Covid taught us liquidity is life. A simple three-part kit keeps you breathing if revenue stops for a quarter. ComponentTargetStorageCash buffer1 month OPEXHigh-yield money-market fundStandby line15 % of annual revenueUndrawn credit facilityInvoice-finance limit80 % of average receivablesOn-call Activation Order 1. Draw invoice line for operating cash. 2. Tap standby only if buffer
Leverage is fine; over-leverage sinks ships. Red-Flag Ratios 1. Total Debt / EBITDA > 4× 2. Short-Term Debt > 60 % of total 3. Fixed-Charge Cover < 1.2× Quick Stress Drill * Drop revenue 20 %. * Add 200 bps to interest rates. * If any ratio breaches covenants, talk to lenders before they call
Not all loans pay back the same way. Pick the wrong shape and you’ll feel it at month-end. ShapeHow It PaysBest ForCaution FlagBulletOne lump sumAsset flips, property resaleBig balloon riskAmortisingSame amount every monthSteady revenueHurts if sales dipRevenue-Share% of monthly salesSeasonal brandsLonger tail if growth slows DIY Test Drop the
Due-diligence teams love neat spreadsheets. A messy debt stack, however, can slash the multiple on your exit valuation. Seven-Item Cleanup Checklist 1. Reconcile inter-company loans; eliminate circular balances. 2. Close dormant bank accounts—one less KYC headache. 3. Extend any bridge loans shorter than 12 months. 4. Secure board consents
A working-capital line, an overdraft you’ve outgrown, and a three-year term loan—sound familiar? Knowing when to keep, switch, or clear each facility can add points to your net margin. 90-Second Decision Grid Cash CushionInterest-Rate TrendGrowth PipelineBest MoveTight (< 1 month)RisingFull order bookRefinance into longer tenor to cut
Licencing, visas, banking—founders compare zones, but overlook working-capital mechanics. Cash-Flow FactorFree-ZoneMainlandCOD settlement lag+3–7 days*Same-dayImport duty timingPay on re-exportPay at portLocal bank clearingOften T+1Real-time *Some courier partners batch-settle free-zone collections weekly. Decision Tips 1. Draw a CCC table for both setups—extra days equal real cash.
Input-VAT refunds often take 45–60 days to hit your bank. Meanwhile, suppliers still want cash. Two-Step Solution 1. File fast, file clean * Submit e-Form 311 by the 28 th. * Upload invoices in FTA-approved XML or PDF. 2. Use a VAT-bridge facility Draw only the expected refund amount; tenor = FTA
Many founders still think ESR only applies to offshore firms. Wrong. If your mainland or free-zone company earns income from distribution, HQ services, financing, IP, or holding activities, you must file an ESR return. Three-Point Compliance Map 1. Do the “relevant-activity” quiz Tick any activity that fits ESR guidance—holding
Since February 2023, Federal Decree-Law (3) says UAE buyers must pay business-to-business invoices within 30 days unless the contract states otherwise. For SMEs, that shrinks the “I’ll pay you next month” excuse. What Founders Should Do 1. Rewrite payment terms Put “net-30 (UAE Decree-Law 3/2023)” on every invoice
Switching to EV vans can cut per-drop costs—but batteries, chargers, and training pull cash forward. 30-Day Game Plan 1. Days 1-5: Finalise specs, bulk discount with EV vendor. 2. Days 6-12: Apply for any UAE green-transport grant. 3. Days 13-18: Sign battery-lease deal—drops capex 25 %. 4. Days 19-24:
Buying an MRI or digital X-ray machine ties up millions. Leasing can free cash, but loans may be cheaper long-term. FactorLeaseLoanUp-front cashLowHighTech refreshEasy swapRigidAccounting impact (IFRS 16)*Off-balance (small deals)On-balance *Small operating leases can still stay off-balance sheet; check limits. Quick Rule: If the tech will be obsolete in
White Friday can double monthly sales for cosmetics—but only if shelves are full. Inventory Checklist 1. SKU Audit: Rank last year’s sell-through; focus cash on the top 20 %. 2. MOQ Negotiation: Push suppliers for smaller lots on slow movers. 3. 60-Day Inventory Loan: Covers deposit, freight, and customs;
Schools pay tuition in term blocks; EdTech platforms often bill parents monthly, creating mismatch. Three Practical Fixes 1. Early-Bird Discount: Offer 5 % off for annual pre-pay; fund deferred service delivery with a low-rate term loan. 2. 45-Day Receivable Gap Line: Match loan tenor to the typical time between invoice and
A delivery-only kitchen proved product-market fit. Now you want a street-level café—but fit-outs, licences, and equipment can top AED 1.2 million. Capital Stack SpendFinance ToolTenorKitchen equipmentLease4 yrsFit-out & décorTerm loan3 yrsLaunch marketing12-month revenue-share line1 yr KPI Targets * Café EBITDA breakeven by Month 9. * Debt-service-coverage ratio > 1.3×
Raising equity in a cooling market can crush valuation. A small “bridge” loan buys time—if you size it right. Decision Grid SituationBridge LoanEquity Top-UpNeed < 6 months runway✔✘Valuation dip expected✔✘Strategic lead investor secured✘✔ Sizing Formula Bridge Size = Net Burn × Months Needed + 10 % Buffer Align repayment to the
Great products don’t sell themselves. Yet payroll for five reps (AED 8 k salary + commission) can feel heavy before they hit quota. Timeline & Funding Match * Months 0–3 (Ramp): Draw an interest-only loan that covers net payroll; no principal until reps generate revenue. * Months 4–6 (Growth): Shift
Apple’s tracking rules slashed ad-platform accuracy, but sales haven’t died—they’ve just shifted. 2025 ROAS Benchmarks (UAE E-Com) ChannelPre-iOS 172025Budget MoveMeta Ads4.2×3.1×–10 %Google Search3.5×3.6×+5 %Influencers2.8×4.0×+12 %SMS / WhatsApp6.0×6.5×+8 % Action Plan 1. Shift
Most Emirates-based suppliers will shave 1-3 % off an invoice if you settle 30 days early. That’s free margin if your funding cost is lower. Step-by-Step 1. Ask first: Request a written early-payment quote—never assume. 2. Run the math: If the supplier offers 2 % and your 30-day loan costs
Suppliers love to advertise “0 %” Buy-Now-Pay-Later plans for stock purchases. Look closer and you may find an 8 % mark-up baked into the invoice. Reality Check Example ItemBNPL PriceCash PriceInventory POAED 100 000AED 92 000 On a 90-day term, that hidden mark-up equates to roughly 18 % APR. Smart Buyer Playbook 1.
