You need to have sufficient funds in order to fuel your operations, most especially if you are considering of building a business in the UAE. You really need such if you want to establish your own brand or name that consumers will trust. Indeed, if you have the right resources, you will gain the freedom to make crucial decisions and come up with strategies that will help your new firm to take shape as well as become competitive with established brands today.
Among the biggest challenges you might encounter is finding the capital you need to grow. The time might be right for your business; hence, it is very crucial for you to establish new relationships with potential partners, suppliers, and buyers who can provide you with you need to thrive in today’s competitive market realm. But first, you have to inspire confidence in these new key players – be sure to meet all your financial commitments.
The Best Financial Instrument You Can Use
The capital growth fund is indeed one of the essential financial instruments you can take advantages of. This is a pool of investments with the potential to grow. Typically, this fund is composed of fixed income investments along with stocks and shares.
There are indeed several reasons investors are opting for this particular fund. Although the price of the units in the fund can go up and down, just like other investment types, the risks are sure to be spread throughout a wide portfolio so that the risks will be reduced significantly. Blue Chip Stocks are often involved – these are known for positive growth and good dividends. In fact, this is considered ideal for investors who are looking for great gains over the long term.
Since your capital is growing steadily, you can also explore the use of financing tools so you can take further steps toward your expansion goals. UAE banks indeed offer tailored growth solutions that will allow you to negotiate favourable terms as well as build trust with suppliers and buyers via financial and non-financial guarantees. And among the best solutions you can use is the standby letter of credit.
A standby letter of credit can be an alternative to cash. It will help you get deals while your cash remains protected. Your suppliers will likewise be provided security or an assurance that your bid is honoured.
In other words, your suppliers and buyers will be protected in case you don’t perform well. At the same time, your financing needs will be addressed properly. Standby letters of credit are a sign of good faith during business transactions. Indeed, with these financing solutions, you will have the capital you need in order to move your business to the next level and to ensure its success.
Source: HSBC in UAE offers different financing solutions you can use for an efficient business growth and expansion.