How should a UAE company choose its financing route?
Start with the cash-flow need, then select the capital structure that remains supportable under downside conditions.
Define the amount, use of proceeds, required date, repayment source, available security, cash-flow capacity, ownership constraints and acceptable control rights. These inputs determine whether bank debt, private credit, equity, mezzanine, project finance or an asset-backed structure deserves priority.
1. Define the funding requirement
- Amount and currency
- Exact use of proceeds
- Required funding date
- One-time requirement or recurring facility
- Operating, acquisition, project or shareholder purpose
2. Identify the repayment source
Debt requires a credible repayment source: operating cash flow, asset cash flow, receivables, asset sale, refinancing or another documented event. Equity requires a credible value-creation and exit case. Match the instrument to the source and timing of returns.
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3. Test the principal routes
| Decision factor | Debt or credit | Equity or risk capital |
|---|---|---|
| Cash servicing | Interest and repayment | No scheduled debt service |
| Ownership | Usually preserved | Dilution and governance rights |
| Best evidence | Cash flow, security and repayment | Growth, valuation and exit |
| Primary risk | Default and refinancing | Dilution, control and valuation |
4. Compare executable terms
Compare amount, total cost, tenor, amortisation, security, covenants, governance, conditions, information requirements, prepayment or exit rights and funding certainty. Use the same forecast and downside case for every option.
5. Run a competitive process
Prepare one consistent lender or investor package, define the target universe, control information release and compare written proposals. Record every assumption that remains conditional.
Matchpoint mandate fit
Matchpoint undertakes corporate finance, financing and M&A mandates from USD 5m upwards, subject to evidence, readiness, jurisdiction, applicable regulation, capacity and a written engagement. Review the mandate criteria.
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Frequently asked questions
The amount, use, timing, repayment source, security, cash-flow capacity, ownership constraints, governance tolerance and downside resilience.
A parallel process may be appropriate when both structures are genuinely acceptable. Use consistent information and compare written terms on the same assumptions.
Matchpoint undertakes mandates from USD 5m upwards, subject to fit and written engagement.
Last updated: July 2026.
Discuss a mandate
Speak to a partner about how this applies to your transaction. A partner responds personally, typically within one business day.
