Private credit or a bank loan for a growing UAE business?
Compare both routes through the same cash-flow model, term sheet and execution timetable.
The comparison should cover total cost, amount, tenor, amortisation, security, covenants, conditions, information requirements, flexibility and the repayment or refinancing route.
When bank debt may fit
A bank facility may fit a borrower with established operating history, predictable cash flow, acceptable security and a requirement within the bank’s credit policy. Compare fees, conditions, covenant headroom and execution risk. The Central Bank of the UAE publishes information on its supervisory remit for licensed financial institutions.
When private credit may fit
Private credit may support a tailored acquisition, bridge, project, refinancing or special-situation structure where the risk is understandable and appropriately priced. Assess the lender's funding certainty, documentation, control rights and enforcement position.
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Compare total cost
Include margin or coupon, arrangement and advisory fees, legal and diligence costs, commitment and non-utilisation fees, prepayment terms, hedging, warrants or equity participation and the economic cost of restrictive covenants.
Protect operating flexibility
Model covenant headroom and cash sweeps under base and downside cases. Review restrictions on acquisitions, distributions, additional debt, asset sales and capital expenditure. Reporting and consent requirements should match the operating plan.
Prepare one lender-ready package
Use historical financials, management accounts, a forecast, debt schedule, use of proceeds, security, ownership, risks and repayment route. A consistent package allows offers to be compared accurately. See the borrower checklist.
Related pages
Frequently asked questions
Pricing and total cost are transaction-specific. Compare margin or coupon, fees, legal and diligence costs, prepayment terms, hedging, equity participation and covenant economics.
It may fit an acquisition, bridge, project, refinancing or special situation requiring a tailored structure, subject to credit quality, security and repayment visibility.
Prepare historical financials, management accounts, forecast, debt schedule, use of proceeds, security, ownership, risk analysis and repayment or refinancing route.
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.
