How I did it

Noas Ahmed Abdulkafour
Managing Director, Tarwada Cargo Transport
“I started my business in June 2007 and once the financial crisis struck, loans from banks were very difficult to come by. Thankfully we had our own resources to fall back on. My advice to SMEs is to take a loan amount and tenure that they are comfortable repaying and avoid the temptation of top-ups.”

Sandeep Agarwal
Managing Director, Asdood General Trading LLC
“In the initial years of my business I took loans from banks. Disbursement did not happen in days as promised, but took couple of weeks in most cases. The documentation was not very onerous. The interest rates were on the higher side though. An SME has to ensure a clean banking record if it wants to grow its business.”

Jean Bellumat
Managing Director, Globcom General Trading LLC
“Business loans are not quick loans as they are made out to be.
“The paperwork in terms of bank statements can be very time-consuming if you have multiple bank accounts. Besides, in general, banks tend to start with small amounts and then go for top-ups.
“I believe the turnaround time could be much faster and the interest rates and processing fees should also be lower for higher amounts. I have always made sure that I meet my Equated monthly instalments in time — one bounced cheque can spoil your track record.”

Suad Alhalwachi
Director, Education Zone
“When I tried to apply for a loan for establishing my organisation, I was told to provide audited accounts for three years — which means one has to make use of one’s own finances to set up a business. SMEs have to pay a lot of money to the auditors in order to audit their account. Some banks have policies that make it difficult to get a loan.
“Sometimes the interest rates charged are atrocious with repayment period of only four to five years, which is too small a duration for a small business unit. SMEs should look for loans with low-interest rates, otherwise it is ideal to borrow from friends or family. An entrepreneur has to cultivate the business idea, not run around managing payments for rent, staff, etc.” 

Vijay Samyani
Managing Director, Concept Brands Trading LLC
“I am in business for the past 22 years and I take loans for varied business requirements. The biggest problem with loans is too much paperwork, which must shrink down to at least 20-25 per cent from the existing one.
“Second, banks have a mandatory requirement for details of five top suppliers and five top customers, which is unacceptable to businesses in certain contexts as, if for some reason your loan is declined, you would have disclosed your business with them. Banks require a security check as well and this is another concern. An elimination of these three factors when applying for loans would make life for SMEs much easier.”

Mohammad Al Hashemi
Managing Director, Emirates Trans Graphics
“My eight-year-old business has grown reasonably well. Frankly speaking I have not faced any difficulties as such. In fact, I have only experienced easy, smooth procedures. I could say the hardest part for me is when relationship managers of banks approach us and visit us for evaluation and it seems as if 90 per cent is approved and done — but it then moves to the credit department, who have not visited us or know much about us, and then the result is zero.
“While we provide extended payment terms to our customers, what we get from banks is much lesser. We have also observed that commercial banks with Islamic banking are more cooperative as compared to traditional Islamic banks.”