Understanding the Challenge

For many entrepreneurs and startups in the UAE, the biggest roadblock to expansion is financing—especially if they lack an established financial track record. Securing a business loan in the UAE without a local credit history might seem difficult, but it’s not impossible. With the right documents, approach, and financial planning, lenders are willing to support new businesses, particularly those that show strong business potential.

What Lenders Look For

In the absence of personal or corporate credit history, banks and lenders in the UAE evaluate other indicators of credibility. These include your trade license, monthly revenue, banking activity, and business plan. Strong financial projections and proof of consistent business activity—even for a short period—can help offset the lack of a credit score. Having a well-organized account with a UAE business bank and transparent cash flow will also build lender confidence.

Loan Options for New Businesses

Several banks in the UAE offer startup funding or SME loans that do not require long-term credit history but do require business viability. These may include unsecured business loans, overdraft facilities, or working capital financing. Fintech platforms and government-backed programs like Khalifa Fund and Emirates Development Bank also provide funding for startups, especially those in strategic sectors.

Key Documents Required

To apply, you’ll need a valid trade license, passport and Emirates ID copies, six to twelve months of bank statements (if available), and a detailed business plan. If your business is new, you may also need investor documents or MOUs with clients that demonstrate future income. While traditional lenders may request credit reports, many institutions are open to working with startups that can justify their funding needs through alternative documentation.

Improving Your Eligibility

If you're planning to apply for a new business loan in the UAE, start by maintaining a consistent transaction history in a dedicated business bank account. Pay bills on time, minimize cash-only dealings, and build a transparent financial trail. These steps help establish financial trust even in the absence of an official credit record. Partnering with a PRO or advisory firm can also help you choose the right bank and prepare a compelling loan application.

How 28Group Helps You Access Business Funding

At 28Group, we assist startups and SMEs in preparing and submitting successful loan applications. From choosing the best UAE loan providers to refining your financial statements and business plans, we guide you every step of the way. If you're looking to grow without an established credit score, we’ll help you build a credible funding case and connect you with lenders who support new businesses in the UAE.