Many tech founders assume Islamic-compliant finance is just for asset-heavy firms, but structures like Murabaha and Mudaraba can work for SaaS, e-commerce, and marketplaces. Two Popular Structures FeatureMurabaha “Cost-Plus”Mudaraba Revenue-SharePricingFixed mark-up disclosedVariable share of revenueRepayment styleInstalments% of monthly incomeIdeal use caseOne-off dev projectOngoing subscription revenue Checklist for Compliance * Obtain
Every 1 % of equity today could be millions at exit. Yet founders often give it up to avoid interest costs. Fast Calculator Exercise 1. Enter current valuation, target raise, and projected exit value. 2. Compare founder ownership under equity-only vs mix of equity + revenue-share loan. 3. Note how a 10
Overdrafts are convenient but can cost 14–18 % per year once fees pile up. 4 Signs It’s Time to Refinance 1. APR > 14 % after all charges. 2. Utilisation > 60 % on most days. 3. Personal guarantees tied to your family assets. 4. Exit fee if you ever close
Choosing the wrong debt product can strangle cash or dilute future equity. Use this plain-English flow to decide. Quick Decision Flow 1. Monthly revenue ≥ AED 150 k? * No → term loan usually cheaper. * Yes → go to step 2. 2. Gross margin ≥ 40 %? * No → revenue-share cushions thin margins. * Yes → move to step
Cloud software, store fit-outs, new laptops—what counts as operating expense (OPEX) and what is capital expenditure (CAPEX)? Classifying spend correctly affects taxes, depreciation, and financing choices. Simple UAE Tests 1. Time Test Benefit lasts > 12 months? → likely CAPEX. 2. Tax Test Depreciable asset under UAE corporate tax? → CAPEX.
Investors love businesses that turn cash quickly. The Cash-Conversion Cycle (CCC) reveals how many days pass between paying for inventory and collecting customer cash. CCC Formula Reminder CCC = Days Inventory Outstanding + Days Sales Outstanding – Days Payables Outstanding Benchmark Snapshots SectorHealthy CCCWarning LightF&B< 60 days> 90 daysFashion&
Ramadan gifting, Back-to-School shopping, and White Friday together can decide your entire year’s profit. The danger is running out of stock exactly when shoppers are ready to buy. Inventory-Funding Game Plan 1. Look back before you look forward Pull last year’s SKU-level sales during each peak. Split items
A traditional annual budget fixes numbers in place—great for enterprises, risky for fast-moving SMEs. A rolling forecast, updated each month or quarter, lets you adapt when VAT rules evolve, when a social-media campaign goes viral, or when shipping delays hit Jebel Ali. Key Differences FeatureAnnual BudgetRolling ForecastUpdate cadenceOnce a
Running a company in the UAE often feels like a sprint from payroll to supplier dues. A rolling 12-month cash-flow forecast replaces guesswork with visibility and helps you see trouble at least a quarter ahead. Step-by-Step Walk-Through 1. Pull the raw data Export the last six months of bank transactions
Buy-Now-Pay-Later lifts average basket from AED 90 → 120, but BNPL providers hold funds 14 days. Liquidity Bridge * Receivable-Advance Facility pays 85 % of BNPL order value on Day 1; lender collects directly from the BNPL provider on Day 14. * Cost vs Gain: 1.4 % fee vs ~2.5 % margin boost from
Seasonal gift packs can drive 40 % of annual revenue—but only if glass-bottle allocation, label design, and brewhouse schedules line up. 60-Day Cash Calendar Day Task Finance Tool 1–10 Book glass bottles (30 % deposit) PO finance 11–25 Label design & print Milestone micro-loan 26–45 Brew & bottle
Generous sleep trials win clicks—but returns hammer cash flow. Reserve Formula Expected Returns = Trial Units × Historic Return Rate Reserve Capital = Expected Returns × Unit Cost Finance the reserve via a return-risk revolver. You draw only when monthly returns exceed forecast; unused limit costs zero. Reverse-Logistics Twist Reverse-pickup fees financed under
Off-shoring saved cost but doubled lead-time. Moving the assembly line to Ras Al Khaimah slashes freight-emissions but demands upfront tooling and moulds. Phase-Draw Capex Plan Milestone % of Budget Draw Trigger Tooling deposit 30 % Signed CAD drawings Test batch 40 % QC pass on 100 pairs Scale run 30 % Retailer PO received