Finance plays a very important role in determining the life of a business, and the business which has proper financial backing is more likely to thrive in a business market. In the earlier days, this meant that a business should be well established and have very strong financial backing, but this scenario has changed in the present.
In the present, there are many other ways to generate funds, which means that even startups and newly formed businesses can acquire funds to continue and develop their business. Below are enumerated some of the ways in which a business can generate more funds in the United Arab Emirates.
Various Business Financing Options
Given below are some of the options to fund your business in the United Arab Emirates.
1.Self-Made Investment
First and foremost, a businessman needs to fund the business with its own money. Making investments with your own money can act as a boon for your business. when you are investing your own money, you do not have an obligation to pay back the sum with interest attached to it. Having less debt will also help increase the credibility of your business.
2.Loans (Bank or Individual)
Loans are a very good way to acquire funds in lesser time. The timings of the loans can be decided by bitch the parties by reaching a consensus. These loans may become a good way to receive funds but can also pose problems in the future. Many loans have hidden requirements to be fulfilled or have a high rate of loan repayment, which makes it a bad option at times. This is why the management should have good Planning and Budgeting for the company.
3.Business Incubators
Business incubators are a suitable option for a newly formed company as they assist the businesses in their growth and provide them with the best possible services which will ensure their survival and growth. These business incubators help design strategies for the future of the company and also assist them in following the compliance rules and regulations of jurisdiction.
4.Angel Investors
Angel investors are such individuals who are impressed with a business idea and want to invest in the said idea. These individuals have strong financial backing and have strong ties to people, which can make things happen. These people are called angel investors because they help these people provide the necessary resources for the survival of a business and also assist in the growth and development of the business from time to time.
5.Venture Capital
These are people who are impressed with the business idea and want and part of your company in return for the funds being provided. As a part of the company now belongs to the venture capitalist, the individual traits the company like his own and works on the company accordingly. This means not only monetary benefit is provided, but the company is also shaped and molded according to the experience of the Venture Capitalist.
There are many more ways by which a businessman can generate funds in the United Arab Emirates. Forming a company in the UAE is a very big deal due to the various benefits the country poses. If a person is looking to set up a company or already has a firmly established, then they need to look into the various financial requirements of the company
If you are looking to avail of such services, then you must look into the services provided by JAXA Chartered Accountants. The professionals at JAXA will not only of/ through the financial statements to understand the financial health of the company but will also help the company by providing a viable and suitable solution to the management.
If you need any more details on the services provided by JAXA or have any queries, do Contact Us. We will be happy to resolve all your queries.
Reach us on WhatsApp