Companies need financing for different reasons. Some need cash to run and grow their operations; others want to turn their borrowing capacity into a long-term asset. Our corporate financing service covers both paths. We study the company's position, recommend the structure that fits and present a well-prepared file to the banks most likely to support it.
First: corporate financing for company operations
This option supports the day-to-day activity and growth of the business. It may take the form of a term loan, working capital facilities or other bank products, depending on the company's needs and the bank's policy.
- Working capital to cover stock, receivables and supplier payments.
- Funding for equipment, fit-out or expansion into new branches or markets.
- Repayment plans aligned, as far as the bank allows, with the company's cash cycle.
Banks usually review audited financial statements, bank statements, the trade licence, the company's credit record and its track record in the UAE. Newer companies may be asked for additional security or personal guarantees from the owners.
Second: commercial real-estate financing with a company guarantee
In this option, the company buys an income-generating commercial property, such as offices, retail units or a commercial building, with financing backed by the company's guarantee. The property's rental income covers some or all of the repayments.
The idea is to direct the financing towards a long-term income-generating asset instead of cash liquidity. Rather than borrowing cash that is spent, the company builds an asset on its balance sheet that produces income and may increase in value over time.
- The property is assessed on its tenants, net income, age and location.
- The company's financial strength supports the application as guarantor.
- The company may also occupy part of the property for its own use, where the bank allows.
Choosing between the two options
The first option suits companies that need liquidity to run operations or deliver existing contracts. The second suits companies with stable profits that want an asset to preserve value over the long term. In some cases both can be combined in one plan, as long as total repayments stay comfortable for the company's cash flow. We show you this comparison in figures before any decision.
Who is it for
- Established UAE companies looking to fund operations or expansion.
- Companies holding cash that want to put it to work in a real asset.
- Groups and family businesses planning long-term property holdings.
How it works with Lugain Global
- Needs assessment: we meet the management to understand the purpose, amount and timing of the financing.
- Financial review: we review financial statements, bank statements and existing facilities to judge borrowing capacity.
- Structure recommendation: we explain which option fits, operational financing or commercial real estate, and why.
- Bank submission: we prepare the credit file and present it to suitable partner banks.
- Negotiation and follow-up: we compare offers, negotiate within bank policy and follow up until drawdown.
Important to know
Approval, pricing, security and tenor are decided by each bank according to its own credit policy, which may be stricter than described here. Rental income from commercial property is not guaranteed. Lugain Global is a financing broker, not a lender, and our fees are agreed in writing before work starts.