Help for setting up a business
By padamchhabra •
I work in a private company and earn Rs. 35000 per month. I and my friend are thinking of starting a business for which I need to invest Rs. 200000 by next month. I have some saving too, what options do I have?
All the banks have a hidden inside system of loan parameters, one of which is to see that the borrowing business has a success track record of at least three years, and whether that business shall continue successfully for the loan repayment period or not.
This is a new one on me .. Is this true for all GCC ?
Bank's do not give loan to any new business. They see the track record of business success for at least 3 years, because they do not want to lend to a business that is not able to return the money with interest.
The shop and office rents are the biggest nightmare for a businessman here. If you can cover that in long run then you will at least be able to survive in the market (forget about the profit). payments from big contracting companies is also a big big problem. Better invest in some secure venture in your country and be happy.
Dear Sir,
The base capital of Qr 200,000 is to be blocked in bank till your company formation procedure is completed which is usually 15-30 days. This amount is usually deposited by your Qatari partner (sponsor) in form of cash or equivalent of bank acceptable assets.
If this Qr 200,000 is working capital then you have multiple options to get soft loans in Qatar.
Regards,
Sheen Services WLL
www.SheenServices.com
The best option for you, is to continue earning, what you are earning, save some and then invest into safe security or bonds in your native country or invest in the domestic real estates for sizeable gains.
The cost of doing business in Qatar is high, and in the face of huge competition due to small size of local business market, the new businesses are hardly able to avoid losses, which is why, in the first two years, over 95% of small business loose out their capital money altogether. On top of it, there is no financial fall back support available to new businesses. In a best case scenario, earning net profit over Qar. 15 k per month is a far cry for any small business having a capital base of less than 500 k, so if someone is telling you about large profits then either he is new to Qatar or he is lying, for sure.
The option is to go to a bank.. Show them your Business plan , cashflow projections and then ask for a loan..
Alternatively , you could go to a loan shark or your father in law
In Qatar you need 20 times more money to start a business.