your business finances like, working capital solutions, trade finance products, trust receipts and guarantees and foreign exchange solutions thus helping you realize the full potential of your business.