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How to Finance your business needs

The Vat Consultant

To raise our funds, it is important to keep in mind that each type of business has access to different types of financing. The characteristics of each company determine how to make money. Loans to companies are not the only way to raise business funds. Currently, there are different types of ways to make money for our business in the market.

Letter of Credit

Letter of Credit in Dubai, or documentary credit, is a document for a bank to issue a payment order for a customer, the beneficiary of which is the goods or a third party to whom the goods are paid. Letters of credit are a payment tool and, in some cases, fund both domestic and international purchases. In the next post, I will elaborate on what a Colombian letter of credit is and what types of letters of credit it is.

Trade Finance

Trade Finance Dubai is considered with the financing of goods or services in a trade or transaction from a supplier to an end buyer. It accounts for 3 percent of world trade; there is a value of about 3 trillion dollars a year. “Trade finance” is a generic term and includes a variety of financial instruments available to importers or exporters.

Trade Finance Dubai include:

  • Order Finance
  • Stock finance
  • Structured Commodity Finance
  • Invoice Finance (Discounts and Factoring)
  • Supply chain finance
  • Letter of credit (LC) and;
  • Bonds and guarantees

Working capital finance

Asset-based financing or Asset Finance Dubai is an important liquidity solution for leveraging the working capital that companies need. It can be provided by entities supervised by Colombian financial supervisors who provide this type of credit and companies supervised by corporate supervisors.

Construction equipment finance 

Construction equipment finance is granted by a co-operative to build a structure on a partner-owned site or acquire a site on which the structure will be built.

The requirements for granting a Construction Equipment Loan include the following documents:

  • Copy of solar certificate
  • Building permit for the structure granted by the Municipal Permit Bureau
  • National Insurance Fund Corporation Policy
  • Estimate of material and labor costs required for structure construction
  • Evidence of corresponding municipal tax payments

One of the benefits of requesting and obtaining a Construction Equipment Loan is that members of the co-operative will not start paying the loan monthly until six months after being granted. This gives you a reasonable amount of time to complete the construction of the structure. During the above period, the partner will only pay the interest generated by the payments made.

Machinery Equipment Loan 

Machinery Equipment Loan is a credit line designed in an agile and professional way, in a competitive financial situation, to solve the need for portfolio or lease financing to buy productive assets.

Through this line, you can fund the following production assets: medical equipment, construction machinery, agricultural machinery, industrial equipment, shelves, automotive diagnostic equipment, power plants, forklifts, compressed air equipment, mining equipment. It allows your company to fund its new productive assets up to 80% of its value.


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